Why Foreign Investors Look to Invest in UK Land

The meteoric rise in London residential prices may cool with a new capital gains tax on non-residents. But foreign investment in UK house building could advance.

When UK Chancellor of the Exchequer George Osborne announced in 2014 that a capital gains tax on foreign real estate buyers would be imposed, many who felt it was long overdue cheered him. If enacted in April 2015, this will place the same tax burden on non-UK owners of second homes as is currently placed on British citizens. But will it cool the overheated London real estate market? And might it impact foreign investors in UK land and real estate?

Already, threat of the tax seems to be slowing the purchase of high-value residences in London. Some real estate companies predict that current investors