House­builders hit by for­eign buy­ers’ tax plan

PM an­nounces new pol­icy at Con­ser­va­tive Party con­fer­ence

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THE HOUSE­BUILD­ING sec­tor is un­der re­newed pres­sure amid new Gov­ern­ment plans to im­pose a tax on for­eign buy­ers of prop­erty in the UK.

Prime Min­is­ter Theresa May out­lined plans for a 3% stamp duty sur­charge for buy­ers of UK prop­erty who do not pay tax in Bri­tain at the Con­ser­va­tive Party con­fer­ence on 30 Septem­ber.

The neg­a­tive stock mar­ket re­ac­tion, with Lon­don op­er­a­tor Berke­ley (BKG) worst hit, re­flects the dis­pro­por­tion­ate im­pact this move is likely to have on the high-end mar­ket in the cap­i­tal where wealthy over­seas in­vestors have helped sup­port the mar­ket.

Sev­eral of Berke­ley’s peers also fell in­clud­ing most no­tably Bar­ratt De­vel­op­ments (BDEV) and Tay­lor Wim­pey (TW.) as the news im­plies the sup­port­ive reg­u­la­tory en­vi­ron­ment, rep­re­sented most no­tably by the Help to Buy scheme, looks like it could be on the turn. (TS)

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