ABSTRACT
The war had an immediate impact on property investment income, due to legislation which raised income tax on rental income, and necessitated the payment of War Damage Contributions and capital expenditure on air-raid shelters. Jackie Phillips, one of the most prominent inter-war property developers, was made bankrupt by the sudden downturn in the property market following the declaration of war, and died in poverty on Christmas Day 1939. Despite the extreme political and economic uncertainty which resulted from war-time conditions, and the physical danger to property from Hitler's bombs, a number of far-sighted entrepreneurs began to purchase property during the war. The rationale behind such investment was simple; if the Allies were victorious property values would appreciate substantially during the post-war recovery, while if the Germans invaded Britain it would be of little importance where they had invested their money.
