In early February, the Parliament of the country made the proposal, which can be an unpleasant surprise to foreign investors in the UK. Liberal Democratic Party offered to cancel visa program Tier 1 Investor for foreign investors (who have invested more than £ 2 million to the economy of the country) from 1 January 2017.
Jne of the main reasons for this proposal is the fact that the opacity of the majority of investment transactions with the participation of foreign capital, as well as doubts about the economic feasibility of the program.
The fact is that in 2015 the number of foreign investors attracted by the program was less than 200 (in 2014 the figure was 1800). In November 2014 a minimum investment threshold has been increased from £ 1 million to £ 2 million, which significantly reduced the flow of investments.
In addition, geopolitical and economic factors related to the two main investor countries - Russia and China - have had a negative impact on the volume of transactions in the elite residential market of the UK.
Another problem that have arisen including under the influence of foreign investment, is the rapid growth of property prices in the country, which made the purchase of the property unavailable for a large part of the domestic market. The British refuse to purchase their own homes and continue to rent, postponing purchase "until better times."
It is expected that in the next few months the changes in the legislation concerning the Tier 1 Investor will be a constant topic of discussion in the Parliament.
Based on materials of propertyshowrooms.com
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