Resilience of Super-Prime London Property Market Amidst Tax Reforms
Reports from Christie’s International Real Estate on March 21, 2025 show that London’s super-prime property market, with prices over £10 million, holds strong even after new tax rules. Government changes ended tax relief for some wealthy foreign buyers. Buyers in this market did not slow down. Instead, high-value property deals grew.
Positive Outlook Despite Tax Changes
In an interview with City AM, Christie’s co-founders Mike Golden and Thad Wong dismissed worries that ending non-dom tax status would lower demand. They pointed out that later in 2024, super-prime transactions doubled compared to the same time in 2023. Golden said, “I don’t think changing the non-dom rules was a good move, yet the opposite is happening.” He explained that many international ultra-high-net-worth individuals buy in this market. They feel less strain from rising interest rates and ongoing global economic shifts.
A “Boring but Solid” Environment
Last October, the Chancellor of the Exchequer introduced tax changes so that UK residents pay a fair share. Estate agents feared that very high-priced properties would lose buyers. Golden noted that the UK shows steady and predictable policies. He mentioned, “I wouldn’t be surprised to see more people buying in the UK, seeing it as ‘boring but solid’.”
Many see London real estate as a safe bet. This view comes as the UK market does not follow the same path as the US, where economic doubts and stock market swings make investors cautious.
Market Performance and Future Prospects
Christie’s success in the luxury property market shows its strength compared with other agencies like Sotheby’s International Realty. The firm has grown since it received licensing rights in 2021, now working with new partners and entering fresh markets.
In 2024, Christie’s managed key deals such as the sale of a prime beachfront island for $152 million (£117 million) and the sale of Bridehead Estate in Dorset for about £30 million. Knight Frank found that London’s super-prime market has returned to levels seen before Brexit. A long drop after Brexit and the COVID-19 pandemic now seems to end.
Key Observations
- London’s super-prime market stays safe from wider economic worries. Its buyers, many of whom are ultra-high-net-worth individuals, show strong financial backing.
- Public policy shifts in tax have not cut interest in high-value properties as some expected. Recent data shows a renewed market.
- Many in the UK see London property as a steady choice when other regions face financial risks.
Conclusion
The super-prime London property market adapts quickly and performs well in a shifting economy. High-net-worth buyers continue to invest despite financial changes. While challenges still exist, London’s stable market helps both new and existing investors feel secure.
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