Foreign owners of UK property will be required to register their real identities in the new Economic Crime Bill the government has fast tracked following the Russian invasion of Ukraine.

The aim is to stop foreign owners from laundering ‘dirty money’ through UK property and to increase the number of Unexplained Wealth Orders (UWO) issued to oligarchs the government deems to be corrupt.

The government says the property register will set “a new global standard for transparency” and that people who do not follow the new rules will face up to five years in prison.

The UWO reforms see its scope expanded to include people who hold UK property within a trust and barriers in their use being removed.

Additionally, the Treasury intends to beef up sanctions enforcement through a more wide-ranging strict civil liability test, and the government has published a white paper detailing its plans to overhaul Companies House.

Prime Minster Boris Johnson says: “There is no place for dirty money in the UK. We are going faster and harder to tear back the façade that those supporting Putin’s campaign of destruction have been hiding behind for so long.

“Those backing Putin have been put on notice: there will be nowhere to hide your ill-gotten gains.”

Propertymark head of policy and campaigns Timothy Douglas comments: “Propertymark called on the government to introduce a public register of overseas entities owning property in the UK back in 2018 and it is high time that legislation has been brought forward.

“Despite repeated promises, including being mentioned in the December 2019 Queen’s Speech, the government failed to deliver.

“However, recent events serve as a reminder that property is a high-risk sector for money laundering because any foreign company can buy property in the UK without having a presence in the country.

“Criminal funds can be concealed and made to look legitimate through an untraceable ‘company’ and subsequently the purchasing of property. When agents try to determine the true, or ‘beneficial’ owners, they find only documents listing shell companies.

“To maintain integrity in our housing market it is vital to know who the ultimate owner of a property is and it is imperative that the register is set up as soon as possible. The longer we wait for the register, the longer corrupt individuals will be able to use the UK property market to hide their wealth.”