Central London developers reliant on overseas investors to fund new luxury apartment blocks face a fresh blow to their business model under plans to charge foreign buyers extra stamp duty.
With the prime London market already slumping, agents and analysts said the tax would accelerate a decline in housebuilding in the most sought-after areas of the capital, where about half of new homes are bought by overseas investors.
Charlie Campbell, analyst at Liberum, said the new charge, details of which have yet to be announced, would cut into prices housebuilders can charge and thus into their ability to compete for new sites.
