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Super-Rich Foreign Buyers Show Jitters Over Labour Government Prospect

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In the first sign that interest from super-rich foreign buyers may be cooling, a London agent has said that the prospect of Labour winning the next election could be scaring them away.

Richard Barber, partner in residential sales at W. A. Ellis in Knightsbridge, said there has been a decrease in foreign purchasers of properties over £5m.

He said this was down to apprehension about the 2015 election “with the belief that if a Labour government was elected, they would eventually introduce a mansion tax”.

However, Barber said that the sub-£2m market remains healthy, with a “strong appetite” in investment property from buyers in Singapore, Hong Kong, China and India.

If Barber is correct that foreign interest in £5m-plus properties has cooled, then this will have happened over the last few months. In May, Land Registry data shows 27 transactions in this price bracket, compared with 15 in May last year. All but one of these £5m-plus sales in the UK were in prime central London.

According to Naomi Heaton, of property fund London Central Portfolio, a handful of such high prices are skewing real average prices. She says one-third of all sales in prime central London were in the £500,000 to £1m band in May.

Meanwhile, London MP Simon Hughes has argued in the Commons that the Government should crack down on foreign investors snapping up property in London.

In a debate in the Commons, he said they were pricing local people out of the market. 
The deputy leader of the Liberal Democrats said: “People who have lived here for five years, 10 years, 15 years or all their life, now cannot find a place they can afford.


“Developers find foreign purchasers to buy straight from plans. They pay their money up front, which helps fund the development.

“It is estimated that in prime London markets, up to 75% of buyers are from overseas.”

He called for properties to be advertised locally at the same time as they are sold abroad.

Housing minister Mark Prisk said: “We need a balance to be struck, but overall, London benefits from being an open and diverse city that attracts investment from around the globe.”

From EAToday: Super-rich foreign buyers show jitters over Labour government prospect

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They obviously are still under the illusion that the labour party act in the interests of normal people.

+1 I was thinking the same, they clearly do not understand modern UK politics and think that there is some kind of difference between the main stream political parties, foreigners seem to have this romantic fantasy of the UK being some bastion of fair democratic process with wonderfully approachable public servants who all drink tea at 4pm. :rolleyes:

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In other news, Estate Agent suggests that rich people are beginning to become aware that UK house prices are just a tad bit more than they are willing to pay...blames someone else.

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They obviously are still under the illusion that the labour party act in the interests of normal people.

+1

Before the last general election there were similar articles about apprehension about things the tories might do to rein things in - to pretend they were different.

A lot of the article seems slanted just to pretend that the "labour" party is actually some sort of labour party.

Exactly the same as before the 1997general election.

Edited by billybong

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They ought to rename themselves the "Chindian Labour Party".

The "Benefits Party" would be more like it, they abandoned their old core voters in 1997.

As a trade union member I was richer under Thatcher than Blair.

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All Labour do is tax those who work and give to the benefits class, while letting the super rich do as they please.

You would have thought that the super rich would have figured that out by now.

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The super rich benefited under labour and benefit under the tories ... makes no difference to them in the slightest.

Correct. Both Lab and Con are wedded indelibly to policies of uncontrolled immigration and rampant house price inflation. The Ponzi Party.

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All Labour do is tax those who work and give to the benefits class, while letting the super rich do as they please.

You would have thought that the super rich would have figured that out by now.

The super rich tend to be those most terrified of even a hint that they might be taxed to pay for things like schools and hospitals for the proles. Even though the marginal value of extra money for them is essentially zero.

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  • 238 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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