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Tax change to hamper UK property market, says Pierre & Vacances

The UK property market is set to suffer as the abolition of 3 per cent annual tax will see offshore funds redirected to France, says French tourism property developer and manager Pierre & Vacances.

It says the imminent removal by France of the annual 3 per cent tax on the gross value of French property applicable to investors in Jersey, Guernsey and the Isle of Man will considerably widen the property market for direct investment and may threaten any nascent stabilisation in the UK property market.

Pierre & Vacances property investments UK & Ireland head Nick Leach says: “We are already seeing a rise in enquiries from these offshore territories, as private and corporate investors ready themselves in anticipation of the 3 per cent tax being formally removed. We are bracing ourselves for a sharp flurry of activity, as tax changes can always be reversed and investors will not want to miss out.”

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