UK tenants location

Stamp duty for overseas investors ‘should be shelved’

A proposed new stamp duty for overseas investors should not go ahead, Chancellor Philip Hammond is being advised.

Hammond’s most recent Budget, last October, featured a plan for a levy of between 1% and 3% on property purchases by foreign buyers. Prime Minister Theresa May told the BBC that the money raised would be put towards combating rough sleeping.

However London Central Portfolio, a property investment and advisory firm, have analysed the latest stamp duty returns and want the Chancellor to rethink the strategy.

“With the housing market in such a parlous state, it can only be hoped that Chancellor Philip Hammond will not implement an additional levy of 1% on non-residential purchasers, proposed in the last Budget” said LCP chief executive Naomi Heaton.

“This would seem to be particularly imprudent in light of the UK’s need to build on global investment as it exits the EU.”

Huge surge in overseas interest in NW England

Whether the introduction of this tax for foreign investors would affect the rapidly growing interest in the property market in the north-west of England is uncertain. Direct, non-stop flights linking Manchester with Mumbai, Beijing and Hong Kong are just one reason why the area is a focus for money from overseas.

Research from Juwai.com last year showed that interest in the region from China was 200% up on 2017, with their report claiming that the UK’s long-term outlook and economy were attractive despite the spectre of Brexit. Growing numbers of international students in Manchester and Liverpool are also attracting potential long-term investors.

“Foreign investors represent a significant proportion of buyers, particularly in new build developments,” Heaton adds. “The December LCPAca Residential Index recorded a 20.8% premium in Greater London for new build versus older stock.

Brexit roadmap required

“With developers currently struggling and scaling back projects, this new tax would not be welcome as the higher end stock enables developers to build out much needed affordable housing. It is also unlikely to have a material impact on tax revenues, given the recent trend of falling receipts, alongside steadily rising tax rates.

“HMRC’s 2018 stamp duty statistics do not paint a rosy picture of the UK housing market, with neither the buyer nor the Exchequer winning out. Until the government has a clear road map for Brexit, we are unlikely to see increased transactions and therefore increased revenues.”

Self-certified Sophisticated Investor

Please read

I declare that I am a self-certified sophisticated investor for the purposes of the restriction on promotion of non-mainstream pooled investments. I understand that this means:

I am a self-certified sophisticated investor because at least one of the following applies:

I accept that the investments to which the promotions will relate may expose me to a significant risk of losing all of the money or other property invested. I am aware that it is open to me seek advice from someone who specialises in advising on non-mainstream pooled investments.

High Net Worth Investor

Please read

I make this statement so that I can receive promotional communications which are exempt from the restriction on promotion of non-mainstream pooled investments. The exemption relates to certified high net worth investors and I declare that I qualify as such because at least one of the following applies to me:

STAY AHEAD OF THE MARKET

Sign up for first access to new developments and exclusive property investment opportunities.

We send limited and targeted emails on new launches and exclusive deals which best fit your areas. We are trusted by over 30,000 active buyers as their source for new stock.

  • New property developments
  • Professional market reports
  • Property deal alerts
  • Development updates
Manchester property investment

FIRST FOR NEWS AND KNOWLEDGE.

Receive trending news straight to your inbox and stay up to date on all of the property market trends and advice.

Established since 2005 we are a leading voice of authority and commentary on the UK property market. Our news is trusted by Apple News & Google News.

  • UK housing market
  • Mortgage & money
  • Buy-to-let landlords
  • Guides & advice

Talk to us

Speak to our UK property experts today:

 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

 

+852 6699 9008

Open from 9am-6pm HKT