Sadiq Khan calls for London properties owned by Putin allies to be seized

The Mayor of London has called on the government to seize London properties owned by allies of Russian president Vladimir Putin.

Sadiq Khan accused ministers of "turning a blind eye" to oligarchs using homes in the capital "as a safe harbour ... to park their cash".

Transparency International estimates that 100 London properties worth a total of £1.1 billion are owned by Russians accused of corruption or links to the Kremlin.

Khan said the London housing market is being used as a "playground" for Russians accused of corruption or links to the Kremlin, as they tie up their money in expensive properties that are then left empty.

The mayor said overseas buyers should face a higher empty homes premium, an increase in capital gains tax from 28 percent to 40 percent and a higher rate of annual tax on companies investing in properties over £500,000.

The mayor said overseas buyers should face a higher empty homes premium, an increase in capital gains tax from 28 percent to 40 percent and a higher rate of annual tax on companies investing in properties over £500,000.

City Hall said the measures could raise up to £370 million a year, which it said could help fund 2,500 low-cost homes.

The mayor had called for a register of foreign-owned UK properties in a bid to crack down on money laundering earlier this month, ahead of Russia invading Ukraine.

"London will always be open to foreign investment and the millions of people from around the world who choose to make our city home," Khan said.

"But we must take proactive measures to insist on a greater contribution from overseas buyers, clamp down on those who look to exploit our openness, and use the money to invest in social and other low-cost homes for Londoners."

Britain hit Russia with "the largest and most severe package of economic sanctions" that the country has "ever seen", Boris Johnson said on Thursday.