Non-doms are leaving the UK however holding on to their London properties, in accordance with Knight Frank.
Beneath the previous guidelines, non-doms may reside within the UK with out paying tax on abroad wealth.
New rules are tighter, which is driving extra rich individuals to reside in international locations like Italy, which has an annual flat tax that ringfences abroad belongings.
Stuart Bailey, head of prime central London gross sales at Knight Frank, stated: “Whereas there may be proof of non-doms leaving London and taking their tax {dollars} with them, it doesn’t imply they’re essentially promoting up.
“Many are holding their property due to London’s long-term credentials in comparison with different components of the world.
“In some instances, they’re renting out their properties as a short-term possibility and searching past the following 4 years of the present authorities.”
Property listings within the first half 2025 had been skewed in direction of the lower cost 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 improve 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 mean time within the lettings market. We’ve got the Renters’ Rights Invoice on the horizon however there may be hypothesis that it might be delayed.
“These landlords which are making an attempt to promote are discovering they aren’t essentially in a position to take action rapidly as a result of there may be a lot inventory round. Plenty of them are due to this fact bouncing between lettings and gross sales and again once more after failing to get their asking worth.”
