New tax for overseas buyers of UK property

overseas buyers of UK property
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British Prime Minister Theresa May will this week unveil detailed plans to impose an additional tax on overseas buyers of UK property.

She is expected to announce further details at this week’s party conference however, the British press widely covered her intentions yesterday (Sunday).

The exact amount of the new foreign buying tax (stamp duty) has been reported as being between 1 percent and 3 percent, but when it will be introduced remains unknown. The proceeds will be used to tackle rough sleeping in the UK.

With average British house prices standing at around £ 235,000 (THB 9.9 million), a 3 percent tax likely would add an extra £ 7,050 (THB 300,000) to the purchase price for overseas buyers.

Research from York University suggested that 13 percent of new homes in London were purchased by non-residents between 2014 and 2016. That figure is likely to be a little lower now.

That said, overseas buyers of UK property have been widely blamed for increasing prices.

A statement issued by Theresa May said: “Britain will always be open to people who want to live, work and build a life here.”

“However, it cannot be right that it is as easy for individuals who don’t live in the UK, as well as foreign-based companies, to buy homes as hardworking 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.”

“This government is committed to helping hardworking British residents get the right home for them and helping to end the scourge of rough sleeping for good.”

If you’re considering buying UK property you might want to act sooner rather than later.

However, British developers are savvy and will likely still want buyers from overseas, and will find ways to tempt them, such as service packages that will be equal to the amount of any additional taxes.

Andrew Batt
The author of this article is Andrew Batt, the founder and editor of Andrew has been writing about property and real estate issues in Thailand and Southeast Asia for more than 10 years. He has worked for PropertyGuru Group, DDproperty, Dot Property Group, Hipflat and AsiaRents. He has also produced content for leading Thailand property developers and real estate agencies.

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