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Tempus

Every Flat in a New South London Development Has Been Sold to Foreign Investors

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Hat tip to papag in the Prime London thread. Deserves its own thread. Story here https://www.vice.com/en_uk/article/every-flat-in-a-new-south-london-development-has-been-sold-to-foreign-investors

"Transparency International, a not-for-profit organisation which exposes global corruption, state in their 2017 report "Faulty Towers" that the number of South Gardens units sold abroad is 51 out of 51 properties, as per Land Registry documents." 

"According to Land Registry searches, many properties have been bought – three at a time – by international investors, exclusively using the same solicitor, Riseam Sharples, who appear to have been given exclusive use for all sales. From their own website, Riseam Sharples help offshore buyers purchase "off-plan properties in the course of construction including multi-unit acquisitions and the sale of contracts prior to completion… with many of our clients based offshore".

"Not only are all of the buyers of the new South Gardens foreign investors; from the 51 bought so far, many appear to be offshore – untraceable and untaxable. Every single one of the 51 purchases made is listed as "care of 2 Tower Street, WC2H 9NP". Helpfully, that's Riseam Sharples' office address."

Report here http://www.transparency.org.uk/publications/faulty-towers-understanding-the-impact-of-overseas-corruption-on-the-london-property-market/

The apathy and lack of outcry in London means nothing happens. Just a nice little earner so it will keep happening again and again. As we know, London leads the world in this business.

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You may want to contribute to the consultation on the beneficial ownership register for property held by overseas companies: https://www.gov.uk/government/consultations/property-ownership-and-public-contracting-by-overseas-companies-and-legal-entities-beneficial-ownership-register (The register is happening, the consultation is on what form it will take.)

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These flats WERE built FOR foreign investors. I never received a leaflet, but you can bet rich foreigners were pressed by the brokers over there!

Edited by 200p

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Anything to keep the economy ticking along... these box flats would sit empty creating a glut causing a fall in property prices. They wouldnt want that, as it would hit public sector employment. :unsure: 

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Can the council not compulsorily purchase the new flats from the 'foreign investors', like they did with the original owners / leaseholders, at a similarly low price?  Then rent them out to regular people?  That would probably be the best way to resolve it, at least any flats that are being left empty.

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No, it would cause capital flight, and London to lose its status as a financial hub. Respecting property rights is one of the few assets the UK has, and that other countries don't have.

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13 minutes ago, Ballyk said:

Can the council not compulsorily purchase the new flats from the 'foreign investors', like they did with the original owners / leaseholders, at a similarly low price?  Then rent them out to regular people?  That would probably be the best way to resolve it, at least any flats that are being left empty.

No but UKGOV is starting to tax foreign owners. This needs to be stepped up - say initila 20k tax on holding UK property.

Piece of p1ss politically - non nationals dont vote. Milk them like cows.

As far as the council they can target council tax rates for non resident occupiers.

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1 minute ago, spyguy said:

No but UKGOV is starting to tax foreign owners. This needs to be stepped up - say initila 20k tax on holding UK property.

Piece of p1ss politically - non nationals dont vote. Milk them like cows.

As far as the council they can target council tax rates for non resident occupiers.

That sounds like a good start.  I pay my rent each month to a Barclays bank account in Jersey (it has a UK type sort code and account number, so appears just like a regular bank account).  I occasionally wonder if tax gets paid on the income.

 

 

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14 hours ago, Tempus said:

From their own website, Riseam Sharples help offshore buyers purchase "off-plan properties in the course of construction including multi-unit acquisitions and the sale of contracts prior to completion…

Well well who would have thought that

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15 minutes ago, 200p said:

No, it would cause capital flight, and London to lose its status as a financial hub. Respecting property rights is one of the few assets the UK has, and that other countries don't have.

You are conflating land rights with property ownership.

Not the same thing at all. 

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7 minutes ago, knock out johnny said:

No he isn't

Yes, he is. 

Despite a thousand years of Landlording, controlling a field in order to extract rents from it is still not remotely the same as owning a pencil. 

Edited by DrBuyToLeech

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49 minutes ago, Ballyk said:

That sounds like a good start.  I pay my rent each month to a Barclays bank account in Jersey (it has a UK type sort code and account number, so appears just like a regular bank account).  I occasionally wonder if tax gets paid on the income.

Warning: you may be liable for your landlord's tax if it is isn't being deducted by an agent! https://www.gov.uk/guidance/paying-tax-on-rent-to-landlords-abroad

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1 hour ago, DrBuyToLeech said:

Yes, he is. 

Despite a thousand years of Landlording, controlling a field in order to extract rents from it is still not remotely the same as owning a pencil. 

Why is it not remotely the same as owning a pencil?

That is a serious question

Am i allowed to own a field in order to grow food?

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51 minutes ago, knock out johnny said:

Why is it not remotely the same as owning a pencil?

That is a serious question

Am i allowed to own a field in order to grow food?

For a million different reasons, and that's the point.  Property is such a broad category of different things, things we relate to in very different ways, that it is essentially meaningless.

For example: do I own my cat? Sort of. Can I dispose of it at will?  No.  

At best it's a vague shorthand for something much more complex.  At worst as it's a thought terminating cliche that is used to shut down proper debate.

So debate the issue at hand, and don't just appeal to 'property rights' as if they are some kind of inviolable law.

 

 

 

 

Edited by DrBuyToLeech

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1 hour ago, xiox said:

Warning: you may be liable for your landlord's tax if it is isn't being deducted by an agent! https://www.gov.uk/guidance/paying-tax-on-rent-to-landlords-abroad

I didn't know that, but very interesting.  I don't think it affects me as I'm pretty sure the landlord is a UK resident.  Very little media coverage of that issue at all though, I don't think I'd heard about it here or anywhere else.  I Googled 'Non-Resident Landlord Scheme' and not much came up.  I guess most non-resident landlords use letting agents, but I wonder how much fraud / evasion there is where this is not the case?

Also I didn't realise that non-resident landlords only pay 20% tax on rental income.  That surely seems to skew UK rental property ownership very much towards foreign investors?  ie if foreign investors can have a limitless portfolio on which they only pay 20% tax, whereas UK taxpayers pretty soon get to the point where they are paying 40% tax, will we see a lot more UK property being sold abroad?  Maybe that is the aim of the government, ie to sell of more UK property to foreign investors, for a short term influx of capital to keep the economy afloat?

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5 hours ago, spyguy said:

No but UKGOV is starting to tax foreign owners. This needs to be stepped up - say initila 20k tax on holding UK property.

Piece of p1ss politically - non nationals dont vote. Milk them like cows.

As far as the council they can target council tax rates for non resident occupiers.

Well, yes, provided the council can find them to tax them.

To quote the article "Not only are all of the buyers of the new South Gardens foreign investors; from the 51 bought so far, many appear to be offshore – untraceable and untaxable."

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3 hours ago, DrBuyToLeech said:

For a million different reasons, and that's the point.  Property is such a broad category of different things, things we relate to in very different ways, that it is essentially meaningless.

For example: do I own my cat? Sort of. Can I dispose of it at will?  No.  

At best it's a vague shorthand for something much more complex.  At worst as it's a thought terminating cliche that is used to shut down proper debate.

So debate the issue at hand, and don't just appeal to 'property rights' as if they are some kind of inviolable law.

 

 

 

 

What do you want to debate that you think i am trying to stifle?

You own a cat and are frre to use it within the confines of the law

The same goes for my field

Do you have an issue with property rights?

Edited by knock out johnny

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This would be easy to reverse. Simply add a tax surcharge on any owner who is not fully tax resident. Either you contribute your share by paying full UK tax on worldwide earnings or you contribute 1.000 per property [doubled yearly until it gets to 10k] contribution. Use the  contributions to reduce CT bills for everyone else would make it popular.

By the way you don't pay 20%. You mostly get a tax free allowance [now 11k ?] too.

The criteria for that ..... if you're a commonwealth citizen.

 

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1 hour ago, Snugglybear said:

Well, yes, provided the council can find them to tax them.

To quote the article "Not only are all of the buyers of the new South Gardens foreign investors; from the 51 bought so far, many appear to be offshore – untraceable and untaxable."

Put a charge on the glat. No response in q2 monyhs? Start repoing it.

Ive said it before, buying property is a stupid way to hide money.

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42 minutes ago, knock out johnny said:

What do you want to debate that you think i am trying to stifle?

You own a cat and are frre to use it within the confines of the law

The same goes for my field

Do you have an issue with property rights?

I don't think you are trying to stifle debate, my original reply wasn't to you.  

I don't know what property rights really are, and nor does anyone else.

I have serious problems with the way the state allocates land, but those problems are unrelated to other things, pencils, shoes, convertible bonds, and so on.

 

Edited by DrBuyToLeech

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5 hours ago, spyguy said:

Put a charge on the glat. No response in q2 monyhs? Start repoing it.

Ive said it before, buying property is a stupid way to hide money.

Or put in place the sort of restrictions Singapore does.

Neither of those things is going to happen in the UK, though.

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5 hours ago, spyguy said:

Put a charge on the glat. No response in q2 monyhs? Start repoing it.

Ive said it before, buying property is a stupid way to hide money.

I actually don't mind only bcos in the end it brings change to the market which is what i am waiting for, just that little bit more sooner IMHO as next time around since house prices only ever go up these guys buying will want more, there is a tipping point - bring it on and then bang

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