Sandbanks property developer closes after Labour's tax raid
Richard Carr said tax rises had ruined the second home market in the Dorset town, leaving him no choice but to shut.
Fortitudo, which sold a single plot in Poole for £16 million in November last year, has ceased trading in the high-end property market, closing its website and clearing out its offices.
A different part of the business will continue to sell commercial property, including roadside retail and student accommodation
Mr Carr, the chief executive, described the current economic climate as 'absolutely terrible for developers'.
He said he could not sell 'anything' after the Government allowed local councils to charge double council tax for second homes.
This power was introduced by the Conservatives in 2023 as part of the Levelling Up and Regeneration Act and came into effect in April this year.
Since April 1, the Lib Dem-led Bournemouth, Christchurch and Poole council has made use of the power.
Celebrity residents
The average property price in the 0.39-sq-mile peninsula crossing Poole Harbour was £1.73 million over the past year, making it one of the most expensive places in the world to buy a house.
Well-known former residents include Liam Gallagher and Harry Redknapp.
Mr Carr said: 'Residential property is very, very difficult to sell, particularly high-end property, and so we have decided to shut the businesses as it was. We closed it because we just can't sell anything, can't make any money.
'If you talk to estate agents – we had nine properties on, ranging from £1.4 million to £2.8 million – and there are just no buyers. The only way you could sell them was by heavily discounting them.
'Labour have brought in double rates on second homes. A lot of homes in Sandbanks are second homes so all of a sudden that second home market has all but evaporated.'
Mr Carr said some ongoing Fortitudo projects had been handed to another developer to complete, while he would finish others himself.
He added: 'We all know there's tax rises coming again in November and there's a real lack of confidence in the market. I see no light at the end of the tunnel...'
Wealth tax 'could create brain drain'
Mr Carr said a potential wealth tax would worsen the situation by leading to a 'brain drain' in which wealthy entrepreneurs would leave the country.
Speculation that Labour might bring in such a tax has been mounting after Lord Kinnock suggested the Government was 'willing to explore ' the option.
The party's former leader said a 2 per cent tax on assets worth more than £10 million could raise £10 billion a year for the Treasury, prompting some of Labour's union paymasters to back the idea.
On Monday, a No 10 spokesman refused to rule out the idea of a new levy on wealthy taxpayers.
Mr Carr's two previous companies, Future 3000 and Ravine Lifestyle, collapsed in 2008 and he was declared personally bankrupt.
He was prevented from becoming a company director again for 10 years without a court's permission.
Bournemouth, Christchurch and Poole council and the Ministry of Housing, Communities and Local Government have been approached for comment.
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