A growing number of wealthy US nationals are buying boltholes in London as they seek to escape Donald Trump’s America.
Americans accounted for 11.6pc of all overseas buyers in central London during the final three months of 2024, according to research from Knight Frank, as they surpassed their counterparts from China, who made up 8.1pc.
Those buyers included the likes of US fashion designer Tom Ford, who spent around £80m on a mansion in Chelsea in November last year.
The rise in wealthy US buyers comes as Americans applying for UK citizenship recently hit a record high, according to the Home Office, with Donald Trump’s return to the White House thought to be a major factor behind the influx.
More than 6,100 people applied last year, the data shows, with applications surging by 40pc year-on-year in the final three months of 2024 – the same period which saw Mr Trump re-elected to the White House.
Knight Frank said the strength of the US dollar may have also played a part, as buyers using the Greenback enjoyed a 38pc discount on properties in prime parts of London, compared with what they might have paid a decade ago.
It comes as average house prices in prime London neighbourhoods fell by 1.1pc in the year to February, with the number of deals dropping by 5pc.
Tom Bill, head of UK residential research at Knight Frank, said if Britain avoided getting caught in the crossfire of a trade war between the US and the EU, it could take advantage of the situation by positioning itself as a safe bet for overseas investment.
He said that the Chancellor’s upcoming Spring Statement presents an opportunity to soften the Government’s message towards international investors.
Mr Bill added: “It feels like unfortunate timing to be replacing the country’s non-dom tax regime with something less competitive.
“The Finance Bill is nearing the end of its journey through Parliament and the Government has shown no indication it sees merit in an Italian-style flat tax or that it will address investor concerns about subjecting overseas assets to UK inheritance tax.
“Demand for prime London property comes from a broader base of buyers than non-doms, but the UK is arguably sending the wrong message to the rest of the world at the wrong time.”
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