Labour Party Aims to Tighten Rules on Foreign Buyers of UK Properties to Support First-Time Buyers
Labour Party Proposes Stricter Measures to Curb Foreign Buyers of UK Homes
Keir Starmer's Labour Party plans to implement new regulations targeting foreign property buyers in the UK, aiming to facilitate homeownership for young Britons. The proposed measures include an increase in stamp duty for overseas investors and a restriction on their ability to purchase more than 50 percent of homes in new developments.
Furthermore, Labour intends to give priority to first-time buyers by granting them exclusive rights to purchase new build properties for a specified period, effectively reserving them for domestic buyers. While the exact duration of this "window" would be determined through collaboration between individual councils and developers, it is expected to last around six months.
Labour officials have confirmed these plans, initially introduced during party conferences in 2021 and 2022, and anticipate their inclusion in the upcoming election manifesto set to be finalized this summer.
In contrast, Chancellor Jeremy Hunt has dismissed the idea of higher property taxes for foreign investors due to concerns about potential market stagnation. However, the National Association of Property Buyers (NAPB) has called on Mr. Hunt to raise the stamp duty for overseas buyers, arguing that it would generate revenue and create a more level playing field for local buyers.
Data from the Centre for Public Data reveals a significant increase in overseas ownership of homes in England and Wales, rising from 88,000 in 2010 to approximately 250,000 in 2021.
While prioritizing domestic buyers is a key objective, Stewart Baseley, executive chair of the Homebuilders Federation, cautioned that large-scale developments often rely on upfront funding that can be provided by foreign investor buyers.
These proposals come at a time when Rishi Sunak, facing pressure from within his own party following the recent local election losses, is being urged to reconsider policies that could help young individuals enter the property market. Former cabinet minister Simon Clarke criticized the government's decision to abandon national house-building targets, arguing that it had negatively impacted the Conservative Party's performance in the elections. He called for a different approach, refraining from engaging in anti-development campaigns and instead appealing to forward-thinking individuals who recognize the benefits of housing initiatives.
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https://www.independent.co.uk/news/uk/politics/labour-foreign-buyers-uk-property-b2334833.html
