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% improve on the earlier 12 months, based on evaluation from chartered accountancy agency Lubbock Advantageous
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.
Because of this many non-doms are relocating to Dubai, Portugal, Italy and the US, the place tax regimes are extra beneficial for rich international residents.
Andrew Noton, companion at Lubbock Advantageous, mentioned: “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 – relatively than money – to fund purchases.
“They both choose to or have to borrow the sums required relatively than promote their down a few of their different investments or they must fund the purchases from future earnings.
“Non-doms alternatively extra often paid in money. Not all the non-doms leaving the UK are promoting their properties, many are protecting them and renting them.”
“The UK property market is seen as rather more steady than many abroad residential property markets.”
The Overseas Revenue and Beneficial properties (FIG) regime got here into impact on April 6 2025.
Underneath the brand new regime, new UK tax residents gained’t pay tax on international earnings and positive factors for the primary 4 years of their residency, no matter whether or not the earnings is introduced into the UK.
Noton added: “The brand new FIG tax therapy could be very enticing to abroad rich people.
“These people have substantial shopping for energy, however they’re primarily opting to lease first – relatively 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% larger than the five-year common (excluding 2020), Knight Frank knowledge exhibits.
