LONDON
London is the hub of Europe’s luxury real estate market (which perhaps makes it the hub of the world’s), and despite a number of recent government maneuvers that impact property transfers, experts predict relative stability in the year ahead.
Several developments roiled the market in 2024. The year brought a snap election that saw the Labour Party take control of the U.K. government for the first time in 14 years; a new budget that imposed higher stamp duties on the purchase of second homes and residential investment properties; and changes to the country’s long-standing non-dom tax regime, a popular shelter benefiting U.K. residents who claim another country as their permanent home. “While the Labour victory originally brought a sense of stability beneficial to the housing market, it was short-lived. Instead, we experienced a prolonged lead-up to their first budget, accompanied by economic warnings which did little to build confidence,” explains David Ruddock, head of residential sales operations for Carter Jonas, the U.K. affiliate of Christie’s International Real Estate. “This uncertainty did affect the high-end market, with more [homeowners] looking to sell before anticipated tax hikes.”
“Buyers, on the other hand, were more cautious and preferred to wait until the budget came at the end of October. When it was released, it was generally well received, leading to a November market that was more active than normal,” he adds.
Regulatory factors will continue to impact the market in 2025, notes Shereen Akhtar, associate partner at Carter Jonas; however, international buyers who value the U.K.’s leading universities, cosmopolitan culture and stable financial system will still look to London ahead of other European capitals for luxury real estate purchases.
Ruddock agrees. “We have not seen a drop-off in people coming from overseas,” he says. “For people who were moving here to gain non-dom status, there are other reasons that are more important than the taxation piece.”
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