The number of billionaires buying homes in London dropped by 25% in 2024 due to changes in Stamp Duty, the ‘non-dom’ regime, and the UK General Election, according to a report by Beauchamp Estates.
The survey found there were 40 sales of luxury properties priced over £15m, totalling £856.5m, compared to 54 in 2023, worth £1.3bn.
The market for high-value homes in London was driven by international buyers in their late 20s to mid-40s, as younger investors took a long-term view on property.
These buyers preferred ready-to-live-in homes and mostly bought new apartments or extensively refurbished houses.
This trend caused a decline in sales of second-hand luxury homes needing renovation.
For new-build apartments, there were 10 sales in 2024, totalling £212.7m, down from 19 sales worth £385m in 2023.
The average apartment size was 4,260 square feet, with prices averaging £4,766 per square foot, a premium due to their new-build status.
The decrease in apartment sales was due to a limited supply in popular areas, such as Mayfair, and market disruptions from tax and political changes.
The sale of houses priced over £15m fell by nearly 15%, the number dropped from 35 in 2023 to 30 in 2024, with sales worth £643.8m.
The average house size was 8,382 sqft, roughly 445 sqft smaller than those sold in 2023.
Transactions involved 26 homes valued between £15m and £25m, and 14 homes above £25m, including two sold for £60m.
Notably, no properties topped £100m in 2024.
About 75% of deals were cash purchases, up from 70% the previous year.
American buyers made up 25% of the super-prime market, up from 18%, leading ahead of Middle Eastern buyers at 20%, up from 18%, while UK buyers fell from 12% to 10%.
Similarly, Eastern European buyers dropped from 13% to 8%, as the ongoing Russia-Ukraine war impacted numbers.
Western European buyers declined from 6% to 5%, while Indian/South Asian buyers decreased from 23% to 20%.
Chinese and Hong Kong buyers increased from 10% to 12%.
Mayfair emerged as the most favoured area, accounting for nine sales over £15m, up from 8 the previous year, including a £60m off-market deal.
Chelsea saw six such deals, up from four, including a notable property swap involving fashion billionaire Tom Ford.
St John’s Wood also saw an increase, with six deals, up from two.
Meanwhile, Kensington had five deals, down from seven, and Notting Hill had three, up from two.
Knightsbridge had a steep decline with just two transactions, down from eight, suffering from an excess of outdated properties.
Belgravia also saw a drop, with only three deals compared to 13.
Hampstead and Regent’s Park each had one deal, affected by a decrease in interest from Eastern European buyers.
The gap between average asking and achieved prices widened to -7.12% in 2024 from -5.6% in 2023.
Beauchamp Estates forecasts that in 2025, property values in Mayfair will rise by 1% to 2% for new and newly refurbished homes, while prices in Knightsbridge, Belgravia, and Hampstead may soften by -2% to -4%.
Jeremy Gee, managing director at Beauchamp Estates, said: “During 2024 American and Middle East buyers accounted for almost 50% of super-prime sales across the London’s most prestigious addresses.
“Mayfair was the top performing trophy home address in the capital during 2024, favoured by wealthy buyers from the Middle East, America and India.
“Chelsea and Notting Hill, both popular with American buyers, also performed extremely well. Stamp Duty, Non-Dom changes, the Election and new Labour government have disrupted the sales market.
Gee added: “Over the next four years the wave of American buyers into London looks set to increase further.
“Last time Donald Trump was in power we saw a significant 20% upturn in wealthy Democrats buying £15 million plus homes in London to live out the first Trump administration.
“Since June 2024 onwards we noticed a 30% rise in overseas clients enquiring about suitable homes in the capital that they could purchase, and the largest group of buyers have been Americans.”
Paul Finch, director and head of new homes at Beauchamp Estates, said: “A key reason for this year’s significant upturn in American and Middle East buyers in London is the exchange rate advantage that Americans and Middle East buyers benefit from using dollars to buy homes in the UK capital.
“Back in 2016 American buyers effectively benefitted from a 7% price discount due to the strength of the US dollar against the pound. In 2024 this has grown to an 18% price discount.
“The exchange rate benefit is similar for Middle East buyers, since the Qatari and Saudi Riyal and UAE Dirham shadow the US dollar, so Gulf buyers have also seen their buying power dramatically increase due to exchange rate shifts.”
