Government’s Plans to Curb Foreign Investment in London Property ‘Xenophobic’
Government ministers have been accused of sending “an outdated, xenophobic message” by considering restrictions on foreign investors in London’s property market.
London Central Portfolio (LCP), a financial services firm for property investors in the capital’s most expensive areas, launched the attack after claiming that plans to clamp down on foreign investment could cost the economy as much as £5.6bn (€6.5bn, $8.6bn) and the loss of 28,000 jobs.
LCP claims proposals to only allow UK domiciles to buy properties in London’s new developments, or at least give locals the first chance to buy them ahead of foreign investors, would send prices crashing in an “unthinkable” economic fallout.
“The price of older properties would also have to take a haircut to remain competitive with new-builds,” said Naomi Heaton, chief executive of LCP.
“In a repeat of the 1980s crash, this would result in widespread negative equity with devastating consequences when base rates inevitably increase.”