Non-doms are leaving the UK however holding on to their London properties, in response to Knight Frank.
Below the outdated guidelines, non-doms might stay within the UK with out paying tax on abroad wealth.
New rules are tighter, which is driving extra rich individuals to stay in nations like Italy, which has an annual flat tax that ringfences abroad property.
Stuart Bailey, head of prime central London gross sales at Knight Frank, stated: “Whereas there’s proof of non-doms leaving London and taking their tax {dollars} with them, it doesn’t imply they’re essentially promoting up.
“Many are protecting their property due to London’s long-term credentials in comparison with different elements of the world.
“In some instances, they’re renting out their houses as a short-term possibility and looking out past the following 4 years of the present authorities.”
Property listings within the first half 2025 have been skewed in the direction of the cheaper price brackets in prime central London.
The variety of new gross sales directions within the first six months of the yr in prime central London (PCL) was 32% greater than the five-year common (excluding 2020), although above £5 million there was an equal enhance of 14%.
Common costs in PCL fell 2.5% within the yr to June, which was the widest decline since April 2024 and the second largest fall since March 2021.
In the meantime, costs in prime outer London (POL) rose by 0.9% within the yr to June, the place demand is pushed by home and needs-based patrons, are being squeezed by greater ranges of provide.
Gary Corridor, head of lettings at Knight Frank, added: “There’s a sense of limbo in the intervening time within the lettings market. We have now the Renters’ Rights Invoice on the horizon however there’s hypothesis that it may very well be delayed.
“These landlords which can be attempting to promote are discovering they don’t seem to be essentially ready to take action shortly as a result of there’s a lot inventory round. A lot of them are subsequently bouncing between lettings and gross sales and again once more after failing to get their asking value.”
