Americans Are Flooding London's Real Estate Market

Americans are snapping up London's luxury homes in record numbers, taking advantage of a slumping market. With new UK tax rules discouraging some foreign buyers, sales of high-end London properties have dropped sharply. US buyers appear to be stepping into what brokers say is an "extraordinary buyer's market," the Wall Street Journal reports. According to Beauchamp Estates, Americans are now the largest group of overseas buyers in the city, accounting for a quarter of prime property purchases in London last year, up from 18% in 2023.

Political tensions at home and the appeal of English-speaking, globally connected London are driving the surge. The exchange rate is also favorable by historical standards, though the dollar has dipped against the pound in recent months. According to real-estate consultancy Knight Frank, $1 million now buys 365 square feet in London, up from 247 square feet a decade ago. The Journal reports that Americans are "largely undeterred" by the UK tax changes, under which UK residents whose permanent home is outside the UK for tax purposes will have to pay British taxes on money they make overseas.

"Americans are taking advantage of the markets being relatively flat," says real-estate consultant Ugo Arinzeh, who's helped clients land homes in exclusive neighborhoods like Knightsbridge and Bloomsbury. Analysts say the American buyers are especially interested in historic buildings. Property agents say there has been a lot of demand from Americans who want to get away from the Trump administration—and from young buyers who made their money in crypto, the Journal reports. The Telegraph reported earlier this year that the number of Americans seeking British citizenship has hit a record high. Applications rose to more than 6,100 in 2024, with a 40% year-on-year surge in the last few months of the year.