In a speech to the Conservative Party conference, the prime minister, Theresa May, has floated proposals for an SDLT surcharge of 1% or 3% for foreign buyers of UK property. Precise details are to be set out later in a consultation.
The Conservatives say the surcharge ‘could raise up to £120m’, which will be used to help people who are sleeping rough. The thinking behind the proposal is that non-resident buyers drive up house prices, making housing less affordable for ‘ordinary people’.
The Party cites research from York University which estimated that 13% of new London homes were bought by non-residents between 2014 and 2016. According to a study by King’s College London, each 1% increase in the volume of homes being sold to overseas companies led to a 2.1% increase in house prices.
The prime minister said: ‘it cannot be right’ that buying homes is as easy for individuals who don’t live in the UK, as well as for foreign-based companies, as it is for ‘hardworking British residents’.
The government is to consult on the detail of the proposal. No indication has been given of when the new surcharge might be introduced.
In a speech to the Conservative Party conference, the prime minister, Theresa May, has floated proposals for an SDLT surcharge of 1% or 3% for foreign buyers of UK property. Precise details are to be set out later in a consultation.
The Conservatives say the surcharge ‘could raise up to £120m’, which will be used to help people who are sleeping rough. The thinking behind the proposal is that non-resident buyers drive up house prices, making housing less affordable for ‘ordinary people’.
The Party cites research from York University which estimated that 13% of new London homes were bought by non-residents between 2014 and 2016. According to a study by King’s College London, each 1% increase in the volume of homes being sold to overseas companies led to a 2.1% increase in house prices.
The prime minister said: ‘it cannot be right’ that buying homes is as easy for individuals who don’t live in the UK, as well as for foreign-based companies, as it is for ‘hardworking British residents’.
The government is to consult on the detail of the proposal. No indication has been given of when the new surcharge might be introduced.
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