Asian investor appetite for UK property to outweigh privacy concerns of planned ownership register
Overseas buyers of property will not be able to hide their identities under the register plan, but the buoyancy of the UK market will continue to attract their money, analysts say
Hong Kong and mainland Chinese buyers of British property may not be able to shield their identities when the country introduces a public register of ownership in three years’ time, but the attractiveness of the UK property market is likely to outweigh any concerns over privacy, according to analysts.
The UK is set to introduce the register, which will name publicly the ultimate owners of overseas companies who own or buy property in the country, in an effort to combat perceptions of tax evasion and money laundering through the property market. Draft legislation will be published later this year and the register is expected to go into effect by 2021.
In the first quarter of last year, buyers from Hong Kong alone spent almost US$3 billion on UK property, nearly US$1.3 billion more than all other foreign buyers and global funds combined.
“Persons in Hong Kong considering new UK property purchases should consider the possible impact of the introduction of the public register, and how their investment should be made in the future, whether in a personal name or even through a UK company,” said Nimesh Shah, a partner at accounting, tax and advisory practice Blick Rothenberg.