Faulty Towers

Faulty Towers

Understanding the impact of overseas corruption on the London property market

Still under construction – link to document works tho

The London property market is highly vulnerable to corrupt wealth flowing into it. Analysis of open source material found over £4.2 billion worth of properties bought with suspicious wealth. Read more on page 9

Corruption causes high levels of instability abroad leading to ‘crisis capital’ being placed in safe havens like London. Since 2006 around £100 billion of hidden inflows have entered the UK. Read more on page 25

House prices are affected as illicit wealth and crisis capital entering the UK increase demand in the London housing market, particularly at the top-end; “the ripple effects they generate resonate across London” Read more on page 33

New build developments are built targeting wealthy international investors and are not meeting demand for affordable homes. In 14 landmark London developments almost 40 per cent of future homes were bought by those from high corruption risk jurisdictions. Read more on page 37

London’s role as a global safe haven is resulting in an underuse of housing stock. Areas with higher levels of property owned by anonymous companies also have high levels of abnormally low electricity usage; an indicator for empty or underused homes. Read more on page 51

Young people are moving out of London in record numbers due to the cost of housing. Over half of Londoners responding to our survey said wealthy overseas investors are causing house prices to rise and more than 1 in 5 believed money laundering was a motivating factor for overseas investment. Read more on page 53

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