International capital flows into London property

London has seen dramatic social and economic changes over the past decade, notably the increasing concentration of super-rich individuals and international investors buying property in the city. The influx of investment has been presented by some as a sign of the capital's success and a vote of confidence in the UK's stability, the financial system and London's cultural offering. Yet, these changes have also heralded a greater focus on the impact this wealth is having on London at a time when inequality is rising, and whilst those on low and moderate incomes are experiencing the effects of austerity, budget cuts and a general lack of affordable
housing. Significant concerns have also been raised about the role of investment by the super-rich in reducing housing availability, the way in which investors often barely use the housing resources they purchase, and the extent to which money is being laundered through the property system.

This new SPERI Global Political Economy Brief assesses the relationship between international flows of capital into London's property market and the social impact on London and its neighbourhoods. It presents research findings from a project funded by the Economic and Social Research Council which involved using various data sources including property databases, census data and interviews with the super-rich in London and Hong Kong over a two-year period. It concludes by making a series of policy recommendations that could be implemented to address the city's housing crisis and the social impact of international flows of capital into London.