Boris Johnson wages war on flat grabbers by vowing to introduce a foreign buyers levy
BORIS Johnson yesterday vowed to slap a new surcharge on overseas investors who are fuelling the housing crisis by buying up British homes and leaving them empty.
The Tories will hike stamp duty rates by an extra three per cent for all purchasers of residential property who aren’t taxpayers in the UK.
Ministers said the new levy would be added on top of the additional three per cent that second-home buyers and investors already have to pay.
They stressed the policy, which would affect about 70,000 sales a year, will apply regardless of nationality – including to British expats and overseas companies.
The new tax is expected to raise up to £120million a year which the Government said will be used to tackle homelessness.
It would be used in London the most, where almost one in seven properties sold between 2014 and 2016 went to overseas buyers.
And in the capital’s most exclusive boroughs, like Belgravia, they accounted for more than half of purchases in the second half of 2017.
Wealthy individuals and companies from Russia, the Middle East and Europe have bought up property as an investment and left it empty or rented it out at sky-high prices.
Treasury minister Rishi Sunak, said: “Evidence shows that by adding significant amounts of demand to limited housing supply, purchases by non-residents inflate house prices.
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“That is why we are introducing a higher rate of stamp duty for non-UK residents that will help to address this issue and could raise up to £120million.
“Britain will always be open to people coming to live, work, and build a life in this great country.
“The steps we are taking will ensure that more people have the opportunity of a great place to live and build a family.”
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