Soho Estates, the London property group founded by the late Paul Raymond, recorded its highest rental income to date in the year ending March 2026, returning to profitability after three consecutive years of losses. The company, which owns a significant portfolio of shops, bars, and restaurants in London’s theatre district, reported a 4 percent increase in revenues to £45.2 million, surpassing the previous record of £43.4 million.
The estate is owned by Raymond’s granddaughters, Fawn and India Rose James, who inherited the business following his death in 2008. Their ownership comes after a tumultuous family history, including the death of their mother, Debbie Raymond, in 1992. Fawn James, 40, now serves as the group’s chief executive and assumed operational control from their father, John James, last year, while India Rose James is not involved in the firm's management.
Soho Estates’ rental income growth was supported by strong demand across a diverse tenant base. The company’s portfolio includes prominent properties such as Ronnie Scott’s jazz club, Kettner’s restaurant and hotel, and the Ilona Rose House office building, which marked its first full year of contribution to income. The opening of Market Place Food Hall in Leicester Square during the 2025 holiday season also bolstered revenues, even as the iconic G-A-Y bar closed and was quickly replaced by another nightclub, Coven.
Fawn James described the company’s approach to property management as focusing on maintaining a dynamic blend of leisure, retail, and office tenants to preserve Soho’s vibrant character. She emphasized the importance of tenant diversity in supporting steady rental growth and the broader vitality of the area.
Paul Raymond built his property empire largely through strategic acquisitions dating back to the 1960s. It began with the purchase of the Raymond Revuebar strip club’s freehold in 1960 for £14,000, followed by opportunistic purchases during a property market downturn in the late 1970s, at times acquiring more than one freehold weekly.
Meanwhile, speculation continues around the UK government’s plans to raise capital gains tax (CGT) to bolster public finances amid mounting economic pressures. Chancellor John Healey is expected to outline fiscal policy in his upcoming budget scheduled for October 28. Recent analysis suggests that any increase in CGT rates should be accompanied by inflation relief to prevent undue tax liabilities on gains driven by price rises rather than real profits.
Tax experts caution that without adjustments for inflation, higher CGT rates could discourage asset sales, potentially reducing overall tax revenues. While some advocate for matching capital gains and income tax rates to enhance fairness and raise government income, others warn that this could complicate the tax system further, especially if an inflation allowance is reintroduced.
The government’s fiscal headroom, currently estimated at around £11.3 billion, has been eroded significantly since geopolitical tensions in the Middle East began, with higher borrowing costs and rising welfare expenses exerting additional strain. Economic forecasts note that prolonged disruption in global energy supplies could elevate inflation to 6 percent and transform fiscal surpluses into deficits by 2027, underscoring the challenges facing UK public finances.