UK budget: Will it impact investment in London property market?

Chancellor of the Exchequer George Osborne last week announced his eighth British budget, introducing tax changes for the UK.

How will these tax changes announced by Osborne in his latest budget speech (March 16, 2016) affect investors looking to London property?

Leading London agent, Alan Wheatley, Fraser & Co. reacted to the announcements.

Alan Wheatley, regional director, Middle East, of Fraser & Co, said: "In his latest budget UK Chancellor George Osborne yesterday confirmed details of the 3 per cent stamp duty surcharge on buy-to-let and second homes from 1 April 2016. There's been plenty of speculation that the Stamp Duty Land Tax (SDLT) changes will take the heat out of the investor market. Yes, higher rates will no doubt give overseas investors food for thought. But with currency swings, developer discounts and the opportunity to offset against capital gains tax, the smart money is still far better off in London property than any other asset class - whether that's the stock market, savings account, bonds or oil. For investors in the Middle East, all roads still lead back to property - and London remains a sound, solid investment."

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