In order to tackle the housing crisis and the dwindling supply of property in the capital, Boris Johnson has called upon the London Boroughs to strongly increase council tax for owners of vacant homes.
One of the primary causes of the problem are foreign investors buying up property in some of London’s most exclusive areas and keeping them solely as assets. Boris Johnson said, “What is certainly not acceptable is people buying homes as assets and then keeping them empty in Kensington and Chelsea or Westminster or wherever as a sort of bank balance in the sky.’
The Mayor of London is hoping that the threat of being heavily taxed will motivate landlords to find tenants and help to ease the imbalance between the supply and demand of housing.
Camden council has been the first of the London boroughs to act on the issue of vacant properties by imposing 150% council tax on properties that have been empty for more than 2 years and Boris Johnson is hoping that more of the London councils follow suit.
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