Skip to main content

Property Madness in UK

London Prime Property has become an international asset in the same way as any other tradeable asset from gold to bonds. It may be that the majority of properties in Zone 1 are now owned by foreign non residents. Syrians and other Arabs, Russians, Chinese: the London Property market has attracted speculators from around the globe. Increasingly, however, these new owners do not let these properties, they simply leave them empty. Walking in some central London neighbourhoods at night is a sobering experience- there are few lights on, and the economic impact is growing ever more severe.

The reasons why London Prime property became so attractive are many and varied, but the primary reason is that the UK does not tax these empty properties. Council tax is not levied when no one lives at the property, and Capital gains and VAT can be avoided very simply.

This gross distortion of London Prime property prices is destroying the city and the country. As George Osborne seeks to reflate the property bubble, the fact is that this may simply lead to significant transfers of wealth away from the UK. 

I have rarely seen a more obvious case where a land tax should be levied. It is ridiculous at a time of major housing shortages in the UK to permit such a significant portion of the housing market to simply lie idle. In my view, apart from a land tax, foreign non-residents who own UK property should at least pay a punitive capital gain rate: announced early enough this might provoke major activity and begin to de-stress the property market and create more normal investment conditions. As the rest of the UK market stagnated, London Prime has doubled over four years: this is insanity caused by our failure to tax efficiently and it is time that some of these ill-gotten gains were returned to the UK.   

Comments

Popular posts from this blog

The American National nightmare becomes a global nightmare

It is a basic contention of this blog that Donald J Trump is not fit for office.

A crooked real estate developer with a dubious past and highly questionable finances. he has systematically lied his way into financial or other advantage. His personal qualities include vulgarity, sexual assault allegations and fraudulent statements on almost every subject. 

He lost the popular vote by nearly three million votes.

He has, of course, been under criminal investigation practically since before he took the oath of office. The indictment of some of closest advisers is just the beginning. His track record suggests that in due course there is no action he will not take, whether illegal or unconstitutional in order to derail his own inevitable impeachment and the indictments that must surely follow the successful investigation of Robert Mueller into his connections with Russia.

However, all of that is a matter for the American people. 

It is also a matter for the American people that Trump is cheating…

Cicero ReDux

By Special Request of Baroness Scott and Mark Valladares... Cicero's Songs returns: bigger, longer and uncut.
October 1st marked the half way point of the Estonian Presidency of the European Union.  Perhaps for many people such an anniversary is of passing interest at best.  Yet the conduct of the Estonian Presidency is reinforcing just how forward looking and innovative the most northerly of the Baltic States has become.
Estonia is a country that wants to live in the future, and with its openness and innovation, that future seems a lot closer than almost anywhere else in Europe
It is not that Estonia does not “do” the past: the picturesque cobbled streets of old Tallinn have tourist crowds a-plenty enjoying the mediaeval architecture in an Indian summer of sunshine and blue skies.  The real point is that Estonia refuses to be a prisoner of its past. Lennart Meri, Estonia’s President in the 1990s- who spent years of his childhood in Siberia- once told me that the country had to conc…

Trump and Brexit are the Pearl Harbor and the Fall of Singapore in Russia's Hybrid war against the West.

In December 1941, Imperial Japan launched a surprise attack on the United States at Pearl Harbor. After the subsequent declaration of war, within three days, the Japanese had sunk the British warships, HMS Prince of Wales and HMS Repulse, and the rapid Japanese attack led to the surrender of Hong Kong on Christmas Day 1941 and the fall of Singapore only two months after Pearl Harbor. These were the opening blows in the long war of the Pacific that cost over 30,000,000 lives and was only ended with the detonations above Hiroshima and Nagasaki.

"History doesn't often repeat itself, but it rhymes" is an aphorism attributed to Mark Twain, and in a way it seems quite appropriate when we survey the current scene. 

In 1941, Imperial Japan, knowing its own weakness, chose a non-conventional form of war, the surprise attack. Since the end of his first Presidential term, Vladimir Putin, knowing Russia's weakness, has also chosen non-conventional ways to promote his domestic powe…