International elite pushes Britons out of housing market

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by Kay Murchie

Foreign citizens are pricing Britons out of the property market with the aid of government tax breaks. London’s multi-million pound homes are now being snapped up by privileged internationals who are able to use offshore trusts to less stamp duty.

Analysts state that the increase in house prices in London is energised by foreign money flowing into the market making it more difficult for first time buyers to get onto the property ladder.

This is putting pressure on prime minister-to-be, Gordon Brown.
These foreign groups are free from paying tax on their international earnings, despite the fact that their countries do not tax them either.

A recent study shows that 68% of luxury properties in 2006 were bought by foreign residents. The more expensive the property, the larger the share of foreign buyers.

Property prices in nearby regions are improving alongside London which implies that the ripple effect is thriving.

British citizens living abroad pay tax on their worldwide earnings to the country in which they are resident