Prime Minister Theresa May has unveiled a new ‘enhanced’ Stamp Duty Land Tax (SDLT) levy affecting foreign investors in UK property.
The new levy, which was first announced at the Conservative Party Conference, will see foreign individuals and companies who invest in UK property incur an additional one to three per cent in SDLT.
The move comes amid concerns that allowing foreign buyers to ‘snap up’ UK homes while paying the same rate of SDLT as British residents is “inflating house prices,” making it more difficult for first-time buyers to get on the property ladder and exacerbating issues such as ‘rough-sleeping’.
In a recent interview with the BBC’s Andrew Marr Show, the PM said that it “cannot be right that those who don’t live in the UK can buy properties as easily as British residents.”
“Britain will always be open to people who want to live, work and build a life here,” she told the Conservative Party Conference a few days earlier.
“However, it cannot be right that it is as easy for individuals who don’t live in the UK and don’t pay taxes here, as well as foreign based companies, to buy homes as hard-working British residents.
“For too many people the dream of home ownership has become all too distant and the indignity of rough sleeping remains all too real.”
The news comes at a time when Theresa May’s Government has faced criticism for scrapping SDLT for first-time buyers, but doing very little to reach existing home-building targets in a bid to improve supply for those trying to get on the property ladder.
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