Keith Downing says West Bromwich Albion will be forced to pay inflated prices in order to sign English talents such as Matt Phillips.
Albion are interested in signing QPR winger Phillips but a deal has not come to fruition as of yet due to the Hoops' £10million valuation of the 24-year old.
Former Baggies boss Downing has sympathized with West Brom but stated that the West Midlands side will simply have to pay up as the prices of homegrown talent is inflated during the current climate of the market.
Downing told the Birmingham Mail: "It's the way of things right now where if you want British players you are having to pay inflated prices and I'm not sure how that can change.
"Albion always had plenty of targets but getting them in was sometimes a difficulty. Jeremy Peace's strength was his conservatism in what he was prepared to spend. The club never tried to over-spend which is why it was always so well run."