Prime London Prices Fall as 16,500 Millionaires Leave UK

Prime Central London (PCL) is facing its most anxious market in over ten years. As wealthy residents leave the UK following tax changes, top‑end property prices are falling and transactions have slowed sharply.

According to new figures and analysis, this exodus of high‑net‑worth individuals is reshaping demand and creating a challenging environment for buyers and sellers alike. Yet despite growing caution, some investors are stepping back in, drawn by falling prices and competitive rental yields.

London property broker Black Brick describes today’s Prime Central London market as the most anxious it has been in more than a decade. The main trigger: the end of the non‑dom tax regime in April, which has prompted a wave of departures among wealthy elites.

Fresh data from the Henley Private Wealth Migration Report 2025 shows the UK is expected to lose around 16,500 millionaires this year — the largest net outflow of high‑net‑worth individuals since records began. At the same time, Knight Frank has cut its price growth forecast for PCL from 2% to 0%, noting a £401 million Stamp Duty shortfall driven by a 14% fall in £5m+ transactions.

“Buyers know it’s a buyer’s market, but many fear catching a falling knife,” said Camilla Dell, Managing Partner at Black Brick. “The departure of wealthy residents is making everyone nervous about how far prices could still fall.”

Transaction levels in PCL have dropped sharply — now standing 36% below May 2024 levels. Many potential buyers who could afford to purchase are choosing instead to rent, waiting for signs the market has stabilised before committing.

Yet some investors see opportunity in the downturn. According to Black Brick, select properties are now delivering gross rental yields of around 5%, higher than typical savings bonds and with scope for capital growth if the market recovers. Tom Kain, Partner at Black Brick, notes that falling prices are attracting long‑term investors prepared to ride out short‑term volatility.

Interestingly, a few PCL neighbourhoods are already bucking the trend. Postcode‑level data from Lon‑Res shows areas like South Kensington and parts of the West End (Fitzrovia, Bloomsbury and Soho) have seen prices edge upward over the past year — suggesting some localised resilience even in an anxious wider market.

At Mortgage-tek, we understand that even in uncertain markets, there can be opportunities for the right buyers and investors. Our experts help you navigate price movements, tax changes and evolving lender criteria — so you can make informed property decisions with confidence.