Boris told not to interfere with London's housing market

Published by Max Salsbury for 24dash.com in Housing and also in Development, Local Government

Property chiefs have told the Mayor of London not to interfere with the capital's housing market.

The demand has come in response to the London Assembly's call to Boris Johnson to research the impact that overseas investment is having on the city's housing market.

He has now been asked to refrain from any interventions in the market that may unsettle investors and put new financing for homes at risk.

Scott Hammond, executive director at developer Essential Living, said: "Policy makers rightfully want to encourage new housing investment but it’s vital we refrain from tampering with the market as this provokes uncertainty which is a huge barrier for large funds and institutional investors.

"Councils already have the power to determine what gets built in the area and we would suggest that a greater focus needs to be given to private rented homes to cater for the needs of professional Londoners and families."

The Assembly also called on the Mayor to examine the extent to which properties owned by foreign investors are kept empty or unused.

John Hitchcox, the London entrepreneur who founded Yoo, the luxury housing firm, with Philippe Starck, said: “We all want vibrant communities where everyone has access to homes but the current witch-hunt against prime housing, through sky high stamp duty and moves to block foreign buyers makes no sense.

"Many high value buyers from abroad bring huge amounts of business with them and contribute hugely to the fabric of London. It makes no sense to determine who can buy a home based on where they originate from.”