Sellers in Prime Central London are being pressured to supply reductions to draw consumers after altering non dom guidelines dampened the market, in accordance with Knight Frank evaluation.
Common costs have declined by 2.2% in Prime Central London within the yr to Might, the steepest annual drop since August 2024.
In the meantime, the variety of gross sales in prime London property markets within the six months to Might fell by 7% towards the earlier yr.
Modifications to non dom guidelines are being blamed on the discount, as Tom Invoice, head of UK residential analysis at Knight Frank, explains.
He mentioned: “Beneath the previous guidelines, people may dwell within the UK with out paying tax on abroad revenue and features.
“The brand new rules restrict this to 4 years and imply their worldwide property are topic to UK inheritance tax.
“Because of this, nations like Italy, which operates an annual flat tax that ringfences abroad revenue, have turn into extra enticing.”
One other issue is the upper stamp obligation surcharge of 5%, which changed the three% surcharge in April.
Knight Frank has predicted property costs throughout Prime Central London staying flat in 2025.
In Prime Outer London, the place extra demand is pushed by needs-based and home consumers, common costs rose by 1.1% within the 12 months to Might.
