U.S. buyers are taking advantage of the falling prices for high-end homes in the U.K. capital
By Anvee Bhutani
LONDON—There has never been a better time to buy a London mansion, and Americans are swooping in.
Sales of high-end homes in the U.K. capital have dropped sharply as new tax policies put off wealthy international buyers, pulling prices lower and leading to a glut of supply.
U.S. buyers aren’t deterred. Americans now form the largest demographic of overseas buyers in London, accounting for 25% of prime purchases in the city last year, up from 18% in 2023, according to Beauchamp Estates, a luxury real-estate agent.
“Americans are taking advantage of the markets being relatively flat,” said Ugo Arinzeh, an American real-estate consultant based in London. Arinzeh recently secured upmarket homes for U.S. buyers in the city’s Knightsbridge and Bloomsbury areas.
Real-estate agents say they have never had as many inquiries from U.S. clients, prompted by favorable exchange rates and political concerns back home.
Despite slower business, “Americans have buffered that dip in the market,” said Jo Eccles, managing director of Eccord, a London-based broker.
U.S. buyers historically tended to rent for up to five years before putting down roots, but now they are opting to buy after only a year, Eccles said. She recently closed a deal on a $40 million house in Notting Hill for an American client and is actively searching for another property in the same price range.
Americans have long been drawn to London and typically cluster in elite neighborhoods like Kensington and Chelsea that have featured in movies and television shows. Prospective buyers are drawn by the English language, a high quality of life, safety and convenient access to the rest of Europe, real-estate brokers say.
Now U.S. buyers are getting more for their money too. According to data from Knight Frank, $1 million now buys 365 square feet in London, compared with only 247 square feet a decade ago. Prices are also cheap relative to other global cities. By contrast, buyers get less space per $1 million in cities like Geneva and Singapore, the data show.
London’s high-end homes market has been hit by the U.K. government’s decision to abolish a tax rule that allowed foreigners living in the country to pay tax only on what they earn domestically. It isn’t clear how many wealthy people have left or plan to leave the U.K. because of the change to the so-called “non-dom” rules, and estimates vary widely.
The U.K. has also increased stamp duty, a one-time tax levied on buying a property, which has made residential real estate less attractive to investors.
Sales of London properties worth more than $10 million dropped by 37% in the first quarter, according to Knight Frank.
A dearth of transactions has, in turn, led to price cuts. On properties worth £5 million-plus—roughly $6.7 million—there have been 45% more price reductions between January and May, compared with the same period last year, according to LonRes, a real-estate data provider.
“This is an extraordinary buyer’s market,” said Camilla Dell, founder of buying agent Black Brick, who has been working in London’s real-estate market for 25 years. “We haven’t been paying asking price.”
U.S. buyers are largely undeterred by U.K. tax changes. Americans are accustomed to paying large property taxes, and have long been taxed on their worldwide income and gains regardless of residence.
President Trump’s election has further spurred American interest in relocating to London among those unhappy with the president and his policies, real-estate agents say. There has also been growth in a new type of American buyer: young entrepreneurs who got rich in tech or crypto.
The bulk of U.S. demand comes from a mix of family relocations, people looking to add to their international property portfolios and those after classic pieds-à-terre residences.
Historic buildings are in demand. Americans comprise the largest demographic of buyers at the OWO, a building that once served as Britain’s War Office. The redeveloped site houses a hotel and dozens of private apartments, which can cost up to $26 million.
“There is a deep seam of history that runs through [the building]—buyers really appreciate that, and want to own a piece of history,” said Charlie Walsh, the OWO’s head of residential sales and marketing.
Other recent developments in the city, including Shard Place and The Whiteley, say they have seen a rise in interest from U.S. buyers too.
Would-be American buyers do face challenges: Highly desirable homes sell quickly, agents say. And the dollar, while still historically strong versus the British pound, has weakened of late.
Gary Hersham, owner of Beauchamp Estates, had a buyer interested in a home that was going for around $21 million. But when the value of the pound rose, the cost of the home in dollar terms went up to about $23.5 million. “The buyer wants to drop the price by at least a million,” he said. “The perception is there is a bargain.”
Still, many London-based agents say they expect to be doing brisk business with U.S. clients for the foreseeable future. “It’s not a case of if they buy in London, it’s a case of when,” Eccles said.
