London First publishes a report addressing concerns over inward investment in London

London First has published a report on the impact of inward investment on London housing, which addresses concerns about overseas purchasers buying up newly built London homes while there is a housing shortage in the capital. The report states that limiting inward investment would only worsen the housing situation due to inward investment financing market housing supply, funding the provision of social housing and supporting jobs in London.  


The report states that London is an international business city with a prosperous history built upon international trade and if that trend is to continue, housing must be available for foreign nationals. Inward investment has proven to underpin house building with £3bn being funnelled into the London housing market in 2012. 

According to the report, properties bought by inward investors are predominately either rented-out or become the main residence of those investors. The report states that in 2012: 

  • 58% of investors bought their property to rent it out to others
  • 27% of investors bought their property to live in
  • 15% of investors bought their property as a second home

The report states that inward investment by foreign nationals has the added benefit of job creation and steady growth in London, but the minimum target of building 32,210 new homes per year, set out by the mayor, hasn’t been met since the 1970s. The report notes that London is still building too few homes and measures must be taken by the city to create a new housing settlement for London. 

Source: Report: The impact of inward investment on the London housing market

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