Brexit, Trump and London Property in 2017

In 2016 we have seen 2 massive blows in the Western world to the perceived ‘establishment’ and self-declared ‘elite’, the full consequences of which will only become clear in the years to come, long after those crying about a second referendum and recounts have been forgotten. While David Cameron and CNN couldn’t see either of these things coming, the fact it took millionaire former City boy Farage and billionaire Trump to be the champions of the common people should suggest just how far out of touch the media, politicians and their lackeys are. For those of us who live in London, it would seem that now is the ideal time for the Prime Minister Theresa May to demonstrate a previously absent understanding of ordinary people’s lives. She should make some bold moves on behalf of those who work in London, against those who merely profit from owning property here.

The terms ‘establishment’ and ‘elite’ have been used a great deal during this year, generally with contempt directed at the EU/ Clinton camps. While the term ‘elite’ should be reserved for prestigious organisations like the SAS or the England rugby team, rather than sycophantic journalists and back bench MPs, the term ‘establishment’ is harder to define. In the context of London, the effect of the out of touch ‘establishment’ is best represented by the unseen, overseas/ corporate landlords who own vast amounts of empty properties in London, after cashing in on the favourable conditions and policies of the Blair/ Brown/ Cameron era. These include the unlit, empty properties by the river in Vauxhall that commuters crammed onto trains from Waterloo go past on their uncomfortable commutes home to wherever they can afford to live with their families.

In the Autumn Statement, mini budget last week the Chancellor made some noises about money for housing etc. and plans to abolish tenants’ fees, but these are largely meaningless gestures when there are some fundamental measures that can immediately provide homes. Similarly the punitive increase in Stamp Duty Land Tax (SDLT) earlier in the year is meaningless as it only punishes private landlords, while doing nothing significant to increase the overall supply of homes available. To increase the supply of housing and recalibrate the housing market in London in favour of the people who work and pay tax here, the Government and City Hall need to implement the following at the earliest opportunity:

Set a punitively high council tax rate for vacant, overseas/ corporate owned properties to ensure there is no longer an incentive to own empty properties merely as an asset. Private landlords should be incentivised to keep their properties rented out as much as possible, but not punished if they’re vacant.
Abolish Capital Gains Tax (CGT) on privately owned second homes. This will allow people to cash in on the market as it is now, as objection to paying the 1/3rd of profit CGT is the stated reason why so many people keep hold of second properties they’d rather sell.
Set CGT at 50% on all overseas/ corporate owned property immediately, with this rising to 80% on properties worth over £600,000 in 2 years and then on all overseas/corporate owned properties in 5 years. This will provide more property to the market, but should avoid a short-term, market destroying tsunami of property.
With the current climate of populist, anti-establishment mood, now is the ideal time for the Prime Minister with the support of the Labour Mayor of London to show that they are in touch with the will of the people, they are not in the pockets of big business and the Davos club, and they are willing to go against the big property owners in the interests of ordinary people struggling to make ends meet. I hope this is the case.

Written by George Anderson

EAN Content

Content shared by this account is either news shared free by third parties or sponsored (paid for) content from third parties. Please be advised that links to third party websites are not endorsed by Estate Agent Networking - Please do your own research before committing to any third party business promoted on our website. As an Amazon Associate, I earn from qualifying purchases.

You May Also Enjoy

for sale sign london
Breaking News

New-build demand dips in Q3 as homebuyers sit tight ahead of autumn statement

The latest market analysis from Property Inspect has found that fewer than one in five new homes are currently securing a buyer, with homebuyer demand for new-build properties falling on both a quarterly and annual basis. Property Inspect analysed current market listings looking at what proportion of new-build properties are already marked as sold subject…
Read More
Breaking News

Rightmove celebrates 25 years of viral property moments

As Rightmove marks its 25th birthday, we’re celebrating the properties that stopped people mid-scroll, sparked thousands of shares, and became internet sensations. From a house with its own Tardis to a shark crashing through a roof, these homes prove that the UK property market is anything but ordinary. With billions of minutes spent on Rightmove…
Read More
Breaking News

Rental stock availability in England rises by 19.7%

The latest rental stock analysis from Adiuvo, the UK’s leading provider of 24/7 property management solutions, reveals that tenants in England are benefitting from a 19.7% increase in stock over the 12 months leading up to Q3 2025. In some areas of the country, annual stock growth easily exceeded 50%. Adiuvo has analysed rental listings…
Read More
Breaking News

Tenant demand continues to climb in Q3 as rental market shows no signs of cooling

The latest market analysis by Dwelly, one of the UK’s leading lettings acquisition and success planning experts, has revealed that tenant demand continued to climb across the rental sector during the third quarter of this year, with West Sussex home to the highest demand, whilst Rutland saw the largest quarterly increase. Dwelly’s Rental Demand Index* analyses…
Read More
Breaking News

Halifax House Price Index for September 2025 – Thoughts from the Industry

Halifax House Price Index for September 2025. The latest index shows that: On a monthly basis, house prices fell by -0.3% between August and September 2025. However, house prices were up 1.3% on an annual basis. The new average house price now sits at £298,184. Thoughts from the Industry. Nathan Emerson, CEO of Propertymark, comments:…
Read More
Breaking News

Halifax House Price Index for September 2025

House prices in September 2025 were -0.3% lower than the same month a year earlier. Average house price – £298,184 Monthly change -0.3% Quarterly change +0.4% Annual change +1.3%   Amanda Bryden, Head of Mortgages, Halifax, said: “The average UK house price edged down by -0.3% (£794) in September, following a modest rise in August.…
Read More