Increased transparency requirements for non-UK nationals who own UK property could impair the wavering London office market.
The government rules would require the owners to name their beneficiaries.
Matthew Oakeshott, chairman of Olim property, said that transparency requirements could have a significant effect on the market.
“Central London offices are priced for paradise, off high rents and high yields, but they face a perfect storm of Brexit fears, rates revaluation and transparency issues,” he said.
He added that Savills had already moved yields out for West End offices by a quarter of a point, with Brexit fears casting a long shadow and the looming rates revaluation based on 2013 rental levels set to hit central London offices.
“The crackdown on money laundering and secret ownership will also have a disproportionate effect on central London,” he said. “If the market was priced for that, would be fine, but it’s not. London offices could easily fall by a quarter,” he said.
Oakeshott said that while not all the money for property purchases is from fronts, quite a lot is, and genuine transparency of beneficial ownership from tax havens would negatively affect the market.
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