Property News · October 4, 2016

Don’t blame foreign investors – the roots of the housing crisis lie closer to home | David Madden


Sadiq Khan’s investigation into the London property market is a distraction. The housing bubble has been created by the actions of British politiciansIn a city where super-prime properties and tenant evictions are both on the rise, the housing system is broken and many residents are looking for someone to blame. For Londoners, rent consumes nearly two-thirds of the typical tenant’s income, and it will take 46 years for the average single person to save for a deposit on their first home. With overseas buyers acquiring as much as three-quarters of all new-build housing in London in recent years, it is understandable that foreigners would be cast as the villains behind the housing crisis. As a result, the London mayor Sadiq Khan last week launched an inquiry into foreign investment in the city’s housing market.Londoners are not alone in questioning the impact of global investors in local housing markets. The issue is being politicised in cities throughout the world. In Vancouver, Canada, where single-family homes cost around 21 times the region’s median income, the city introduced a 15% tax on non-resident foreign property owners this August. Australian states that encompass Sydney, Melbourne, and other cities have also introduced or raised taxes on house purchases by foreigners. Continue reading…

Source : theguardian.com
Read more…Don’t blame foreign investors – the roots of the housing crisis lie closer to home | David Madden

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