London property faces supply squeeze as taxes and planning rules scare off developers – The National

London property faces supply squeeze as taxes and planning rules scare off developers – The National

Property market professionals are predicting central London faces a supply squeeze on new-build luxury homes as rising taxes, complex planning regulations and a shortage of land deters developer investments.

While sales of luxury residential properties have soared in recent months as Covid restrictions ease and overseas buyers, including from the GCC, return to the market, demand is already outstripping the supply of homes with predictions the situation will cause prices to surge.

A shortage of plots to develop and the prospect of corporation tax rising from 19 per cent to 25 per cent in April 2023 is also alarming developers, who will also be hit by the residential property developer tax.