Property: Foreign Investment in UK
The question
To ask the Secretary of State for Housing, Communities and Local Government, what assessment her Department has made of trends in the level of accumulation of UK residential property by foreign investors; and what assessment she has made of the potential impact of the accumulation of residential property by foreign investors on the property market for UK buyers.
Answered by Matthew Pennycook
The Department has not conducted a specific assessment of trends in the level of residential property ownership by foreign investors in the UK.
Data on property ownership by overseas companies in England and Wales is published by HM Land Registry and is publicly available via the GOV.UK website.
We recognise concerns about the impact of overseas investment on housing affordability, particularly for first-time buyers. In response, and as part of this government’s commitment to supporting first-time buyers, we have introduced fiscal measures to level the playing field.
Non-UK residents already pay a 2% surcharge on top of the residential rates of Stamp Duty Land Tax (SDLT) when purchasing a dwelling in England or Northern Ireland.
In addition, at the Autumn Budget 2024, the government increased the higher rates of SDLT by two percentage points from 3% to 5%. The higher rates are also paid by non-UK residents purchasing additional property.
Increasing the higher rates of SDLT helps to ensure that those looking to move home, or purchase their first property, have a greater advantage over second home buyers, landlords and companies purchasing residential property.
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