05/09/2016

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:00:00. > :00:09.I'm Matthew Wright and welcome to a new series of Inside Out London.

:00:10. > :00:14.The big story over the summdr was our vote to leave

:00:15. > :00:19.And with the Prime Minister insisting that Brexit means Brexit,

:00:20. > :00:23.we ask, what does it all mean for London?

:00:24. > :00:24.As foreign investors take advantage of our

:00:25. > :00:26.falling pound, is Brexit helping or hindering

:00:27. > :00:34.Is there going to be a crash? Is the bubble going to burst?

:00:35. > :00:37.That depends so much on what happens politically over the next

:00:38. > :00:40.Right now, would I buy? I would rent.

:00:41. > :00:47.We meet the immigrants who no longer feel at home in the capital.

:00:48. > :00:49.They had no right to talk to me like that.

:00:50. > :01:02.You feel unappreciated, likd your contribution means nothing.

:01:03. > :01:04.And we send comedian Paul Chowdhry to

:01:05. > :01:07.discover what it would take for London to go it alone.

:01:08. > :01:09.By the end of this film, Dotmaster here is going

:01:10. > :01:12.to reveal our own London fl`g, we have a new football team

:01:13. > :01:28.and an anthem for what could become the greatest city state on Darth.

:01:29. > :01:31.One sector which has alreadx been affected by Brexit

:01:32. > :01:37.The devalued pound has triggered a spending spree

:01:38. > :01:40.by overseas investors, but these foreign buyers are no longer

:01:41. > :01:42.just targeting prime central locations.

:01:43. > :01:45.Changes to stamp duty mean they are also interested

:01:46. > :01:48.in cheaper properties, pitting them head-to-head

:01:49. > :02:00.For several years now, I have been reporting on the frenzied

:02:01. > :02:03.London property market. Those driven out...

:02:04. > :02:06.Oh, it is tough for the buydrs. We do feel sorry for them.

:02:07. > :02:09.London sometimes looks like a bargain.

:02:10. > :02:16.One bank warns that house prices could half if Brexit goes wrong

:02:17. > :02:27.A year ago, I met junior doctor and first-time buyer, Tanya.

:02:28. > :02:35.She even considered buying this repossessed cannabis farm.

:02:36. > :02:38.I do not think we could acttally move in when it is like this.

:02:39. > :02:44.She is still looking. Today, Cemetery Road.

:02:45. > :02:48.Brexit has just brought so much uncertainty.

:02:49. > :02:52.I do not want to be putting my life savings in and carry a big

:02:53. > :02:54.mortgage, when I do not know what is happening.

:02:55. > :02:56.My worst fear would be that this place

:02:57. > :03:01.We get these buyers, these first-time buyers, who will not buy.

:03:02. > :03:10.We just cannot believe it and it is all because of Brdxit

:03:11. > :03:13.London's first-time buyers `re a bit like poor old Goldilocks.

:03:14. > :03:15.When the market is too hot, they cannot keep up.

:03:16. > :03:17.But when it is too cool, they get scared.

:03:18. > :03:26.The market was on a slide bdfore. It was slipping down, but slowly.

:03:27. > :03:28.Brexit just gave it a bit of a shove.

:03:29. > :03:31.What we have seen from our data is that, in the new properthes

:03:32. > :03:35.in London, sales have pretty much halved.

:03:36. > :03:38.That uncertainty has led to price falls.

:03:39. > :03:40.While first-time buyers get the jitters, seasoned property

:03:41. > :03:49.Since the referendum on Jund 24 I have negotiated about

:03:50. > :03:52.?56 million worth of property transactions.

:03:53. > :03:54.On average, I have negotiatdd a 12% discount to the

:03:55. > :04:00.By Christmas, Henry believes the average London home

:04:01. > :04:06.will be worth ?30,000 less than its pre-Brexit price.

:04:07. > :04:09.In my opinion, of 32 years of buying houses and selling propertids,

:04:10. > :04:13.I do not think you have ever had a better time to buy a propdrty

:04:14. > :04:21.One of the great hopes of Brexit was that it would make propdrty

:04:22. > :04:29.Brexit jitters means the potnd against the dollar dollar

:04:30. > :04:31.is now worth 17% less than it was a year ago.

:04:32. > :04:33.Global estate agents, John Taylor, have witnessed

:04:34. > :04:45.I had the team in here count all the enquiries in the

:04:46. > :04:49.comparing it with the enquiries from the month before the vote.

:04:50. > :04:57.Over 80% of them had international dial phone nulbers

:04:58. > :05:04.As of today, we have 80% sold out in the development.

:05:05. > :05:05.Selling fast in Colindale, zone four.

:05:06. > :05:07.These Hong Kongers eye up new investments.

:05:08. > :05:11.So, this is our master bedroom, with ensuite.

:05:12. > :05:13.They are delighted that the low pound has knocked

:05:14. > :05:22.This country has a secure and stable property system.

:05:23. > :05:27.And, yes, it attracts foreign investors to come here, likd me

:05:28. > :05:30.And 15% off? It is like the sales!

:05:31. > :05:37.The London market is selling on to foreigners, not to the Englhsh.

:05:38. > :05:39.The English continue to sit on their hands and say,

:05:40. > :05:42."We do not think this is a good time to trade."

:05:43. > :05:44.I am getting investors who are buying flats

:05:45. > :05:55.70% of sales in this Fairfidld development are first-time buyers,

:05:56. > :05:57.but for tax reasons, many foreign investors now

:05:58. > :05:59.deliberately compete for thdse cheaper outer zone homes

:06:00. > :06:01.rather than prime locations hit by higher stamp duty

:06:02. > :06:12.We had a lot of investors who would want to invest

:06:13. > :06:16.They would come in and buy a flat which would give

:06:17. > :06:22.Now, they arecoming in and buying thre of four smaller apartmdnts

:06:23. > :06:28.If an investor buys one tinx little flat in Mayfair, for ?1.5 mhllion,

:06:29. > :06:37.But, if instead, he buys six flats, costing ?250,000 each,

:06:38. > :06:42.somewhere cheaper in London, his total tax will only be ?60, 00.

:06:43. > :06:50.They have more than halved their tax bill.

:06:51. > :07:04.The public and London's mayor are critical of foreign invdstors

:07:05. > :07:08.but developers say they are keeping the market afloat,

:07:09. > :07:09.amidst Brexit uncertainty. If that sinks, so does

:07:10. > :07:11.all the affordable housing tagged on by councils.

:07:12. > :07:15.Because in the UK, and in London in particular, they play a

:07:16. > :07:19.very vital role in underpinning development.

:07:20. > :07:24.Of course, the uplift in purchases coming from

:07:25. > :07:27.abroad in no way make up for the fall in the number of English

:07:28. > :07:29.purchasers that we have seen in the market.

:07:30. > :07:32.So, increased tax and Brexit jitters have led to some spectacular

:07:33. > :07:35.reductions at the top end of the market.

:07:36. > :07:38.On June 15, a two-bed flat `t Battersea Power Station was on sale

:07:39. > :07:44.Today, it is on offer for ?1.15 million.

:07:45. > :07:54.So, can London sustain its luxury building boom?

:07:55. > :07:57.Two and a half years ago, London Residential Research gave me

:07:58. > :07:59.this warrning on the necklace of luxury developments

:08:00. > :08:05.We reckon this has all the hallmarks of a bubble.

:08:06. > :08:08.The research tells me that this bubble has maybe two and a half

:08:09. > :08:14.So, two and a half years on, plus Brexit.

:08:15. > :08:20.That depends so much on what happens politically in

:08:21. > :08:23.It is impossible to say, without seeing that

:08:24. > :08:34.But investor Henry Pryor is still buying post-Brexit,

:08:35. > :08:37.but warns that luxury new builds are taking a hit.

:08:38. > :08:40.Brexit has been, for them, a nightmare.

:08:41. > :08:42.There are 59,000 new properties either with planning consent

:08:43. > :08:48.But in central London, only 4,000 are sold every ydar.

:08:49. > :08:52.I think we have some signifhcant challenges and I regard

:08:53. > :08:56.This is not an investment, when it comes to buying

:08:57. > :09:00.these properties, it is speculation.

:09:01. > :09:02.I would not touch these new-builds, I am afraid,

:09:03. > :09:07.Two years ago, in Hong Kong, I witnessed Neil Jensen

:09:08. > :09:10.selling a yet-to-be built tower block in Stratford.

:09:11. > :09:12.There are not many left now, at all, are there?

:09:13. > :09:16.It is still not finished, but some of the investors whll

:09:17. > :09:21.already have sold on, with a 40% profit.

:09:22. > :09:26.Today, he is eyeing up another London development for his

:09:27. > :09:34.All the things that were sahd, they have not happened

:09:35. > :09:38.It sounds like you have had enough of people talking

:09:39. > :09:40.about bubbles about to burst in London?

:09:41. > :09:43.Mark, some day, somebody is going to be right

:09:44. > :09:48.and the market will drop by 5-1 %. It is a blip.

:09:49. > :09:50.You may find somebody sitting there saying, "I told you so."

:09:51. > :09:53.But really, over five years, ten years, 15 years,

:09:54. > :10:03.there are no fundamental re`sons as to why the market would crash.

:10:04. > :10:09.The Brexit effect, the talk of every London street.

:10:10. > :10:15.What is your main fear, your biggest fear at the molent

:10:16. > :10:20.That it is going to go into negative equity and I will need to move.

:10:21. > :10:23.A London home, the biggest thing most of us will ever buy.

:10:24. > :10:25.For Tanya in Cemetery Road, and many beyond, Brexit

:10:26. > :10:43.About half the nations in the world would have a smaller

:10:44. > :10:47.We would be exactly at that midpoint.

:10:48. > :10:51.we would be up there in the top 30 economies in the world.

:10:52. > :11:00.In the days following the referendum result, the

:11:01. > :11:03.number of race-hate crimes reported in the capital rocketed by lore than

:11:04. > :11:07.Post Brexit, Scotland Yard is dealing with up to 78

:11:08. > :11:14.incidents of this kind everx single day.

:11:15. > :11:16.No wonder many Londoners feel their home has become ` more

:11:17. > :11:21.There are even fears that r`ce relations in the capital have

:11:22. > :11:28.They had no right to talk to me like that.

:11:29. > :11:40.This is the place where I h`ve set up with my family, but after the

:11:41. > :11:43.Brexit vote, I will definitdly move from the area that I live.

:11:44. > :11:46.We are aware of people who `re considering moving, to seek safety.

:11:47. > :11:51.The only thing we can do is not to go back.

:11:52. > :11:55.The number 29 bus on a Saturday night.

:11:56. > :11:57.Captured on mobile phone, one woman's rant

:11:58. > :12:12.Following the European Union referendum, some people say such

:12:13. > :12:15.scenes are becoming more colmon in London,

:12:16. > :12:18.indicative of a place where hostility and hate are on the rise,

:12:19. > :12:30.One month ago, Urzabek was living in Camden,

:12:31. > :12:32.working as a relocation consultant for some of London's top London s

:12:33. > :12:43.But today, she is setting up home in Budapest.

:12:44. > :12:47.The sounds and the smells. And all the different cultures.

:12:48. > :12:57.We want to be able to contrhbute and enjoy and hopefully

:12:58. > :13:00.give enjoyment and be a useful citizen and, as an immigrant, I

:13:01. > :13:10.But her sense of belonging to London began to disintegrate just days

:13:11. > :13:20.We went to an apartment and it was in a nice

:13:21. > :13:23.We noticed that someone was there during the night,

:13:24. > :13:29.They came in, charged the phone urinated in the hallway.

:13:30. > :13:31.We asked them really nicely if they would leave.

:13:32. > :13:40.They said, "You Romanians, you immigrants,

:13:41. > :13:44.After they finally left, she called the police

:13:45. > :13:47.and had the lock repaired, but the very next day, the hntruders

:13:48. > :13:53.We asked them to leave again, but we were not going to get

:13:54. > :13:57.We did not want to get into anything physical.

:13:58. > :13:58.The abuse started, "You immigrants", etc.

:13:59. > :14:03."You should go home now." And the guy actually hit me.

:14:04. > :14:05.He hit my arm. He actually bruised my arm.

:14:06. > :14:10.I am a normal citizen and I could not believe

:14:11. > :14:24.Take back control of huge sums of money.

:14:25. > :14:27.She believes those who abusdd her were inspired by the

:14:28. > :14:29.anti-immigration tone of thd Leave campaign during the European Union

:14:30. > :14:36.Being personally the victim of such hostility,

:14:37. > :14:39.Suddenly, you feel you are not wanted.

:14:40. > :14:42.You feel unappreciated, likd your contribution means nothing.

:14:43. > :14:43.It is an almost indirect way of getting

:14:44. > :14:48.I think, I did not want to go back to the UK any more.

:14:49. > :14:57.So, we are getting on and we do not look back.

:14:58. > :14:59.Post-Brexit tensions around immigration and race in our capital

:15:00. > :15:03.are having a very real impact on people's sense of safety.

:15:04. > :15:05.So much so, community support groups claim

:15:06. > :15:07.increasing number of immigr`nts are planning to leave

:15:08. > :15:15.The East European Centre in Hammersmith says that

:15:16. > :15:17.others are seeking safety in numbers,

:15:18. > :15:41.The whole context of the European Union vote has been difficult for

:15:42. > :15:43.migrants. From our work, we are aware that

:15:44. > :15:46.people are considering moving from one borough to another,

:15:47. > :15:48.seeking safety, quite frankly. They are looking for

:15:49. > :15:50.boroughs that have a higher proportion of people

:15:51. > :15:52.from their own community. That would make them feel s`fer

:15:53. > :15:55.More importantly, bring thel closer to some support networks

:15:56. > :16:02.that may be in place. The Metropolitan Police

:16:03. > :16:04.say such attacks have fallen back to pre-Brexit

:16:05. > :16:06.levels, but many Eastern Europeans say that does not reflect their own

:16:07. > :16:10.experiences and reality. Ten days ago, a 39-year-old

:16:11. > :16:12.Pole, Arkadiusz Jozwik, Police say one line of enquhry

:16:13. > :16:22.is that this could be a hatd crime. I think since the European Tnion

:16:23. > :16:25.referendum, there has been ` high It continues to be a fairly high

:16:26. > :16:32.level of racial incidents. Quite frankly, I think it m`y be

:16:33. > :16:36.growing, because we know of four men This is the level of

:16:37. > :16:43.severity we are looking at. We are very sensitive

:16:44. > :16:45.to communities, understanding the environment, seeing

:16:46. > :16:46.what is reported reported So, we understood that our

:16:47. > :16:56.Eastern European communites were feeling more targeted `nd more

:16:57. > :16:59.fearful and that is why, quite necessarily, we put ftrther

:17:00. > :17:02.focus in these areas. Some people are leaving

:17:03. > :17:04.because they perceive London to be Across the capital,

:17:05. > :17:09.there are immigrants who sax they feel trapped on neighbourhoods

:17:10. > :17:12.and estates where post-Brexht Coming in to my mind, I thotght

:17:13. > :17:24.they are probably going to hit me. The expressions on their faces were

:17:25. > :17:26.really angry. Originally from Spain,

:17:27. > :17:33.Nancy has lived happily on this south London estate with her husband

:17:34. > :17:35.and children But since the European Union

:17:36. > :17:40.referendum, she has been living in fear,

:17:41. > :17:43.after being cornered by thrde men, As soon as they were in

:17:44. > :17:53.front of me, they just They were saying really

:17:54. > :17:58.ugly words to me. It is something that

:17:59. > :18:05.you feel in your heart... I am going to start to cry,

:18:06. > :18:13.because it is not fair. Nancy now leaves home

:18:14. > :18:16.only if it is absolutely necessary. Her anxiety about a repeat `ttack

:18:17. > :18:19.is causing her to be They have to understand

:18:20. > :18:26.what is happening and that what is I know really good English people

:18:27. > :18:40.who are great people, but if incidents like this still

:18:41. > :18:43.happen to me or my family, H will definitely move from

:18:44. > :18:50.the area we live in. From the mother who has barricaded

:18:51. > :18:52.herself in her own home, to the professionals who have moved

:18:53. > :18:58.abroad, Brexit has exposed divisions in our communities that havd

:18:59. > :19:02.yet to be resolved. In terms of leaving London,

:19:03. > :19:05.that is a sign of giving in. And we will not give in to `ny

:19:06. > :19:09.extremism or any type of hatred As far as us leaving

:19:10. > :19:11.and other people, I think It is not as desirable

:19:12. > :19:19.a place any more. Now, I am an optimist,

:19:20. > :19:29.so I wish the UK all the best. Brexit may have been the nation s

:19:30. > :19:33.preferred choice at the refdrendum, In fact, over 60%

:19:34. > :19:36.of voters here chose That has led to talk of the capital

:19:37. > :19:44.striking out on its own. But what might an independent

:19:45. > :19:46.state of London We sent comedian Paul

:19:47. > :19:53.Chaudhry to find out. MUSIC: London Bridge

:19:54. > :19:58.Is Falling Down. Just after the war, the classic

:19:59. > :20:00.film, Passport To Pimlico, joked about plucky Londoners

:20:01. > :20:02.declaring independence. They had already mastered

:20:03. > :20:07.the Brexit lingo. We naturally have to enforcd

:20:08. > :20:10.the immigration laws. You can't have the one

:20:11. > :20:13.without the other. Can't allow tourists

:20:14. > :20:17.in without the usual formalhties. The British people have spoken

:20:18. > :20:25.and the answer is, we are ott. London was the only English region

:20:26. > :20:28.which voted to stay within This great city raises almost one

:20:29. > :20:35.third of all United Kingdom tax ?1 in every ?5 earned by Londoners

:20:36. > :20:38.subsidises the rest of the country. I do not know about you,

:20:39. > :20:43.but in my household, the biggest earner calls

:20:44. > :20:45.all the shots. Dad brought home the cash,

:20:46. > :20:47.Dad bought the TV. "When I want to watch

:20:48. > :20:49.the Liverpool game, I will watch "the bloody Liverpool

:20:50. > :20:52.game, you got it?" So, is it time for

:20:53. > :20:56.Londoners to go it alone? You are listening

:20:57. > :20:57.to BBC Radio London. We are trying to find

:20:58. > :21:00.an anthem for London. What would you be

:21:01. > :21:02.happy to stand on the This is one of the contenders,

:21:03. > :21:08.definitely, London By the end of this film,

:21:09. > :21:16.Dotmaster here is going to reveal our own London fl`g,

:21:17. > :21:19.we have a national football team and an anthem for what could become

:21:20. > :21:22.the greatest city state on Darth. Even London's mayor

:21:23. > :21:42.has got involved. As much as I like the idea, you will

:21:43. > :22:17.be pleased to know I am not planning checkpoints, barbed wire. L`st time

:22:18. > :22:25.I checked, it was about 180,000 He has started the petition for London

:22:26. > :22:31.independence. So far, it has been successful, but he started ht as

:22:32. > :22:36.something as a joke. Some experts did not say whether it would be a

:22:37. > :22:48.good bad idea. There would be great devil tuition for London. Another

:22:49. > :22:55.song which has been suggestdd. Our London movement is beginning to

:22:56. > :23:04.grow. Castrol started the rdvolution in Cuba. I work revolution could

:23:05. > :23:08.start in Cricklewood. Ken Livingstone Was our first elected

:23:09. > :23:36.mayor. If we were to go it alone, we would

:23:37. > :23:40.be about bigger than half of the warrant populations. We would be in

:23:41. > :23:50.the middle. In terms of the economy, we would be in one of the top 3

:23:51. > :23:58.economies in the world. We have got more immigrants than anywhere else,

:23:59. > :24:04.that was simply not a factor before. It has been a huge boost to our

:24:05. > :24:10.economy. Did you ever dream of becoming president of an independent

:24:11. > :24:19.London? I do, but the rest of the country mate duffer. Memo to self,

:24:20. > :24:32.he needs more persuading. Also, check out the defences, find out

:24:33. > :24:38.when HMS Belfast last fired a gun in anger. But we are surrounded. Every

:24:39. > :24:44.other region within England voted to leave the European Union. So, I

:24:45. > :24:57.picked it out and gauged sole opinion. Ridiculous. I would be very

:24:58. > :25:01.sad. The might fight to keepers but some economists think we should be

:25:02. > :25:10.allowed to issue our own London headlines. If you look over at

:25:11. > :25:16.Canada, they do not have a set immigration policy. Every state

:25:17. > :25:20.within it makes up the road. Perhaps we could have a situation wd in the

:25:21. > :25:27.London authorities locate your national insurance number. Hf some

:25:28. > :25:31.parts of the United Kingdom did not make it easy to be living and

:25:32. > :25:37.working there, that could bd very strict about what national hnsurance

:25:38. > :25:47.numbers they let in. We are going to need plenty of these visas. Tonight,

:25:48. > :25:54.all eyes will be on Wembley as the new National London squad t`kes to

:25:55. > :25:57.the pitch. England against London. The New London manager David Beckham

:25:58. > :26:06.says it will be emotional when they play as guests at Wembley. We are

:26:07. > :26:11.going to need a bit of Scottish coaching. Why is it when Scottish

:26:12. > :26:14.people talk about independence, everyone listens, but no ond takes

:26:15. > :26:26.it seriously when London talk about it. I am not sure. There is the

:26:27. > :26:39.progression. London subsidises the rest of the country. It sucks the

:26:40. > :26:40.life blood, like a evil vampire Back in London, it is time to reveal

:26:41. > :27:00.the new flight. So, you have used aspects of what we

:27:01. > :27:09.already have. The skyline. Ht is a London thing. But have we got the

:27:10. > :27:16.anthem? I do not think therd is any big surprise. Some people h`ve said

:27:17. > :27:30.you have to be proud to be ` Londoner. It is Waterloo Sunset If

:27:31. > :27:39.we cannot be independent, wd will have to be modest. MUSIC: W`terloo

:27:40. > :27:55.Sunset. Very amusing. Waterloo Sunsdt Is an

:27:56. > :28:01.anthem, but I would still h`ve gone from the Clash. This is what is

:28:02. > :28:09.coming up next week. I want to ask about your money laundering schemes.

:28:10. > :28:17.We expose the gangs using students to launder dirty money. I al the one

:28:18. > :28:23.who has been punished. Caught in a web of bureaucracy. We reve`l how

:28:24. > :28:30.prisoners are being left to rot The system is not working. It is simply

:28:31. > :28:36.unacceptable. And how bees `re producing some of the best honey in

:28:37. > :28:42.the country. It is very intdresting in its flavour. It is very different

:28:43. > :28:50.from that around the countrx. That is all from this week. If you miss

:28:51. > :28:56.anything, you can catch up on the iPlayer. Thank you very much for

:28:57. > :29:04.watching. See you again next week. Hello, I'm Riz Lateef,

:29:05. > :29:06.with your 90-second update. The Prime Minister has ruled out

:29:07. > :29:08.a points-based system Theresa May said it wouldn't control

:29:09. > :29:12.numbers coming in. It was one of the key promises

:29:13. > :29:14.of Leave campaigners New figures on Britain's

:29:15. > :29:19.services industry suggests The sector's bounced back

:29:20. > :29:23.from the seven-year low it recorded Junior doctors in England h`ve

:29:24. > :29:29.called off their strike planned for next week after worries

:29:30. > :29:31.about patient safety. Their union says more walk-outs

:29:32. > :29:36.planned for later this year