Despite widespread speculation and fiscal reforms, London’s super-prime real estate market has demonstrated remarkable resilience. Christie’s International Real Estate (CIRE), a global leader in luxury property, reported a significant rise in high-value property purchases in the capital following the UK government’s recent decision to eliminate the long-standing non-domicile (non-dom) tax status.
In an interview with City AM, CIRE co-CEOs Mike Golden and Thad Wong emphasized that London’s luxury market is not only surviving but flourishing. “While I don’t think that changing the non-dom rules was positive, the reality is that almost the opposite has happened,” said Golden. “The market for the super prime – properties over £10 million – is thriving.”
The UK Chancellor’s decision in late 2023 to end the non-dom tax regime raised concerns across the real estate sector. However, CIRE’s data shows that the number of ultra-high-value property transactions doubled in Q4 2023 compared to the same period in the previous year.
Golden commented: “London is London. While 2023 and 2024 weren’t stellar years for real estate globally, the UK’s luxury segment has remained surprisingly strong.”
A Stable Market in an Unstable World
With geopolitical tension, interest rate hikes, and fluctuating global markets impacting investor sentiment, London’s reputation as a “boring but solid” market is becoming a strategic advantage. Unlike other destinations with more aggressive tax incentives like Italy, Portugal, or Switzerland, the UK is seen by some UHNWIs as a dependable, rule-based economy.
CIRE’s recent track record includes some of the most expensive global transactions, including a $152 million private island in Palm Beach and the historic Bridehead Estate in Dorset. In the UK, listings like the £21 million Ripley Castle estate in North Yorkshire and a £58 million Beverly Hills-style mansion show the scope of CIRE’s reach.
Thad Wong noted: “When the stock market feels shaky, fear spreads faster than optimism. That’s where a trusted market like London becomes appealing again.”
As London’s luxury real estate recovers from the long-term impacts of Brexit and the pandemic, a renewed wave of international investment could mark the end of a nearly decade-long downturn. Knight Frank reports that values have just returned to pre-Brexit levels in real terms.
