There’s been an inflow of mortgages issued value greater than £5 million, pushed by non-doms departing from the UK.

In 2024 there have been £3bn value of mortgages on the £5m+ mark, a 22% enhance on the earlier 12 months, based on evaluation from chartered accountancy agency Lubbock High quality

Non-doms are being changed by rich UK residents after the UK authorities introduced that they must pay UK tax on abroad earnings from April 2025.

In consequence many non-doms are relocating to Dubai, Portugal, Italy and the US, the place tax regimes are extra beneficial for rich overseas residents.

Andrew Noton, accomplice at Lubbock High quality, stated: “With extra non-doms leaving the UK market a big variety of new prime properties have been added to the market.

“Rich UK residents are actually seizing the chance to snap up these properties and transfer up the property ladder.

“These rich UK consumers are most frequently utilizing mortgages – reasonably than money – to fund purchases.

“They both choose to or must borrow the sums required reasonably than promote their down a few of their different investments or they need to fund the purchases from future revenue.

“Non-doms however extra ceaselessly paid in money. Not the entire non-doms leaving the UK are promoting their properties, many are conserving them and renting them.”

“The UK property market is seen as way more steady than many abroad residential property markets.”

The International Revenue and Positive factors (FIG) regime got here into impact on April 6 2025.

Below the brand new regime, new UK tax residents gained’t pay tax on overseas revenue and beneficial properties for the primary 4 years of their residency, no matter whether or not the revenue is introduced into the UK.

Noton added: “The brand new FIG tax remedy could be very engaging to abroad rich people.

“These people have substantial shopping for energy, however they’re primarily opting to hire first – reasonably than committing to excessive worth property purchases.”

The variety of new gross sales directions within the first six months of the 12 months in prime central London (PCL) was 32% increased than the five-year common (excluding 2020), Knight Frank knowledge exhibits.