Overseas investors looking to buy property in London could find the process more challenging if Labour win the next election. The party’s leader Ed Miliband intends to double council tax for vacant properties, and put a stop to roadshows which set up abroad to advertise new London developments.
There are estimated to be around 60,000 empty properties in London. Those that stand empty for 12 months may be charged double the usual council tax, under the proposals.
Mr Miliband made it clear he wants UK buyers to be offered new developments before they are marketed to overseas investors.
Labour also wishes to remove a rule which enables the avoidance of certain taxes if a property contains some furniture.
The news comes soon after Labour said it would create statutory three-year tenancies and prevent large annual rent increases.
Some say both the proposed changes to tenancies and overseas-property investments do not go far enough in improving the renter’s lot. Others, on the other hand, say such changes show a misunderstanding of market forces, and that they are unfair.
Are you one of our overseas-based customers who own empty property and would be affected by the proposed changes to how vacant property is taxed in London?
Would it encourage investors to rent their properties out, freeing up more housing in the capital?
And would the doubling of council tax be enough to deter overseas investors from leaving their property vacant?
As always, leave your views below.