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Housebuilders hit by foreign buyers’ tax plan
The housebuilding sector is under renewed pressure amid new Government plans to impose a tax on foreign buyers of property in the UK.
Prime Minister Theresa May outlined plans for a 3% stamp duty surcharge for buyers of UK property who do not pay tax in Britain at the Conservative Party conference on 30 September.
The negative stock market reaction, with London operator Berkeley (BKG) worst hit, reflects the disproportionate impact this move is likely to have on the high-end market in the capital where wealthy overseas investors have helped support the market.
Several of Berkeley’s peers also fell including most notably Barratt Developments (BDEV) and Taylor Wimpey (TW.) as the news implies the supportive regulatory environment, represented most notably by the Help to Buy scheme, looks like it could be on the turn. (TS)