Tax on overseas buyers sees pre-sales of London homes drop 33%

Demand for London homes under construction has slumped by 33% in the first quarter as a new tax on overseas buyers and high values damped demand.

The number of homes sold prior to completion in the UK capital fell to 5,947 from a record high of 8,927 a year earlier, according to data compiled by Molior London that was seen by Bloomberg News.

Molior has declined to comment.