London mayor requires seizure of luxurious houses owned by Putin cronies in capital

London mayor Sadiq Khan has referred to as for the seizure of houses within the capital owned by cronies of Russian president Vladimir Putin.

Mr Khan mentioned the transfer might contain 100 luxurious properties with a mixed worth of £1.1bn, in what could be a dramatic extension of sanctions over the invasion of Ukraine.

The mayor mentioned it ought to be backed up by a brand new tax on abroad consumers which might raised £370m a yr for inexpensive housing and cease London getting used as a playground for worldwide oligarchs.

“For a lot too lengthy ministers have turned a blind eye to the usage of our capital’s houses as a protected harbour for oligarchs to park their money, which is having a destructive influence on each our worldwide popularity and our native housing market,” mentioned Mr Khan.

“Now could be the time to behave.

“London will at all times be open to international funding and the hundreds of thousands of individuals from around the globe who select to make our metropolis residence.

“However we should take proactive measures to insist on a higher contribution from abroad consumers, clamp down on those that look to use our openness, and use the cash to put money into social and different low-cost houses for Londoners.”

Anti-corruption strain group Transparency Worldwide estimate that £1.1bn value of London property is owned by Russians accused of corruption or hyperlinks to the Kremlin.

The UK’s light-touch property rules imply London has develop into a magnet for international millionaires and billionaires wishing to cover their property.

The federal government’s proposed Financial Crimes Invoice consists of measures to crack down on international plutocrats’ use of London to launder ill-gotten positive factors. Boris Johnson on Thursday introduced that parts of the invoice can be introduced earlier than MPs by Easter after complaints that he was dragging his ft.

It’s feared {that a} lack of transparency within the authorized and useful possession of corporations and properties could possibly be aiding offences akin to tax evasion and cash laundering, in addition to hiding the property of those that would come below any potential sanctions regime.

Mr Khan referred to as for the creation of a register of abroad possession.

And he mentioned capital positive factors tax on abroad consumers ought to be lifted from 28 to 40 per cent, alongside a rise within the council tax “empty houses premium and a hike within the annual tax on enveloped dwellings, paid by abroad corporations investing in property.

Metropolis Corridor believes these measures might increase £370m to construct 2,500 new council and genuinely inexpensive houses annually.