What it should do is give the UK government more control over if they want to make it more or less attractive. Which way they actually turn that lever if it comes down to it is very much an open question, and probably dependent on the results from the next election. Personally I'm not convinced the government would want to force out all that foreign capital and they may even be tempted to try to attract more.

Ultimately, the UK economy is very dependent on the housing bubble that has built up over the last decade.

Governments will be forced to do everything they can to keep it inflated, as if it pops, then the damage to the UK economy will be immeasurable.

I think it's a when, not an if. The only way to avoid a housing pop is to not blow a housing bubble, and it's a little late for that.

Yes, it'll cause pain. The longer they keep kicking the can down the road, the more people get sucked into buying at comically inflated prices on the assumption of ZIRP+HPI forever, the more painful it'll be. And the politics are slowly but surely changing, as the shut-out shift from an easily-ignorable minority to a near-majority.