U
S buyers are flocking to London, snapping up discounted mansions at an increasing rate. The UK capital's high-end market was hit hard by new tax policies last year, driving away international buyers. However, Americans have stepped in to fill the void, making up 25% of high-end home purchases in London - a significant increase from 18% in 2023.

    The surge in American demand is supporting the city through a market dip, with luxury real estate agency Beauchamp Estates reporting a pronounced increase in US buyers. This trend can be linked to the elimination of a centuries-old tax loophole, known as the "non-dom" rule, which allowed ultra-rich foreigners to only pay taxes on domestic earnings.

    As international buyers like those from Dubai and Milan have traded in their UK properties for others abroad, London's high-end sellers have been forced to slash prices. The surplus supply and lower prices have not gone unnoticed across the Atlantic, with US-based clients making an unprecedented number of inquiries to local agents.

    Rich Americans are drawn to London's historic neighborhoods, like Kensington and Notting Hill, which they see in movies. Favorable exchange rates between the dollar and pound also continue to boost their purchasing power. While luxury listings still sell quickly, there is now a greater selection for American buyers to choose from.

    A budget of $1 million will buy more square footage in London today than it could a decade ago, making high-end properties relatively affordable compared to other global cities like Geneva and Singapore. Local agents report that American buyers are citing rising crime, cost of living concerns, and political issues in the US as reasons for investing in UK real estate.