London Mayor Sadiq Khan said London needs more transparency regarding the flow of offshore investment property in the United Kingdom. The investigation comes after the newest surge of money flowing from overseas may be due to potential money laundering activities by crime organisations.
The inquiry focuses on the building of affordable homes to luxury developments, the money used in these accounts and the potential origin of the money. According to Mr Khan, the foreign investment in building new London homes and improving real estate value was always welcome in the country.
“At the same time, as more and more Londoners struggle to get on the property ladder, there are real concerns about the prospect of a surge in the number of homes being bought by overseas investors,” he said.
“We urgently need more transparency around overseas money invested in London property.
“Londoners need reassuring that dirty money isn’t flooding into our property market, and ministers must now make all property ownership in London transparent so we can see exactly who owns what.”
According to the Guardian, a booming middle class in China is expected to quadruple the amount of money it pours into the UK annually to £150 billion over the next 10 years.
“It’s clear we need to better understand the different roles that overseas money plays in London’s housing market, the scale of what’s going on, and what action we can take to support development and help Londoners find a home,” Mr Khan said.
“That’s why we are commissioning the most thorough research on this matter ever undertaken in Britain – the biggest look of its kind at this issue – so we can figure out exactly what can be done.”