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If you are covering the government opening a consultation into the introduction of a new stamp duty land tax surcharge for non-uk resident homebuyers, please see the following comment from Gemma Harle Managing Director of Intrinsic Mortgage Network, part of Quilter:
The start of a consultation today into introducing a 1% stamp duty surcharge for non-UK residents buying residential properties might finally usher in some much needed unity in the Government especially as the extra money raised from the tax will be funnelled into helping the homeless. However, regardless of its popularity as this is only at consultation stage we are unlikely to see this fully enacted for a little while yet.
According to a report created specifically for Sadiq Khan in 2017, 3,600 of London’s 28,000 newly built homes between 2014 and 2016 were snapped up by foreign buyers with about half of those properties priced for first-time buyers between £200,000 and £500,000, showing this is a significant problem. Typically overseas buyers have a higher-net worth than those simply trying to get their first foot on the housing ladder and can price people out of a deal which in turn inflates property prices.
Some might say that this policy signals that the UK is not open for business at a time when we should be welcoming global investment with open arms due to the uncertainty of Brexit. However, the 1% surcharge is unlikely to impact investor sentiment too much and is a simple mechanism to increase funding for the growing homeless population. During this politically bruising period, this consultation is likely to be the first step in creating a policy which is well liked and will garner a fair bit of cross-party support.
However, the Government has rightly highlighted in the consultation that the best way to stabilise and improve affordability in the housing market is quite simply to build more housing, a statement everyone would like to see actioned. Similarly, more policies which incentivise people to downsize might free up existing housing further down the chain and give first-time buyers a better chance of getting their first foot on the housing ladder could be crucial in getting more people out of rented accommodation and into their own home.
Quilter plc is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.
Quilter plc oversees £118.1 billion in customer investments (as at 30 September 2018).
It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset investment solutions and discretionary fund management.
The business is comprised of two segments: Wealth Platforms and Advice and Wealth Management.
Wealth Platforms includes the Old Mutual Wealth UK Platform; Old Mutual International, including AAM Advisory in Singapore; and the Old Mutual Wealth Heritage life assurance business.
Advice and Wealth Management encompasses the financial planning network, Intrinsic; Quilter Private Client Advisers; discretionary fund management business, Quilter Cheviot; and Quilter Investors, the Multi-asset investment solutions business.
The Quilter plc businesses are being re-branded to Quilter over a period of approximately two years:
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