London’s mayor, Sadiq Khan, has announced that he will be taking a closer look at the impact of foreign investment on the capital’s property market.
In an interview with the Guardian, Khan explained that foreign investors are causing real concern for the city’s property market, leading him to the decision to look into the issue for the first time ever.
It’s clear we need to better understand the different roles that overseas money plays in London’s housing market, the scale of what’s going on, and what action we can take to support development and help Londoners find a home,” Khan said.
“That’s why we are commissioning the most thorough research on this matter ever undertaken in Britain – the biggest look of its kind at this issue – so we can figure out exactly what can be done.”
Although it might take some time for the results to be revealed, an interesting question for many developers to ask themselves is whether to shift their focus away from the capital. Especially considering the increase in London’s house prices whilst yields are dropping, some savvy investors might have already started sussing out Britain’s other cities.
Khan’s decision to investigate foreign investment might’ve just been another push for investors to find new UK investment hotspots.
