London’s prime property market may be going through something of a rough patch, but it certainly can count on its friends to help it out.
Recent sales data shows the UK capital’s Special Relationship with American luxury property buyers is as strong as ever, and the cohort in fact, is currently spending more on prime real estate in the city than any other.
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According to data, American property buyers accounted for 25% of all prime property purchases in 2024, and this is a trend that is continuing to hold strong through the midway point of 2025.
That makes them the largest group of overseas buyers in the capital, a title once held by Middle Eastern royals and Hong Kong billionaires.
“This is an extraordinary buyer’s market,” says Camilla Dell, founder of buying agency Black Brick, who have helped U.S. clients secure several high-profile property deals in London, in the first half of 2025. “We haven’t been paying asking price.”
There’s little mystery why: London’s prime housing market is weathering a mix of higher economic challenges, including higher stamp duty taxes and the overhauls on the tax status of its non-dom citizens.
As a result, there’s been an opening for cash-rich dollar buyers and the cousins from over the pond are taking full advantage of this.
A strong dollar capitalises on a weak pound
With the pound still relatively weak compared to historical norms, Americans are getting more bricks for their buck. Ten years ago, $1 million would have bought just 247 sq ft of prime London real estate, but today, try 365 sq ft, according to UK real estate consultancy, Knight Frank.
That extra space is translating to serious buying power in neighborhoods like Notting Hill, Kensington, and Chelsea.
Jo Eccles, managing director of Eccord, recently closed a $40 million deal for an American client in Notting Hill and is actively scouting for another in the same price range. She says Americans used to rent for years before committing to a purchase. Now? “They’re buying after 12 months.”
Inquiries from American clients are at an all-time high, fueled by political unease back home, interest in European access, and a general sentiment that now is the moment to pounce.
Favourable landscape for American buyers
Wealthy foreigners are currently grappling with the UK’s government’s decision to dismantle the ‘non-dom’ tax regime, which once allowed them to shield offshore income from taxation.
Combine this with higher stamp duty charges and sluggish transaction volumes, and the top end of London real estate has softened considerably.
Sales of homes priced above $10 million fell 37% year-over-year in Q1, while properties over £5 million have seen a 45% increase in price reductions, according to LonRes.
“They’re used to high property taxes and global income reporting,” says Ugo Arinzeh, a U.S.-born property consultant based in London. “The recent UK changes don’t scare them.”
Even better? Prime product is lingering on the market longer, creating leverage. Gary Hersham of Beauchamp Estates recently had a U.S. buyer baulk when the pound strengthened, pushing the price of a $21 million home up to $23.5 million in dollar terms. “They want a million-dollar discount,” he says. “There’s a real perception that bargains are everywhere.”
A new kind of Transatlantic buyer
While traditional buyers are scooping up pieds-à-terre and relocating families, a new breed of U.S. entrepreneur is also entering the scene.
Young tech and crypto millionaires – flush with liquidity and driven by lifestyle – are now competing for trophy homes and branded residences.
At the redeveloped OWO building (formerly Britain’s War Office), Americans are now the top buying demographic. Apartments there can top $26 million, with buyers drawn by a mix of historic prestige and five-star hotel amenities. Similar surges are being reported at Shard Place and The Whiteley.
Demand is particularly hot for heritage-rich homes with modern refurbishments. Think: Grade II-listed grandeur with underfloor heating and integrated smart systems.
This heritage appeal is just one of several factors helping U.S. buyers navigate the volatility in currency and tax legislation. It’s also making one thing clear: American interest in London is not a trend; it’s a shift.
“These clients aren’t asking if they’ll buy in London,” Eccles says. “They’re asking when.”
