Foreign investment

This destruction of the housing stock by rich foreign owners is the sort of consequence the free traders never factor into their “it’s good for the economy” arguments when considering the free flow of capital:

Drained whirlpools, decaying walls and foliage creeping up the stairs can be seen on a North London street called Billionaires’ Row. Bishops Avenue in Hampstead, north London, is one of the most exclusive roads in the country, but many of its 66 mansions lie vacant. Footage taken by ‘urban explorers’ shows moss growing up the once pristine white walls of the huge rooms and swimming pools with a shallow layer of murky water. The gardens rise high and in many the decor is clearly a few decades behind.

They include a selection of residences worth £73 million, reportedly bought for the Saudi royals between 1989 and 1993. In those days the homes caught be purchased for a cool million, now prices rise to around £20 million. In 2014, an estimated £350 million worth of mansions could be found on the prestigious street, the Guardian reported.

An Iranian resident told the paper: ‘Ninety-five percent of the people who live here don’t actually live here. It is a terrible place to live really.

So, the best housing stock in the most desirable areas is being destroyed, but on the plus side, the natives can’t afford to live there anyway. And the cycle will only continue as new developments are built to house the people who now live elsewhere and are building up a desirable neighborhoods that will attract more foreign “investors”.