A growing exodus of non-domiciled residents is reshaping London’s ultra-prime housing market, with new data from Beauchamp Estates revealing that around 70% of £15 million-plus homes sold in the capital so far this year were offloaded by non-doms relocating overseas.

The mid-year Billionaire Buyers in London report from the luxury agency shows that in the first half of 2025, sales of homes above £15 million reached £694 million, down 13% from the same period in 2024, and significantly below the £1.03 billion recorded in H1 2023.

But it’s not just a market cooling: it’s a change in who’s staying, and who’s leaving.

HOUSE SWAPPING

Beauchamp Estates attributes the turnover in part to an ongoing “house swap” trend, with a notable wave of ultra-high-net-worth individuals leaving the UK for more tax-favourable or lifestyle-driven destinations such as Dubai, Milan, Monaco, Miami and the South of France.

While these Non-Dom vendors are cashing in on their principal London residences – many averaging over 9,000 sq ft – they are not cutting ties completely. Most are retaining a pied-à-terre in the capital to maintain access.

ESSENTIAL LOCATION

Gary Hersham, Founding Director of Beauchamp Estates, said: “A fascinating ‘house swapping’ process has unfolded in the UK capital with a wave of non-doms relocating to Dubai and Abu Dhabi and a return wave of Emirati buyers purchasing large residences in London.

“London remains an essential location for multi-millionaires and billionaires to buy and have a home as part of their global property portfolio.”

These moves come against a backdrop of changing tax treatment for non-doms and growing regulatory scrutiny of international wealth in the UK. While the report does not speculate on political causes, the timing aligns with increased discussion of reforming the non-dom regime.

FILLING THE VOID

As wealthy sellers leave, new international buyers – mainly from the US and Middle East – are filling the void. Beauchamp Estates notes that American and Gulf buyers accounted for half of all £15 million-plus sales in the capital in H1 2025, up from 45% last year.

Jeremy Gee, Managing Director of Beauchamp Estates, added: “The current marketplace has become the ‘new normal’ with the present tax regime and economic conditions unlikely to change in the short to medium term.

“We have seen a marked upturn in sentiment since viewed in a global and historical context London property is looking like a good buy.

“With the market levelled out both vendors and buyers have become more flexible on pricing and sales negotiations and as a result we have seen a steady rise in transactions.”

And he added: “For vendors wanting to sell the keys to success are competitive pricing, a refurbished/new product and outstanding dressing/presentation.

“With London prices now below their 2014 values and a significant supply of trophy homes available for sale discerning domestic, Gulf and US buyers have seen a ‘once in a generation’ opportunity to acquire a large family home in the UK capital.”

TRANSACTION DIP

Despite the dip in transaction volume – 27 sales in H1 2025 compared to 46 a year earlier – buyer appetite for best-in-class homes has kept values high.

The average deal this year was worth £26 million, up from £16.5 million in 2024, driven by demand for turn-key, fully finished homes in areas like Chelsea, Mayfair, Kensington and Notting Hill.

Beauchamp Estates has handled over £300 million in deals so far this year, including a £22 million sale of the former Icelandic Embassy on Park Street (main picture) and landmark residences on Cheyne Gardens and Chester Street.

While many wealthy non-doms may be departing, the global elite still sees London as an indispensable part of their property portfolio, even if it’s no longer home