The condition of the London Property Investment Market

There isn’t any denying the trials and tribulations from the UK, European and Global economies lately have had a detrimental impact on the overall property market in the UK as well as the marketplace for overseas buyers. There’ve also been alterations in the tax laws governing UK property ownership and these changes specifically affect non-British homeowners. Despite these 4 elements, London is still an ideal location for international investors to get property what has actually changed lately and how will which affect the desirability of investing in the top london, uk property market within the years into the future?


International buyers from Russia, China, Japan as well as the USA could be high value individuals who are prepared to pay reasonably limited (whether in property prices or perhaps in fees and taxes due) to be able to possess a home working in london. That isn’t to say that they can not have access to a well planned tax plan to be able to minimise their liability to tax in the UK but it will not be a deterrent to owning property there. Minimising tax liability is really a normal part from the tax planning of companies from small one-man bands to major enterprises and high value individuals same goes with not be new things to anyone considering investing in the London Property Investment opportunity.

Overseas individuals buying prime UK property worth ?2 million or even more in their own individual name are susceptible to Stamp Duty Land Tax (SDLT) at a rate of 7% if the same rentals are bought with an offshore company, where the name of the individual could be anonymous, then the rate of Stamp Duty Land Tax (SDLT) more than doubles to 15%. Those who are not British citizens are also likely to other taxes when having a UK property such as the Annual Residents Property Tax (ARPT), even though this is not applicable to property investors who aren’t residing in their home. There is also a liability for Capital Gains Tax (CGT) that need considering if the rentals are subsequently sold, which isn’t highly relevant to British buyers’ main residence. Prime London property continues to go up in value so CGT is really a major consideration for almost any property acquisition of great britain by overseas buyers or UK nationals.

But exactly how does the prime London market compare with other countries when it comes to property investment for overseas buyers? Well, it is broadly just like some Countries in europe and to the united states as well as in countries where the tax regime is much more favourable, those countries do not provide you with the selling point of having a house working in london using its cultural highlights and political stability.

The UK property market could be changing evidently from it but ultimately London will invariably attract the wealthy overseas buyer and figures suggest there is no reason to doubt what has popularity will not continue. High value men and women continually be attracted to britain’s capital as well as the cachet of having a property here. Most are now even in a position to secure large mortgages through specialist London mortgage brokers.
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