Has London’s billionaire’s property market come off the boil?
Worries of Labour's tax plans mean many ultra-wealthy buyers who would normally buy big houses are purchasing pieds-a-terres instead.
A survey by London estate agency Beauchamp Estates has found that concerns over Labour’s tax plans are persuading many wealthy London property buyers to instead look elsewhere in places such as Dubai or buy smaller and cheaper homes.
During the first six months of 2024 sales fell for ultra-prime homes (above £15 million) in Prime Central London by 12% to £731 million when compared to the same period in 2023 (£829 million) or a drop of around £100 million. There has also been a marked reduction in those buying investment properties in London.
Although buyers have been active they’ve been spending less, with the number of sales rising from 45 to 46 when compared to 2023.
Pieds-à-terre
Beauchamp Estates say uncertainty over a Labour Government and its likely changes to taxation and stamp duty means ultra-wealthy buyers are not seeking permanent homes in London but are instead looking for pieds-à-terre.
They are now buying homes in Dubai, the French Riviera and Miami instead, where prices are rising faster and there is more certainty over taxation.
The report notes that although there is still an appetite amongst the world’s super-rich for buying homes in London, the new Labour government needs to be mindful that too much taxation and regulation could make buyers choose to invest elsewhere, as they already are, and that they should focus on keeping London a highly attractive place to live, invest and do business.
Avoid any attempt to introduce Capital Gains Tax”
Jeremy Gee, Managing Director of Beauchamp Estates (main picture), says that: “We need interest rates to come down and the UK capital to welcome wealthy people from around the world to live here and invest.”
And he warns Chancellor Rachel Reeves to, “Avoid any attempt to introduce Capital Gains Tax on principal residences and additional taxation on second homes”.
The survey is a special mid-term edition of the annual Billionaire Buyers in London survey by Beauchamp Estates which looks at sales of luxury residential properties using data from both LONRES and Beauchamp Estates.
