Tax changes proposed by the new British government aimed at helping less-well-off citizens could have spin-off benefits for investors buying property in Britain.
This is because the tax changes, along with other reforms eyed by the Conservative-Liberal Democratic coalition government, ought to increase supply and demand levels in the country's housing market, according to analysts.
The coalition government says it will raise income tax personal allowances by more than GBP700 (HK$7,872) from next April. This means no tax will be levied on at least the first GBP7,000 of an individual's income.
Over the course of this five-year Parliament the tax-free threshold will rise to GBP10,000, which could cut the income tax bill of a Hong Kong landlord by GBP700 a year.
'Any reduction of tax like this, especially for those earning relatively low sums in the UK, is welcome and provides a benefit for investors,' said Liam Bailey, head of residential research at estate agency Knight Frank.
The previous government's temporary abolition of 1 per cent stamp duty on homes valued up to GBP250,000 for first-time buyers will be made permanent by the coalition. This stamp duty cut is intended to help those struggling to a get a foot on the property ladder, but it will assist foreign buyers too - if they don't already own a home somewhere else in the world.