HNW Domestic Buyers Are Back!!

"UK-based buyers now make up 61% of the luxury market, as non-dom tax changes reduce international competition and open doors to previously out-of-reach properties"

Since the abolition of the 200-year-old non-domicile tax regime, the UK’s high-end property market—once dominated by international buyers—is rapidly shifting toward domestic investment. External reporting supports this trend. The Financial Times highlights that UK families are now capitalising on “double-digit reductions” and extended listing periods in exclusive neighbourhoods such as Belgravia, Kensington, and Knightsbridge, where prices have dipped and competition has eased.

For UK-based high-net-worth buyers, this represents a rare “window of opportunity.” Prime properties are now more accessible, particularly for those who were previously priced out. A 33% increase in listings, coupled with falling demand, has pushed median prices down from £1.5 million to £1.2 million, creating a unique buying environment for domestic investors.

The divergence in buyer behaviour is striking: local buyers prioritise value and accessibility, whereas international investors continue to target trophy assets that justify higher costs and complexity. According to JamesEdition data, domestic buyer enquiries have steadily risen since May 2023, when policymakers first began seriously exploring alternatives to the non-dom regime.

JamesEdition also reports that the growing property inventory of luxury properties over the past 12 months, combined with reduced international demand, has contributed to a notable price correction. Domestic buyers now account for 61% of luxury property activity in the UK, a 15 percent increase since the non-dom policy shift.

The increased supply of luxury homes, combined with reduced demand from international buyers, has contributed to a notable price correction. Domestic buyers now account for 61% of luxury property activity in the UK, up 15 percentage points since before the non-dom policy shift.

Buyers are rethinking their priorities. Penthouses and country houses, once a secondary pick are gaining momentum. International buyers doubled their interest in penthouses and more than doubled searches for rural estates. Domestic demand, though smaller, is moving in the same direction.

Ref: JamesEdition

As international interest wanes, UK-based high-net-worth individuals are gaining access to prime properties once dominated by global capital. Rising inventory and declining median prices have created conditions that strongly favour domestic purchasers.

This trend accelerated following the Spring Budget 2024 and continued through Labour’s electoral victory and subsequent policy confirmation, cementing a shift toward homegrown investment in the UK’s luxury property market.

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