Foreign Property Investors Think UK Property Is A Safe Investment
According to the accountancy group – UHY Hacker Young, the number of foreign property investors owning UK property has now exceeded 2 million.
The accountancy group analysed HMRC data and discovered that the number of overseas property investors owning and renting out property in the UK private rented sector increased by 6% in the past 12 months to 2.04 Million, up from 1.93 Million in 2012.
In the past five years the number of foreign property investors owning UK PRS property has risen by 39%.
However, the accountancy group says that the consistent growth in the number of foreign investors targeting UK property may come to a halt following the Government’s recently announced plans to charge Capital Gains Tax (CGT) on the sale of properties owned by foreign investors from April 2015. A move which could discourage foreign buyers from investing in UK property when the deadline comes in to force.The UK economy is beginning to strengthen and UK property has globally been observed as a safe investment, holding its value despite the effects of the 2007/8 crash and Government interference in the assets of private individuals.
Overseas investment in UK property is not about purchasing trophy homes as foreign property investors are targeting UK buy-to-let properties in the private rental sector, and overseas investment in new build properties is funding a much needed boost to the UK housing supply.
Over the past 5 years, the tax taken by HMRC from overseas landlords who own rental properties in the UK has increased by 64% from £230 Million (GBP) in 2006/07 to £379 Million (GBP) in 2012.
HMRC has already increased its tax take on properties owned by foreign nationals in recent years and the Autumn Statement presented by Chancellor George Osborne wants to ensure that the Exchequer gets an even greater share of the substantial revenue generated by UK and overseas landlords in the rental sector of the UK property market.
The proposed tax measures are designed to alleviate concerns of another property bubble that could be created by foreign landlords and property investors, who regard properties in the UK as a safe investment.
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