London Mayor Boris Johnson warns UK should not 'slam the door' on super-rich foreigners

The London Mayor's remarks came after the Chancellor announced an "oligarch tax" in the Autumn Statement last year

London Mayor Boris Johnson has said it would be “utterly nuts” to “slam the door” on wealthy foreigners who buy property in the capital, after Chancellor George Osborne announced a so-called “oligarch tax”.

A sharp increase in property purchases from overseas buyers, particularly rich investors such as Russian oligarchs, has been blamed for spiralling housing prices in the capital.

Mr Osborne plans to impose the tax on the sale of homes by non-UK residents in an attempt to ease the capital’s strained housing market.

In a speech to the annual Mansion House London Government Dinner, Mr Johnson did not refer directly to the tax policy, but said: “I do not in any way want to deter international investment in our city. Quite the reverse: I want to encourage it.

"You can see astonishing transformations taking place in London thanks to international investment.

“We would be utterly nuts as a society if we did anything to turn that away.”

Mr Johnson also said he recognised there was a “desperate shortage of homes” in the capital - with up to 47,000 needing to be built a year to meet current demand.

New building projects should be “marketed first to Londoners”, he said, adding that foreign owners should either live in or rent out their properties to prevent properties being seen as “blocks of bullion in the sky”.

Mr Osborne confirmed in his Autumn Statement that non-UK residents would have to pay capital gains tax (CGT) on property sales from April 2015.

Mr Johnson criticised Lib Dem Business Secretary Vince Cable - a London MP - who warned recently that the capital was “becoming a giant suction machine draining the life out of the rest of the country”.

“I hope they take Vince down Crossrail. Not to entomb him there of course - perish the thought - but so he can see a project that will grow the UK economy by £63 billion, that is creating three fifths of its contracts outside London that is helping tens of thousands of people into jobs across the country,” the Mayor said.

One of those was a cable company “so old that they probably made Vince Cable himself,” he added.

Additional reporting by PA

Read more: David Cameron and Boris Johnson visit a Crossrail construction site  

Start your day with The Independent, sign up for daily news emails
Have you tried new the Independent Digital Edition apps?
ebooks
ebooksAn introduction to the ground rules of British democracy
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

Recruitment Genius: Business Analyst - 12 Month FTC - Entry Level

£23000 - £27000 per annum: Recruitment Genius: A Business Analyst is required ...

Recruitment Genius: Chefs - All Levels

£16000 - £23000 per annum: Recruitment Genius: To succeed, you will need to ha...

Recruitment Genius: Maintenance Engineer

£8 per hour: Recruitment Genius: This is an opportunity to join an award winni...

Recruitment Genius: Telesales Executive & Customer Service - Call Centre Jobs!

£7 - £9 per hour: Recruitment Genius: Are you outgoing? Do you want to work in...

Day In a Page

Isis in Syria: Influential tribal leaders hold secret talks with Western powers and Gulf states over possibility of mobilising against militants

Tribal gathering

Influential clans in Syria have held secret talks with Western powers and Gulf states over the possibility of mobilising against Isis. But they are determined not to be pitted against each other
Gaza, a year on from Operation Protective Edge: A growing population and a compromised and depleted aquifer leaves water in scarce supply for Palestinians

Gaza, a year on from Operation Protective Edge

A growing population and a compromised and depleted aquifer leaves water in scarce supply for Palestinians
Dozens of politicians, bureaucrats and businessmen linked to Indian bribery scandal die mysteriously

Illnesses, car crashes and suicides

Dozens of politicians, bureaucrats and businessmen linked to Indian bribery scandal die mysteriously
Srebrenica 20 years after the genocide: Why the survivors need closure

Bosnia's genocide, 20 years on

No-one is admitting where the bodies are buried - literally and metaphorically
How Comic-Con can make or break a movie: From Batman vs Superman to Star Wars: Episode VII

Power of the geek Gods

Each year at Comic-Con in San Diego, Hollywood bosses nervously present blockbusters to the hallowed crowd. It can make or break a movie
What do strawberries and cream have to do with tennis?

Perfect match

What do strawberries and cream have to do with tennis?
10 best trays

Get carried away with 10 best trays

Serve with ceremony on a tray chic carrier
Wimbledon 2015: Team Murray firing on all cylinders for SW19 title assault

Team Murray firing on all cylinders for title assault

Coaches Amélie Mauresmo and Jonas Bjorkman aiming to make Scot Wimbledon champion again
Wimbledon 2015: Nick Bollettieri - Vasek Pospisil must ignore tiredness and tell himself: I'm in the quarter-final, baby!

Nick Bollettieri's Wimbledon Files

Vasek Pospisil must ignore tiredness and tell himself: I'm in the quarter-final, baby!
Ashes 2015: Angus Fraser's top 10 moments from previous series'

Angus Fraser's top 10 Ashes moments

He played in five series against Australia and covered more as a newspaper correspondent. From Waugh to Warne and Hick to Headley, here are his highlights
Greece debt crisis: EU 'family' needs to forgive rather than punish an impoverished state

EU 'family' needs to forgive rather than punish an impoverished state

An outbreak of malaria in Greece four years ago helps us understand the crisis, says Robert Fisk
Gaza, a year on from Operation Protective Edge: The traumatised kibbutz on Israel's front line, still recovering from last summer's war with Hamas

Gaza, a year on from Operation Protective Edge

The traumatised kibbutz on Israel's front line, still recovering from last summer's war with Hamas
How to survive electrical storms: What are the chances of being hit by lightning?

Heavy weather

What are the chances of being hit by lightning?
World Bodypainting Festival 2015: Bizarre and brilliant photos celebrate 'the body as art'

World Bodypainting Festival 2015

Bizarre and brilliant photos celebrate 'the body as art'
alt-j: A private jet, a Mercury Prize and Latitude headliners

Don't call us nerds

Craig Mclean meets alt-j - the math-folk act who are flying high