There\u2019s been an influx of mortgages issued worth more than \u00a35 million, driven by non-doms departing from the UK.<\/p>\n
In 2024 there were \u00a33bn worth of mortgages at the \u00a35m+ mark, a 22% increase on the previous year, according to analysis from chartered accountancy firm Lubbock Fine<\/p>\n
Non-doms are being replaced by wealthy UK residents after the UK government announced that they would have to pay UK tax on overseas earnings from April 2025.<\/p>\n
As a result many non-doms are relocating to Dubai, Portugal, Italy and the US, where tax regimes are more favourable for wealthy foreign residents.<\/p>\n
Andrew Noton, partner at Lubbock Fine, said: \u201cWith more non-doms leaving the UK market a significant number of new prime properties have been added to the market.<\/p>\n
\u201cWealthy UK residents are now seizing the opportunity to snap up those properties and move up the property ladder.<\/p>\n
\u201cThese wealthy UK buyers are most often using mortgages \u2013 rather than cash \u2013 to fund purchases.<\/p>\n
\u201cThey either prefer to or need to borrow the sums required rather than sell their down some of their other investments or they have to fund the purchases from future income.<\/p>\n
\t <\/p>\n
\u201cNon-doms on the other hand more frequently paid in cash. Not all of the non-doms leaving the UK are selling their properties, many are keeping them and renting them.\u201d<\/p>\n
\u201cThe UK property market is seen as much more stable than many overseas residential property markets.\u201d<\/p>\n
The Foreign Income and Gains (FIG) regime came into effect on April 6 2025.<\/p>\n
Under the new regime, new UK tax residents won\u2019t pay tax on foreign income and gains for the first four years of their residency, regardless of whether the income is brought into the UK.<\/p>\n
Noton added: \u201cThe new FIG tax treatment is very attractive to overseas wealthy individuals.<\/p>\n
\u201cThese individuals have substantial buying power, but they are primarily opting to rent first \u2013 rather than committing to high value property purchases.\u201d<\/p>\n
The number of new sales instructions in the first six months of the year in prime central London (PCL) was 32% higher than the five-year average (excluding 2020), Knight Frank data shows.<\/p>\n","protected":false},"excerpt":{"rendered":"
There\u2019s been an influx of mortgages issued worth more than \u00a35 million, driven by non-doms departing from the UK. In 2024 there were \u00a33bn worth of mortgages at the \u00a35m+ mark, a 22% increase on the previous year, according to analysis from chartered accountancy firm Lubbock Fine Non-doms are being replaced by wealthy UK residents […]<\/p>\n","protected":false},"author":1,"featured_media":2992,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2],"tags":[],"class_list":["post-2991","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-second-home"],"yoast_head":"\n