Tax: the homes, the companies and the offshore havens

Some 80,460 homes across England and Wales are registered to companies located in offshore tax havens.

They are worth an estimated £39.8 billion.

Companies in the British Virgin Islands have the most valuable stock,  it by volume Jersey is the biggest hotspot.

Some 21,602 properties are owned through companies registered in Jersey, surpassing the British Virgin Island total of 20,777.

The next five biggest tax havens that own property in England and Wales, both by value and volume, are Guernsey (£5.50 billion and 12,877), the Isle of Man (£4.49 billion and 10,393), Luxembourg (£1.07 billion and 2,446), Singapore (£908.13 million and 2,030) and Hong Kong (£851.09 million and 1.632).

In terms of tax havens where companies are  currently buying up property, the Cayman Islands tops the list.

The number of properties owned by companies registered to the Caribbean-based British Overseas Territory has increased by 66 between August 2022 and August 2023, a jump of 4.8 per cent.

In second place comes Ireland, with 4.4 per cent more homes, followed by France, with a 4.2 per cent increase.

At the other end of the spectrum overseas ownership has fallen from companies in Bermuda by 19.5 per cent.

The research was commissioned by the Stripe Property Group and managing director James Forrester says: “The government has failed in its remit of building enough homes to address the housing crisis and as a result, many potential buyers have seen their aspirations of homeownership pushed far out of reach due to record rates of house price growth in recent years. 

“So they can be forgiven for feeling a tad aggrieved at the fact that there is a substantial level of homes owned by offshore companies located in tax havens.

“Despite being located halfway round the world and not subject to domestic tax laws, companies in the British Virgin Islands own housing stock worth a staggering £13.23 billion.

“While such practices are ‘legal’ under the letter of the law, you would think that the provision of housing stock for the domestic population would be the government’s first priority and they would curb the ability for such practices to take place. 

“In tough economic times such as these, they should at least make sure those who own property remotely pay their fair share to ensure they’re on an even playing field with domestic buyers, while also contributing to the tax coffers.”

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