As Prime Minister Theresa May prepares to impose higher taxes on foreigners looking to buy properties in the UK, high-end and luxury homebuilders are potentially facing a real challenge. Overseas buyers account for roughly half of all residential transactions in central London. UK developers are already struggling to cope with the sluggish demand amid Brexit, a cooling property market and prospects of higher interest rates. London’s stock of unsold homes under construction is at a record, and shares of homebuilders have slumped this year. Some analysts feel that further taxes on international buyers sends out a conflicting message about post-Brexit Britain being ‘open’ to the world. Stamp duties on individuals and companies who are currently not paying tax in the UK may be increased to a figure of 1 to 3 per cent. The move will likely add pressure on the country’s property market, with analysts saying that forecasts may have to be reviewed downwards. The announcement of Brexit has already caused house prices to fall by the largest decline in almost a decade in July. The policy of increasing stamp duties for foreigners, while well-intentioned, may drive away foreign demand while not making it any cheaper for local residents.