Frankly tax-efficient
THE FRENCH government’s t a x c r a c k - downs on the rich is bringing a l i t t l e boom to house prices in “French” areas of London. Estate agents in Hampstead and Chelsea report interest from French buyers, with many switching from renting to buying. There has also been an uplift in internet searching following François Hollande’s election as President of France.
Frank Townsend, of Savills Hampstead, says: “We have noted a shrewdness in UK purchasing among the French, buying just below the £2 million mark to avoid the feared mansion tax and seven per cent stamp duty and associated possible levy/capital gains tax for those considering buying in a corporate vehicle. In 2011, French buyers did not figure. But we cannot be sure this activity is solely the result of Hollande’s election, especially as there is a new lycée in Kentish Town which is also attracting French families.”
Susie Hollands at Vingt Paris, a Savills affiliate in Paris, says: “Lots of French people are leaving Paris, especially those working in finance, with many seeking to relocate to London or Brussels. Their real objective is to change their fiscal residence, thus moving quickly without selling their French home, although there has been a sharp rise in properties for sale as people look to reduce their assets and avoid the new wealth tax.” She notes that the residential market in Paris has seen around a 10 per cent increase in high-value stock on the market, more evidence of the wealthy moving from the country. French renters do not usually have big budgets but in the past three months weekly budgets have moved as high as £7,500.