Jun
16
London Housing Market Facing ‘Major Shock’ After Tax Rises
ByLondon’s housing market is facing a “major shock” as private landlords offload properties because tax increases will reduce returns on their investments to near zero, according to analysts at Deutsche Bank AG.
New lending rules will also severely restrict the ability of investors, who have accounted for about 40 percent of purchases in recent years, to fund property purchases with debt, Deutsche Bank analysts Oliver Reiff and Markus Scheufler wrote in a report Wednesday. Landlords selling homes may create an excess of properties on the market, damping prices…