Key Insights
- Domestic Buyers Take the Lead: UK-based buyers now make up 61% of the luxury market, as non-dom tax changes reduce international competition and open doors to previously out-of-reach properties.
- Clear Market Divide by Price: Domestic buyers dominate below £4.2M, while international interest holds only in the £8.5M+ tier — highlighting distinct strategies and shifting market priorities.
- Luxury Prices Drop, Inventory Rises: A 33% jump in listings and falling demand have pushed median prices down from £1.5M to £1.2M, creating a rare buying window for locals.
Eric Finnas DahlstromCEO of JamesEditionWe’re seeing a rare window of opportunity open up in the UK property market, particularly for domestic high-net-worth buyers. With prices softening and more listings hitting the market, areas that were historically tightly held are now within reach. For international investors, the story is different: ultra-prime assets are still available, but selectivity is key. In today’s regulatory and tax landscape, you have to focus on properties with long-term value and resilience if you want to justify the investment.
As the UK’s 200-year-old non-domicile tax regime faces abolition, domestic buyers are reclaiming significant market share in the country’s luxury real estate sector, with their participation rising from 45% to a peak of 61% by mid-2025.
The transformation reflects a fundamental shift in the UK’s luxury property market dynamics.
According to JamesEdition data, domestic buyer inquiries have steadily increased since May 2023, when alternatives to the non-dom regime were first seriously considered by policymakers.
This trend accelerated following the Spring Budget 2024 announcement and continued through Labour’s electoral victory and subsequent policy confirmation.
The data reveals a market in transition, where reduced international competition has created new opportunities for UK-based high-net-worth individuals to acquire prime properties that were previously dominated by foreign capital.
According to The Times, 10,800 millionaires left the UK in 2024 — a 157% increase from the previous year — with many citing the non-dom overhaul as a primary factor.
Entry-Level Market Sees Strongest Domestic Interest
Domestic buyers demonstrate the strongest preference for the €500K-€1M segment (approximately £425K-£850K), where their share increased from 47.8% in 2024 to 80.8% in 2025. This shift represents the most significant change across all price tiers.
International buyers maintain their strongest presence in ultra-premium segments, holding 60.0% of the €10M+ market (£8.5M+) despite losing ground from their 65.6% share in 2024. International buyers increasingly concentrate UK investments in trophy properties that justify higher tax obligations.
This price-based segmentation reflects distinct buyer behaviors. Domestic buyers show increased activity in accessible luxury segments, while international purchasers concentrate on ultra-premium properties. The data suggests these preferences have solidified amid the non-dom policy changes.
Property Type Preferences Shift Toward Exclusive Categories
The traditional house remains the leading choice among luxury buyers—but its grip is weakening.
Instead, buyers are rethinking their priorities. Penthouses and country houses—once secondary picks—are gaining momentum. International buyers doubled their interest in penthouses and more than doubled searches for rural estates. Domestic demand, though smaller, is moving in the same direction.
Apartments remain a stable fallback, but the data points to a gradual shift. More buyers are exploring properties with distinctive features—whether that’s a penthouse in a prime city or a rural estate with long-term appeal. These choices suggest a growing focus on lifestyle, differentiation, and strategic fit.
Inventory Up, Prices Down: The Non-Dom Chain Reaction
JamesEdition data highlights a significant shift in the UK luxury property market, with inventory levels among the country’s top real estate agencies rising by 33% over the past 12 months.
The increased supply of luxury homes, combined with reduced demand from international buyers, has contributed to a notable price correction. Median listing prices on JamesEdition fell from £1.5 million in early 2023 to £1.2 million by May 2025.
As the FT mentioned in their recent article, “UK families ‘seize moment’ to buy exclusive London homes as non-doms retreat” and “are moving into prestigious postcodes that were once out of reach”.
The timing correlates directly with policy announcements affecting the non-dom regime. The Spring Budget 2024 declaration accelerated inventories and price adjustments across prime markets. Domestic purchasers now face both increased supply and more favorable pricing conditions as this traditionally dominant buyer segment retreats and lists their properties.
A New Era for UK Luxury Real Estate
Domestic buyers now account for 61% of luxury property activity in the UK—up 15 percentage points since before the non-dom policy shift. As international interest recedes, UK-based high-net-worth individuals are gaining access to prime properties once dominated by global capital. With inventory rising and median prices falling from £1.5 million to £1.2 million, conditions strongly favor domestic purchasers.
Ready to explore opportunities in the UK’s evolving luxury market? Discover prime properties now available to domestic buyers in our comprehensive UK real estate listings
Data methodology
This analysis is based on proprietary data from JamesEdition, covering buyer inquiry activity on UK luxury residential listings between May 2023 and May 2025. Buyer origin is determined using IP-based geolocation, user profile data, and inquiry metadata.
The term “domestic buyer” refers to users located in the United Kingdom at the time of inquiry. “Market share” figures reflect the proportion of total inquiries by buyer origin, segmented across four price bands: €500K–€1M, €1M–€2M, €2M–€5M, €5M–€10M and €10M+.
While this analysis reflects user activity on the JamesEdition platform, the directional trends are broadly consistent with external reporting from The Times, Financial Times, and others. However, figures may differ from nationwide transaction data or other luxury market benchmarks.
