New data reveals ‘rapid recalibration’ of London’s Prime property market as millionaire exodus accelerates

London’s prime property market, which has seen prices stagnate amid a glut of luxury homes for sale, is being reset as wealthy owners fleeing the UK ahead of April’s abolition of the non-dom tax regime opted to rent out, rather than sell, their homes.

The rebalancing from sales to rentals at the top end of the capital’s property market is a result of HNW owners’ reluctance to part with unique, trophy assets and desire to focus on a “generational, rather than short-term, timeline”, according to Pippa Mitchell, Director of Garrington Asset Management.

Data from LonRes shows that the average rent agreed on flats in Prime Central London surged by 7.9% in the first three months of 2025 compared to Q4 2024. Average rental values of Prime Central London flats are now 11.3% higher than they were a year ago.

Meanwhile 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 January³, with data from LonRes revealing that the number of homes priced at over £5m coming onto the market in February was up 30% compared to the same month last year⁴. The total number of £5m+ properties up for sale rose by 21.1% over the year.

The rewiring of London’s prime property market accelerated after the Labour government 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 assets.

An estimated 10,800 millionaires left Britain for good in 2024, more than every other country bar China.

Jonathan Hopper, Group CEO of Garrington, said, “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.

“Prime rental values in London are now a third higher than their pre-pandemic average, and while our high and ultra-high net worth clients may have lost faith in the current government’s fiscal direction, their faith in prime UK property as a reliable, long-term asset remains as strong as ever.”

In response to this shift, Garrington has announced a major expansion of Garrington Asset Management, its specialist property management arm. First launched in 2013 and with offices in London and Cambridge, the company provides an exclusive lettings and property asset management service to HNW investors and family offices. Following a strategic acquisition, it is now led by two of London’s leading property management professionals, Pippa Mitchell and Benoit Gallaga.

Pippa Mitchell, Director of Garrington Asset Management added,“The dynamics driving London’s prime property market are being redrawn, but for those who understand them and think on a generational, rather than short–term, timeline, the capital remains one of the world’s most resilient and rewarding locations for property investment.

“That’s why many of the HNW owners navigating Britain’s shifting tax sands are increasingly opting to focus on lettings rather than sales. On an emotional level, this is about those who’ve acquired a rare, irreplaceable property in the capital keeping a home they love. And on a pragmatic level, a well-managed property asset will deliver consistent income year after year, yet can also be a home to live in whenever you wish.”