Comment- How to slow down rising house prices

House prices in London are out of control. So much so that even the IMF have voiced their concerns, stating that this together with low productivity may have a substantial impact on the UK economy.

So what's the answer?

Maybe the more pertinent question is, so what's the cause?

The answer I believe is twofold. Firstly, many claim that foreign investors are hiking up prices by there desire to share in the boom of property ownership in London. Central London appears to be the location of choice for any self respecting overseas investor and this causes a ripple effect pushing up prices from the centre outwards.

The second reason may stem from the Government's 'Right to Buy Scheme', which allows first time buyers the opportunity to buy property with a much lower deposit than was previously required.

Okay, so what is the solution?

In regard to the foreign investors, I believe that there is a simple solution. Simply tax those purchasers whose residency lies outside the Britain. This would deter these investors, and any money raised by the scheme could be put straight into the building of affordable housing on brownfield sites in London.

The Right to Buy Scheme, although admirable in its intentions has failed. I would scrap it within London. 

In truth, something needs to be done to prevent the London housing market from overboiling again. And ultimately, whether you like it or loathe it, London must be treated as an entity in its own right- the sooner those in a position of power realise this the better!