UK PROPERTY AND THE NEW GLOBAL ORDER

Household Cavalry pass "world's most expensive apartments" (Telegraph)

"We could view the threats and challenges we face today as the difficult birth-pangs of a new global order – and our task now as nothing less than making the transition through a new internationalism to the benefits of an expanding global society...." Gordon - "how I saved the world" - Brown 2009

I enjoyed the benefits of lunch with the FT today and, in particular, a front-page article entitled "Tax haven buyers set off property alarm". According to research by the newspaper based on Land Registry data: "At least £122 billion of property in England and Wales is held through companies in off-shore tax havens". To put this in context, the figure is "more than the total value of all housing stock in Westminster and the City of London". Just under two thirds of the property is in London, with centres like Liverpool, Manchester and Leeds also targets for this type of investment. Land Registry data do not allow a breakdown between residential and commercial property. The full article can be found at http://www.ft.com/cms/s/0/6cb11114-18aa-11e4-a51a-00144feabdc0.html?siteedition=uk#axzz398lMX18s

The government is currently in the process of privatising the Land Registry - http://civitas.org.uk/newblog/2014/06/why-is-the-government-privatising-the-land-registry/ - which may make it more difficult to unravel UK real estate ownership by off-shore vehicles in the future. However, even under present arrangements records show "only the owner or entity holding a property, not the ultimate owner of the company through which the asset is held" according to the FT. This is despite existing anti-money laundering regulations, and an announcement by the Prime Minister earlier this year that full ownership information about UK-based companies would be made publicly available.

The FT analysis cites the example of "One Hyde Park, London's most expensive block of flats" which "epitomises how the rich stash their money through off-shore companies in luxurious property that can remain empty for much of the year". A global market for this type of investment is the main reason why the near-by home of the Household Cavalry, Hyde Park Barracks, is up for sale with a price tag of £600m and prospective buyers lined up -  http://www.arabianbusiness.com/abu-dhabi-s-mubadala-considers-purchase-of-historic-london-property-report-556845.html  as reported in Arabian Business. Although one commentator on this article asks perceptively:"Aren't experts warning about London property bubble????"

Meanwhile, the FT's Philip Stephens - a Rip Van Winkle (http://en.wikipedia.org/wiki/Rip_Van_Winkle) type columnist who seems to live in a prelapsarian Blair world*, rather than the alternative universe of Gordon Brown - complains of Britain's increasing hostility to capitalists and immigrants (possibly because of our dysfuctional economy ????)

*According to another FT columnist Blair "ruled in a prelapsarian age, when faith in public figures (and, I would argue, policy) was yet to be blown apart by financial meltdown" - http://www.ft.com/cms/s/0/bedfb93c-10c5-11e4-812b-00144feabdc0.html#axzz398lMX18s