More politicians back seizure of oligarchs' London property assets

Momentum is building up in support of the government’s probe into whether the London homes of oligarchs on the sanctions list can be seized - and possibly even used to house Ukrainian refugees who reach this country.

Yesterday Estate Agent Today reported that Housing Secretary Michael Gove was considering the move, which would require legal changes to allow the state to seize property without compensation.

Now the Liberal Democrats have backed the principle of the seizures, adding that the homes could be used to house Ukrainian refugees fleeing the Russian invasion.

Alistair Carmichael, the Lib Dem home affairs spokesperson, has written to Home Secretary Priti Patel saying it was “time to freeze these assets and put them to good use”, saying this would also help keep Ukrainian refugees out of hotels or other unsuitable accommodation.”

In the letter, Carmichael called for quicker action to sanction Putin-linked oligarchs.

He wrote: “It is time to sanction them all - and freeze their assets, including any property they own in the UK. These properties should then be used to house any Ukrainian refugees, on a temporary basis, while they await permanent resettlement. Rather than languishing in hotel rooms - or worse, unsuitable barracks, we should be putting Putin’s cronies’ assets to good use.”

He went on: "For too long Putin’s cronies have treated London as their playground, buying up luxury properties as a way to launder their dirty money. Much of this property is currently sitting empty, while Ukrainian families are desperately fleeing their homeland looking for a safe place to live.”

Meanwhile a report out today from London lettings and estate agent Benham and Reeves says Russian residential property purchases in the capital contributed an estimated £190m in market value and £13.2m in stamp duty tax in 2021.

The agency estimates that 286 London properties were sold to Russian buyers in 2021.

Benham and Reeves director Marc von Grundherr, comments: “Russian activity has long contributed to the overall health of the London property market, with the might of the Ruble traditionally prevalent within prime London neighbourhoods. 

“However, Russian buyer activity still only accounts for a very marginal proportion of market activity and so while the swift implementation of economic sanctions against Russia may have a knock on effect here in the capital, they certainly won’t spur a market decline of any sorts. 

“In fact, while the expectation is that this segment of international buyers will now dwindle as assets are frozen and the Iron Curtain falls once again, the likelihood is that we may actually see an increase in Russian ownership. 

“The London market has always been a safe haven in times of crisis and with many looking to flee a free-falling Russian economy, there’s a very good chance London will be their destination of choice.”