This morning’s news, first revealed by The Times, that owners of offshore companies wanting to trade property in the UK will have to be registered on a new database that shows their ultimate ownership could have huge implications for the property industry.
Here Jonathan Goldstein, chief executive of Cain Hoy Enterprises (UK), shares his views.
“The greed and motivation among certain elements of the property industry does not mean that the government should not do what is right to ensure money laundering in the UK by international criminals or despots should be allowed to continue without any fetter.
“I don’t think anyone wants London to be a haven for money laundering by rogues and criminals. Any sensible measure that stops that from happening is to be encouraged. There is no doubt that a number of factors have led to the cooling down of the top of the [residential] market. A number of those have been government-led, such as stamp duty and non-domicile rule changes, and this will be another blow to that end of the market.
“One needs to distinguish between the London housing market, which has a fundamental shortage of units being built, and the top end of the market, in which you are talking about 200/300/400 units a year above £10m being sold, which will be the main recipients of the type of purchaser who would be worried about disclosing their identify.
“Know-your-customer regulations in transactions are now extremely extensive. KYC obligations on the professional firms means it is difficult to hide from anyone who is the ultimate beneficiary of a transaction, but that is different from putting your name on public register and saying you own a building.
“I don’t think it will have a material impact on the vast majority of the residential market, as those people play at the very top end. In the commercial market, I don’t think it will have a material impact. If buyers are kosher, they have got nothing to worry about.”
