Foreign investors in British real estate will face a higher tax burden Prime Minister Theresa May announced before the Conservative party conference in Birmingham on Sunday, September 30.
The government is said to be considering a 1-3% stamp duty, the traditional Conservative daily Sunday Telegraph reports. The objective will be to make the domestic market more affordable.
The announcement comes just as the Governor of the Bank of England, Mark Carney, warns that UK property could lose 35% of its value as a result of a disorderly Brexit.
The Labour Party has proposed an ambitious house-building program, although successive governments have failed to meet building targets.
Social housing programs were disrupted in the 1990s, with the government giving the “right to buy” to homeowners, reducing the scope for state intervention in the housing markets.
For more than thirty years, the UK property market is one of the most liquid markets in the world, particularly in London. Demand in England is strong given the rising population and insistence on extensive green zones.