Labour’s Sadiq Khan wants a capital gains tax hike for certain investors.
The Mayor of London responded to another Labor politician – Sam Moema – who was speaking out against overseas ownership levels of buy-to-let and other properties in the capital.
Khan says he wants the government to increase the premium for empty homes for foreign owners of empty properties, raise capital gains tax from 28% to 40% for foreign buyers and raise the tax rate annual report on wrapped accommodation for overseas companies with large property portfolios in London.
An analysis released by the Center for Public Data in November found that the number of title deeds held by people with foreign mail addresses has more than doubled to over 247,000 since 2010.
According to the research, the City of Westminster, Tower Hamlets, Kensington & Chelsea, Wandsworth and Southwark all had the highest number of title deeds registered for overseas individuals and property companies.
Khan’s office says the mayor’s proposed tax hikes could bring in £370m a year and fund the delivery of nearly 2,500 affordable homes.
Moema – who is Labour’s housing spokesperson in the London Assembly, said: ‘There is a serious housing crisis in the capital and the government has continually refused to provide [Sadiq Khan] and municipalities with adequate financial support to deal with it.
“We must consider using all the tools at our disposal to fund the affordable, decent quality housing that Londoners desperately need.
“Since 2010, there has been an increase in the number of properties purchased by individuals and businesses based outside the country. Too often these homes are left empty, as thousands of Londoners sleep rough or are trapped in limbo in temporary accommodation.
“I agree with the mayor that there is a great opportunity here for the government to take the bold and necessary step of raising taxes on properties held overseas and reinvesting the revenues into opening up of the housing market to thousands more Londoners”.