'World's rich are turning London into capital of inequality and tax evasion'

 
Belgravia: Cohen says the neighbourhood has already been turned into a “mausoleum” reserved “for the occasional use of the globe’s peripatetic rich”

London is being "skewed in dangerous ways" by the world’s rich using its property market to dodge tax and make money, an award-winning New York Times columnist has claimed.

Roger Cohen, who recently left London after living here for five years, warns that the use of “real estate as investment and tax dodge” instead of homes is a “life-sucking force” that is blighting the capital.

He claims that the trend has already turned Belgravia into a “mausoleum” reserved “for the occasional use of the globe’s peripatetic rich” and that there is a “reek of something amiss … and wrong” on London’s streets.

In an article for his paper, Mr Cohen also claims that London is a capital “of inequality and tax evasion” in a wide-ranging critique that will reinforce concerns highlighted by David Cameron’s warning about the use of London property by money laundering criminals.

Mr Cohen, who grew up in London before beginning a career as a foreign correspondent, emphasises in his assessment that there is much to praise about the capital.

He says that it is “the most open metropolis in Europe by far” and has canals and parks that can create an atmosphere of “perfection” on a summer evening.

He also praises London’s cycle lanes and Boris bikes, as well as other aspects of its transport system, and highlights its food and mix of nationalities as other attractions.

But his article focuses most on the impact of the international rich on the capital with Mr Cohen arguing that “something in its core is rotten” as he sets out the problems that London faces.

“London is skewed in dangerous ways,” he writes. “House prices keep jumping. Cranes are everywhere, hoisting new luxury developments into being. The capital has become a glittering enclave in a country often resentful of its dominance.

“London is a capital of culture, but also of inequality and tax evasion.”

Mr Cohen adds: “The world’s money, not Britain’s, now determines how London looks, sets it apart from the rest of the country, and defines what it is. Belgravia is still Belgravia. On closer inspection, however, it resembles a mausoleum reserved for the occasional use of the globe’s peripatetic rich and their ample staffs.

"Real estate as investment and tax dodge, rather than as dwelling, is a life-sucking force. Georgian mansions of cream-colored splendor sit there, empty much of the time, with a banner to the great unwashed on their shuttered windows proclaiming: Stay out!”

Mr Cohen writes “oligarchs and crony capitalists” from countries such as Russia and China are among those who are using London as a safe haven for their money. He adds that others include “wealthy Greeks” and others seeking to escape economic problems in Europe.

His warning comes after the Prime Minister used a speech in Singapore to promise reforms to unmask the owners of overseas companies that are buying London property using “plundered and laundered cash”.

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