Homes acquired with “dirty money” in the richest parts of London could be seized and turned into affordable housing under plans to crack down on oligarchs using Belgravia, Knightsbridge and Mayfair “to rinse their money”.
Labour-controlled Westminster city council is examining the use of compulsory purchase orders in extreme cases where it finds properties are not being used for their stated purpose, as part of a push to “combat the capital’s reputation as the European centre for money laundering”.
The plan faces obstacles including a lack of transparency over property ownership and a shortage of checks on the registration of companies, but the council is threatening to use seized homes to help reduce the waiting list for affordable housing of 4,000 households.
The number of properties in Westminster registered to owners in Jersey and Russia has risen by 300% and 1,200% respectively since 2010.
The council is exploring the use of a compulsory purchase order against a property registered in Seychelles, the owner of which has run up significant council tax arrears.
London council could seize oligarchs’ homes for affordable housing
Westminster could use compulsory purchase orders to tackle laundering of ‘dirty money’
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