Tax changes could ‘kill’ London property market

The co-manager of the £826.6m Schroder Global Property Securities fund said he feared that a change in the tax treatment of property owned by foreign individuals could “kill” the London market, as it has been driven in recent years by non-domiciled wealthy individuals seeking a safe haven for their cash.

Deputy prime minister Nick Clegg said last month that the government was considering tightening the tax rules regarding foreign ownership of property in a bid to tackle a “bubble” in London.

Mr Rehlaender said: “I am nervous about the UK but at the moment companies keep finding new deals and making money.

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“London has been defying gravity. We have been taking money off the table because valuations are stretched.”

However, the manager emphasised that he was only selling small amounts.