Record number of Americans are moving to the UK – What does this mean for London’s property market?

According to a recent report in The Times, around 25% of London homes in the super-prime category, featuring properties valued at over £15m, were purchased by American buyers last year. With a 7% YoY increase from 2023, it is evident that wealthy Americans are taking more interest in some of the Capital’s top-tier residences. What does this mean for the London property market, and do we have more savvy Americans moving to the UK?

Growing interest from across the Atlantic

From owning top Premier League clubs such as Chelsea FC, Liverpool FC, Manchester United and Arsenal to investing in affluent London neighbourhoods like Chelsea, Notting Hill, Regent’s Park and Kensington, American investors have an interest and the finances required to acquire the best that English football and properties have to offer. Led by fashion billionaire Tom Ford, who purchased a stunning £80m mansion in Chelsea, US nationals accounted for nearly 12% of the residences purchased by overseas buyers in Prime Central London (PCL) during the last quarter of 2024.

Increase in US-UK immigration

According to the latest data from the UK Home Office, the number of US citizens applying for UK citizenship increased by 26% in 2024 compared to the applications received in 2023. Primarily driven by the 40% increase in the final quarter, the number of US applications was also the highest since the department started maintaining records almost two decades ago. Part of a larger global trend, the increase in US applications is still just a fraction of the over 250,000 applications the UK received last year.

Tax reforms and a changing political landscape

Many UK immigration law firms reported a spike in American applicants in the second half of 2024, immediately after the US election and the start of Donald Trump’s second term in the White House. Changes to the ‘non-dom’ tax status will make it challenging for UK residents with a primary domicile outside the country to retain non-taxable foreign income, which is another reason cited by immigration experts for the sudden surge in applications. The UK’s relatively affordable healthcare and a lower rate of gun violence are some of the on-ground reasons quoted by US applicants seeking UK citizenship.

Drawn to the leafy village charm of London

Whether it’s picturing Tom Cruise sharing a pint with David Beckham at a famous gastropub in Notting Hill or other celebrities like Taylor Swift and Sarah Jessica Parker frequenting the Gatehouse pub in Highgate, US buyers are highly interested in traditional English homes across affluent postcodes. Prestigious areas such as Hampstead, Westminster, Mayfair, and Belgravia also have many properties registered to US expats in London, owing to their central location and access to top lifestyle opportunities.

As per a report in The Times, The Holme in Regent’s Park, previously owned by Saudi royalty, was recently sold to an American tech billionaire for nearly £139m. The 40-bedroom Georgian-style mega-mansion, also known as the White House of Regent’s Park for its design resemblance to the US presidential residence, was listed in 2023 for a whooping £250m.

US-influenced luxury rental boom in PCL

In addition to acquiring prime real estate in sought-after central London locations, American renters are also contributing to the growing rents in the city. According to a recent PCL lettings survey, US nationals also represent the largest overseas tenant group in these pricey and exclusive neighbourhoods. With a 4.7% YoY increase in lettings transactions, the total value of long-let transactions in PCL was almost £380m last year.

Short-term rentals in prime areas like St John’s Wood and Bayswater also saw significant growth as weekly rents surged by 34%, averaging almost £2,740 per week. A five-story, 8,000 sqft house in Notting Hill rented out for £45,000 per week was the highest short-let deal of 2024.

Investing with Benham and Reeves

While many ultra-high-net-worth American buyers and renters continue to fancy premium London postcodes, we have a wide range of new homes for sale and available to rent within these esteemed neighbourhoods. You can also read our step-by-step investment guide for more in-depth information about investing in London properties or watch our video guides for a virtual tour of some exciting areas. Furthermore, with 21 branches across the UK capital, we provide crucial advice and practical assistance to facilitate a seamless buying, selling, and letting experience. Contact us to know more.