Super-prime estate agencies across London have witnessed a sharp surge in the number of American buyers. Rather than browsing London’s super-prime market, many are making swift transatlantic trips and snapping up properties with little hesitation.
The statistics speak for themselves: In 2024, Americans accounted for nearly 50% of super-prime sales across London’s most coveted addresses. Further, four in ten £15M+ properties listed with United Kingdom Sotheby’s International Realty in London sold to American buyers. Underscoring the data are reports of A-list celebrities relocating across the pond, including Ellen DeGeneres and America Ferrera. Below, we explore why wealthy Americans have set their sights on the UK and what this means for the luxury property sector.
The “Donald Dash”
On 5 November 2024, Donald Trump made an historic comeback as the 47th President of the United States of America. This landmark event coincided with record-high citizenship applications from Americans, a phenomenon commonly dubbed the “Donald dash”.
Home Office data reveals that 6,131 US citizens applied for UK citizenship in 2024 — the highest number in two decades. The number of applications surged 40% in the final quarter of the year, reflecting a seismic post-election exodus.
Becky Fatemi, Executive Partner at UK Sotheby’s International Realty, reported an immediate reaction from affluent Americans. She shared that she received five calls from Americans soon after the election results, expressing a desire to move to the UK. In fact, one family arrived the very next day, willing to fork out £70,000 a week for a good apartment near schools. Speaking to The Telegraph, Becky commented, “That's people saying, ‘he's here, and he's here for the next four years, and I don't want to be, so these are the dates that we're flying over’."
Why the UK?
Global Appeal
In the wake of Donald Trump’s second presidential victory, Google searches for “moving to the UK” increased by 900% in America, highlighting the unique appeal of the UK. Britain offers a progressive milieu, a globally-friendly working time zone, a rich cultural landscape, and a level of international connectivity that’s difficult to match.
Further, London’s status as a global financial hub remains a major draw – beyond its economic significance, the city promises an incredible quality of life, thanks to globally acclaimed schools, world-class leisure amenities, and access to excellent healthcare.
The country’s impressive architecture, seamlessly harmonising heritage and modern-day convenience, is another standout feature.
Non-Dom Tax Holiday
The Labour government’s 2024 Autumn Budget introduced tax amendments to plug the $40 billion deficit left by the previous government. One of the key changes was the overhaul of the non-dom tax regime and its replacement with the foreign income and gains regime (FIG).
Under the current non-dom tax regime, non-domiciled citizens (UK residents whose permanent home is another country) were taxed only on their UK assets, with foreign assets taxed only if brought into the UK. However, starting 6 April 2025, the new system will adopt a residence-based model, taxing residents on their worldwide income and gains.
To ease the transition into the FIG system, non-doms will benefit from a four-year grace period, during which they will not have to pay taxes on their assets abroad, provided they have not been a UK tax resident in any of the 10 consecutive years before their arrival.
During this period, non-doms can bring foreign income into the UK at a discounted tax rate — rather than the standard 45% income tax, non-doms will be subject to only 12% for the tax years 2025-26 and 2026-27 and 15% in 2027-28.
This four-year grace period creates a strategic window for Americans looking to settle in the UK, allowing them to establish a foothold in the country while mitigating hefty taxes on foreign income.
An additional perk to this tax break is Donald Trump’s support for “ending the double taxation of overseas Americans.” At present, Americans residing abroad must file tax returns with the Internal Revenue Service (IRS), potentially leading to taxes in both the U.S. and their country of residence. If Trump lives up to his promise, Americans living in the UK will enjoy a dramatic reduction in their tax burdens.
The Weakened Pound
The pound hit a 14-month low on 18 January, closing at 1.217, and dipped again to 1.229 on 2 February. While it has largely rebounded since, the market is bracing for continued sterling fluctuations through the first half of 2025.
The precarious state of the pound comes with a silver lining, as the time is ripe for international investors to capitalise on the UK's prime property market. As of March 13 2025, purchasing a £3M townhouse in London would cost $3,879,300, as opposed to $4,028,100 in the final quarter of 2024.
Meanwhile, Trump’s tariffs have prompted fears of a vitiated market and a plummeting dollar, with the currency hitting a three-month low in March 2025. However, even with the dollar losing value, the promise of relative economic stability in the UK remains attractive to investors.
Long-Term Stability
With respect to the property market and the broader social landscape, the UK has a well-documented history of resilience and stability. This gives rise to optimism among incoming Americans who are fleeing perceived instability and an uncertain property sector.
Americans’ confidence in the UK's long-term stability is reflected in their desire to put down roots in the country — United Kingdom Sotheby’s International Realty reported that 22% of purchases in 2024 were made by parents buying homes for their children. Claire Reynolds, Managing Partner at United Kingdom Sotheby’s International Realty, shared, “The rising trend of parents investing in properties for their children’s future underscores the country’s enduring appeal as a long-term investment for the next generation.”
She added, “Americans’ love for the UK has never been stronger. The lifestyle, education system, rich culture and language make it an incredibly attractive destination for HNWIs, especially if they’re seeking long-term stability.”
