London may regulate foreigners buying property   

(ECNS) -- As demand from wealthy foreign buyers, especially those from China and Russia, for London homes is fueling property prices, the London government is mulling measures to control the trend, according to UK's Chinese-language Chinese Business Gazette.

London is facing an unprecedented surge in the number of Chinese and Russian home buyers, according to industry insiders.

The transaction number of houses purchased by Chinese and Russian has been rising every month. Housing prices in London have been on the increase accordingly.

Official statistics showed that the average housing price in London's Westminster hit a five-year high in July. The skyrocketing home prices fueled by foreign buys are out of reach for many local people in London.

Some experts are warning authorities to evaluate the impact of property sales to foreigners on London's housing market.

In August, under the commission of Westminster government, real estate agency Knight Frank started examining how investments by foreign home buyers had changed the dynamics of the market.

The survey is expected to be released on October, based on which, authorities will come up with measures this year to control the home purchasing trend by foreigners in London.

Some officials suggest posing higher taxes on properties purchased by foreign buyers, while others suggest government pose restrictions on foreigners' home buying activities based on their time in London.

Foreign buyers have purchased 60 percent of the property available in central London in the past few years.