£64 Billion in UK Property Hidden Behind Trusts: What Transparency International’s Report Means for the Market

A new report reveals that over 236,000 properties in England and Wales are owned through opaque trust structures. How does this affect compliance, reputation, and investment confidence?

According to new research from Transparency International, more than £64 billion worth of property in England and Wales is currently held via opaque trust structures. That amounts to over 236,000 individual properties, many of them in high-value locations.

Despite government efforts to clamp down on anonymous ownership, particularly following Russia’s invasion of Ukraine, the report suggests major gaps remain in the UK’s property registration regime. Trust-owned properties continue to provide cover for sanctioned individuals, tax evaders, and those seeking to avoid scrutiny.

For professionals operating in development, conveyancing, asset management, or investment, this is more than a legal technicality. It is a reputational and operational risk. The property industry is increasingly being asked to account not only for how assets are managed, but for who owns them — and how that ownership is declared.

This article explores the findings, the legal loopholes still in play, and what steps professionals may need to take next.

What the Report Says

Transparency International has tracked offshore and trust-based ownership for years. Its latest data shows:

• 236,000 properties in England and Wales are held through trust structures
• These properties are collectively valued at over £64 billion
• London boroughs such as Kensington and Chelsea are hotspots, with nearly 40 percent of overseas-owned properties linked to trusts
• Existing rules introduced in 2022 have only partially addressed the issue

The concern is that many of these trusts are used to hide the identities of beneficial owners. Unlike companies or public entities, trusts are often private, with limited disclosure requirements.

While some trusts are entirely legal and above board — used for tax planning, inheritance, or wealth structuring — others have been linked to money laundering, sanction evasion, and political corruption.

Why the Current Rules Are Not Working

In 2022, the UK government introduced the Register of Overseas Entities. This required foreign companies owning UK property to declare their beneficial owners. The register led to the exposure of assets held by Russian oligarchs and other politically exposed individuals.

However, the rules did not fully cover trusts. Many owners simply shifted assets into trust vehicles or used trust-owned companies to maintain anonymity.

Several issues remain:

• Trusts do not have to publish beneficiaries' names in most cases
• Information is held by HMRC but not shared publicly
• Enforcement has been patchy, with limited resources for investigation

As a result, Transparency International warns that the UK remains a global destination for those wishing to park wealth in property while avoiding full visibility.

The Risks for the Property Industry

While much of the media focus has been on oligarchs and foreign elites, the findings raise broader questions for the property sector.

1. Reputational Damage

Firms involved in facilitating, marketing, or managing properties linked to questionable ownership structures risk reputational fallout. This includes estate agents, lawyers, developers, and finance providers.

As media and public interest grow, there is less tolerance for "plausible deniability." Ignorance is no longer a defence.

2. Compliance and Due Diligence Costs

Anti-money laundering (AML) compliance is becoming more rigorous. Professionals involved in property transactions may be asked to investigate and verify beneficial ownership, even where structures are complex.

This raises costs and extends transaction times. It also creates potential liability if checks are not performed adequately.

3. Market Distortion

Opaque ownership can distort pricing in certain areas. Properties bought as wealth stores — rather than homes or productive assets — may sit empty or be used to inflate valuations artificially.

This damages local housing markets, undermines community cohesion, and makes affordability worse for genuine buyers and renters.

Government Response and Next Steps

The UK government has launched a consultation on expanding access to trust ownership data. Proposals include:

• Allowing regulated professionals, journalists, and NGOs access to HMRC’s trust register
• Requiring more detailed disclosures on land registry records
• Introducing penalties for inaccurate or incomplete reporting

Labour MPs and several think tanks have called for mandatory public disclosure of all property ownership through trusts, including full beneficiary details.

The Treasury maintains that it is committed to improving transparency and points to £25 billion in frozen Russian assets as proof of enforcement. However, campaigners argue that systemic change is needed, not just enforcement against individuals after the fact.

What Professionals Should Do Now

Whether you are in residential or commercial property, the direction of travel is clear. Transparency is no longer optional.

1. Review Your Risk Exposure

Firms involved in managing high-value property portfolios should audit existing clients and holdings. Consider whether any assets are linked to offshore or trust structures and what level of information is held on file.

Work with compliance teams to assess gaps in knowledge or exposure.

2. Tighten AML Procedures

Ensure client onboarding processes include detailed beneficial ownership checks, especially when trusts or layered corporate structures are involved.

Document every step of the process. Regulators will expect evidence of active and proportionate due diligence.

3. Prepare for Greater Disclosure

Assume that more information will become public in the future. Advise clients accordingly, particularly those using trusts for privacy or legacy planning. The days of owning property anonymously in the UK are numbered.

Final Thought

The UK property market has long benefited from international capital. But with that benefit comes responsibility. When billions in assets are held in the shadows, the credibility of the entire sector is put at risk.

Transparency International’s findings are a warning — and a call to action. Property professionals must prepare for a more transparent future, not just to stay compliant, but to help rebuild trust in a system that increasingly relies on public legitimacy.