CBRE has today issued its response to the Liberal Democrats’ proposal of preventing overseas investors from buying second homes in central London boroughs.
Jennet Siebrits, Head of Residential Research, CBRE, said: “London is one of the few bright spots in the UK housing market because it has been supported by interest from overseas investors. There is a misconception that these overseas buyers are creating ghost towns in central London. While central London is a popular second home destination, overseas investors also buy properties for their children to live in or as traditional rental investments which provides homes for London’s large renting population.
“The housing market is still in a fragile stage of recovery, so we should be encouraging all forms of investment. A staggering £1.1 billion was invested in London residential property from south-east Asia alone last year and this trend has continued in 2012. Cutting off this vital investment will have significant ramifications for the housing industry and for the wider economy. It will not remedy the shortfall of housing stock or enable ordinary Londoners to purchase their first home.”