In brief

  • Tax and policy changes - from the end of the UK’s non-dom regime to VAT on private school fees - are fundamentally reshaping how ultra-high-net-worth individuals and families approach property ownership in the UK.
  • Rather than prompting an exodus, agents report the response has been one of adaptation: families are restructuring how they own, use and manage property across multiple jurisdictions.
  • Prime central London is seeing a surge in American buyers in particular - as US citizens are already taxed on their worldwide income, the end of the UK’s non-dom regime carries less weight in their decision-making - alongside other international buyers drawn by values sitting well below their 2014 peak and the city’s enduring lifestyle appeal.
  • The buying agents we spoke to report a significant increase in high-value rental searches, as UHNW clients increasingly treat renting as a strategic choice rather than a stopgap.
  • There is also sharply rising demand for professional property management, as globally mobile clients require expert oversight of homes they occupy for only part of the year.

For most wealthy individuals, property is about far more than bricks and mortar. It is bound up with family life, financial planning, tax residency, schooling, security and legacy. But in recent years, a wave of political and fiscal change has made the question of where and how to own property considerably more complex.

The UK has been at the centre of much of this. The end of the non-domicile regime, rising stamp duty land tax, VAT on private school fees and a broader tightening of the tax landscape have all prompted wealthy families - both domestic and international - to think again about their relationship with property. Yet what we hear from leading buying agents is not a story of retreat. It is one of adaptation and, in many cases, renewed appetite.

Adapting, not abandoning

The introduction of VAT on private school fees is an example of how policy changes ripple through property decisions. Rather than driving families out of London, agents report it is prompting a reconfiguration of how they live.

“We are seeing families who might previously have moved out of London for schooling choosing to stay in the capital, where there is still a great choice of state schools, and buy a second home in the country instead,” says Mark Parkinson, Co-Founder & Managing Director of Middleton Advisors. “It means they can keep their London base and schooling, but still have a country house for weekends and holidays.”

Middleton Advisors reports a 60% increase in second-home buyers in the country, with 80% of those retaining London as their primary residence.

Middleton Advisors also reports that this adaptability extends to the way larger properties are owned and operated. Rising costs and changes to tax reliefs mean buyers are thinking about the economics of estate ownership much earlier in the process.

“In 2026, 40% of our estate enquiries have included a commercial element, compared with 30% five years ago,” Middleton Advisors notes. “Increasingly, clients are considering from the outset how a property will work for the family over the long term, rather than treating the commercial or operational aspects as something to address after acquisition.”

London through a value lens

While changes to the non-dom regime have altered the composition of demand in prime London, Camilla Dell, Managing Partner of Black Brick Property Solutions, explains that those taking a longer-term view are finding real opportunity.

Dell points to the numbers: “According to the latest Savills research, Prime Central London values are now 26.3% below their 2014 peak. For many of our clients, both domestic and international, this represents a compelling buying opportunity.”

Dell says buyers are very aware of tax, ownership structures and residency planning, but they are also being pragmatic. “Despite the negative headlines about ‘another billionaire leaving the UK’, we are busy transacting for our clients. For those taking a longer-term view, there is a growing sense that the combination of prices at a significant discount to their peak, increased negotiating opportunities and London’s enduring appeal as a global city makes the current market an attractive entry point.”

She adds: “Policy may be changing how clients buy and use London property, but it certainly hasn’t removed their appetite to own it.”

The rise of strategic renting

One of the most notable shifts in the UHNW property market is the growing role of the prime rental sector. What was once viewed as a temporary measure is now a deliberate, strategic choice for many international clients.

Black Brick has seen increased demand for its rental search service from overseas families relocating to London under the new FIG regime. “In many cases, these clients anticipate being here for three or four years and renting a high-quality family home makes considerably more sense than buying when taking the cost of stamp duty into account,” Dell explains. “Renting also gives clients time to consider if the area will work for them long-term should they decide to remain in the UK.”

Jo Eccles, founder and Managing Director of Eccord, echoes this trend. “We’ve seen a 20% increase in high-value rental searches over the last two years,” she says. “Rather than viewing renting as a short-term stopgap, it’s now often a deliberate choice and clients are approaching their rental searches with the same exacting requirements as they would have with a purchase.”

Eccles adds that this shift is also creating another option for property owners: “This is good news for high-end sellers who can't achieve the sale price they're aiming for and would consider renting out the property instead,” she notes.

Eccles highlights the role of stamp duty land tax in this shift. “To give context, our Property Search team are helping a hedge fund client acquire an £11m London home at the moment, and his Stamp Duty bill will be just over £1.2m. If he was a non-UK resident purchasing a second home, it would be £2m.”

The American wave

One trend stands out with particular clarity: the growing prominence of American buyers in the London market. It is a shift we are experiencing directly within our own Residential Property practice, where an increasing proportion of new instructions are from US clients acquiring a second home in London.

Middleton Advisors reports increased activity from US buyers, particularly in areas such as Notting Hill, the Cotswolds and Surrey. Black Brick notes strong demand from Americans for secure, highly serviced ‘lock-up-and-leave’ apartments, with branded and serviced developments such as The Whiteley proving particularly popular.

For Eccord, the numbers are striking. “Americans make up a significant proportion, accounting for approximately 40% of the buyers we’ve worked with this year - either buying London pied-à-terres or relocating here and putting down roots for work and children's schooling,” says Eccles. “As they are already subject to US tax on their worldwide income, local tax policies such as the end of the UK’s non-dom regime tend to carry less weight in their buying decisions. Political uncertainty in the US is driving demand, but lifestyle and safety are the leading reasons for our American clients buying here, as well as work-life balance, which can be much more forgiving and family-friendly, especially compared to the East Coast.”

Managing a multi-jurisdictional life

Underlying all of these trends is a deeper structural shift: wealthy individuals and families are increasingly spreading their time and assets across multiple countries, and their property portfolios reflect this.

“We are seeing tax policies, such as the UK’s inheritance tax, playing a much larger role in influencing our clients’ lifestyle choices and property decisions compared to ten years ago,” says Eccles. “High-net-worth individuals and families are being even more strategic with their tax residencies and are increasingly spreading their time and wealth across different jurisdictions. Among our own clients in prime central London, approximately 70% own two or three properties around the world.”

Eccles reports that this mobility has created surging demand for professional property management. “The number of properties managed by our Home Management team has doubled in the past three years,” she notes, “as homeowners seek to ensure that their properties are secure and proactively maintained during periods of absence, and insurance obligations are met with regular inspections.”

Middleton Advisors sums up the broader picture: “What we are seeing more broadly is a willingness to adapt - whether that means retaining a London base while adding a country home, responding to changes in the buyer landscape or finding a more sustainable way to own an estate - rather than making decisions based on any single policy change in isolation.”

How Mishcon de Reya can help

Navigating the intersection of property, tax and cross-border planning requires specialist advice. Our Residential Property team advises UHNW and HNW clients on all aspects of buying, selling and owning prime residential property in the UK, while our Private Wealth team works with families, founders and family offices to structure property ownership, manage residency and domicile issues, and advise on the tax implications of acquiring, holding and disposing of residential property in the UK and internationally. Together, they provide a seamless, integrated service covering the full lifecycle of a property decision.

Whether you are considering a purchase, restructuring existing holdings or reviewing your position in light of recent policy changes, we can help you make informed decisions that align with your wider wealth strategy.

To discuss any of the issues raised in this article, please contact Dee Aylward in our Residential Property team at  or Charlie Sosna in our Private Wealth & Tax team.