One of the UK’s best-known property finding firms has claimed that increasing numbers of London’s wealthy are ‘fleeing the country’ and has blamed Labour’s recent decision to abolish the ‘non-dom’ tax regime.
Garrington, which has a network of property finders across the UK including London, says a large percentage of those deciding to leave the UK have been renting out their homes rather than selling them, in the hope that a future UK government is more welcoming to the world’s super rich.
The agency says those exiting are reluctant to sell their London ‘trophy homes’ says its asset management boss, Pippa Mitchell (main image)
She points to Land Registry figures which show that sale prices in the capital are flatlining amid a flood of supply.
Land Registry figures which show that sale prices in the capital are flatlining amid a flood of supply.”
Land Registry records show the average London home sold for 1.1% less in February than in January, with data from LonRes revealing that the number of homes priced at over £5 million coming onto the market during February was up 30% compared to the same month last year.
Also, the total number of £5 million+ properties up for sale rose by 21.1% over the year.
The ‘rewiring’ of London’s prime property market increased after Labour announced that from this April it would scrap the ‘non-dom’ tax regime, forcing wealthy UK residents with income from overseas to pay tax on their worldwide, rather than just UK, assets.
Jonathan Hopper, Group CEO of Garrington, adds: “Rising taxation and political uncertainty have led many wealthy UK residents to reassess their presence here, and a rapid recalibration of London’s prime property market is underway.
“Some of those leaving Britain have chosen to sell their London homes, but we’re starting to see a strategic shift as others retain their UK property assets and turn to the increasingly attractive lettings market instead.
In response to this shift, Garrington has announced a major expansion of Garrington Asset Management, its specialist property management arm.