By Andrew Batt:
A UK member of parliament has called for the introduction of a law to stop foreigners buying London new-build properties.
Simon
Hughes (pictured), the Liberal Democrat MP for Bermondsey & Old
Southwark, yesterday told reporters: “Too many of the homes which are
being built are now snapped up by wealthy individuals and companies
abroad, often as investment properties.
"The law should be
changed so that housing in London can only be bought by people or
companies resident or domiciled in the UK, unless it is as a permanent
home or they have express permission from the Mayor of London. We must
stop this extra upward pressure on London’s housing costs as soon as
possible."
To date this year many hundreds of property buyers and investors from
Southeast Asia have purchased property in London and elsewhere in the
United Kingdom.
In
2012 Singaporeans were the leading overseas buyers of central London
new-build properties, with buyers from Malaysia and Indonesia ranked in
the top ten.
One industry expert has reacted strongly, suggesting
the proposal will fall on deaf ears and stands no change of being
implemented.
Trevor Abrahmsohn, Managing Director of Glentree Estates, told PrimeResi:
“Simon Hughes, have you gone completely crackers? I have never heard
such a daft proposal in all my life – since the window tax. Imagine the
mayhem with international buyers if such a nationalistic proposal were
implemented.”
He added that the one thing that the residential property market does not need is further regulation.
Andrew Batt, International Group Editor of PropertyGuru, wrote this story. To contact him about this or other stories email andrew@allproperty.com.sg
Recent stories you may have missed
Bangkok becomes more expensive for expats
Boom in Bangkok’s office sector
Calls to tighten foreign property ownership laws
Aussie agent targets children