May reveals plan to tax foreign property buyers

Theresa May has revealed plans for a new tax on foreign property buyers, the proceeds of which will be spent on dealing with homelessness.

Speaking on the Andrew Marr programme on Sunday, the prime minister said that, “we are very concerned about the impact that foreign buyers have on the housing market and the impact they have on people who are living here and trying to get into the housing market… the evidence is that foreign buyers coming in pushes house prices up and lowers home ownership here.”

May added that a surcharge of between 1 per cent and 3 per cent on top of stamp duty would stop foreign buyers from driving up UK house prices, and that “the money we raise from this extra stamp duty is going to be spent on dealing with the issue of rough sleeping.”

Further details are unclear at this point, although Conservative party chairman Brandon Lewis told Sky News that, “we are going to consult on the figure but around 1 per cent, we are going to consult to see if that’s the right figure.”

Last Monday, during the Labour party conference, shadow housing secretary John Healy made a speech in which he stated that a Labour government would introduce a levy on second homes and holiday homes.

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  • Michael D J Donnelly 1st October 2018 at 10:16 pm

    As a finance and property specialist of 30yrs with a business background and no interest in politics, I would like to see the UK be the leading nation that it has been, It will only happen when the decision makers do so from knowledge of the business world. I agree that a lot of great business comes from outside the UK, which as such a small nation is a jolly good thing and that should be encouraged. The thing to fix is the massive misuse and abuse of public funds,ie in the national health, ie cost of drugs due to legal agreed price increases that no business would allow. The cash in hand never declared world that we all know goes on. The homeless need a lot of help but again we all know it’s not just money that is needed, which is simply to say and sounds so good. Let real business grow with honesty, fairess and true concerner and fair wages do its part for all people.

  • Michelle Lawson 1st October 2018 at 1:46 pm

    So when the housing market is already struggling and the Government cannot provide enough housing, let’s put the brakes on again and stop the foreign buyers!!! They have hit the Buy to Let investors, First Time Buyers just can’t get the deposit together (especially in London which is where I am guessing much of the foreign investment comes from), made it hard for Pensioners to use their pension fund to buy property by the higher level of SDLT and more. Jury is out as such until the Budget but we need a focused Government, with a long term committed and focused Housing Minister and help people get a home. This money will not be spent in the way that it has been earmarked for I am sure. By the Government’s own admission there is not enough homes- by taxing more will just make people pull away even more when we don’t need them too. I am seriously so disillusioned with this bunch of clowns but I cannot think of an alternative either!!!