Several weeks ago a block of flats in Abbey Wood, a modest part of south east London, went up for sale. The development is convenient for the new Crossrail scheme, which would make commuting easy into Canary Wharf, the City or the West End.
Oh, and it is advertised as a “fully private block with no social housing” which means, to put it less politely, that occupiers are unlikely to have to rub shoulders much with the local plebs.
Neither you nor I can buy the flats, though, not without taking a flight to Hong Kong and the Mandarin Hotel there, which is where they are being marketed. They are not for Londoners; they are for rich overseas, probably Chinese, investors, who will use the scheme as a way of getting their money out of their slowing economy and into a bolt-hole in London.
The flats will be rented out, for an extortionate sum, to those same Londoners who are unable to buy them, and those rents will be yet another barrier to their getting their own feet on the housing ladder.
This is a proper free market in action. Or the inevitable result of globalisation. Or utter madness. I favour the last. We learn that London will grow to a city of ten million in due course, because of an influx of people from overseas, which will mean an even greater housing shortage, pushing prices even higher and ensuring even more of the local population will be priced out of the market. Already about a third of new build in the capital is for “investment”.
Meanwhile the pressure on services like schools, health and transport will increase.
People I speak to in the property world tell me that those overseas investors are now looking outside London, and outside residential property, for those bolt-holes to stash their wealth. We face the prospect of the sort of housing chaos that has afflicted London and the south east spreading to any other part of the country that is remotely habitable.
Anyone sane can see this cannot go on. The Tories seem unconcerned – indeed, Boris Johnson seems to regard the amount of foreign cash, much of it of dubious provenance, flooding to the capital as a source of pride. Labour and the LibDems’ main contribution to the debate is to fine people who already happen to live in houses above a certain size or which have risen in value because of the crazy London housing spiral. The money will not go to new social housing, but to the NHS, all part of the unending and boring bickering between the parties ahead of the election on the subject.
Other nations seem rather good at keeping their hands on essential assets and infrastructure – the French, for example. We sell off everything, railways, utilities, airports, whatever, to any old bunch of rich, greedy foreigners with no commitment to them or their customers and then wonder why those essential services don’t work that well.
I wonder how many votes there are in a policy of London for the Londoners, and everyone else gets to pay a whopping surcharge for the privilege of buying here?