London's luxury property market is experiencing an unexpected surge in interest from wealthy New Yorkers contemplating relocation as the city prepares for a potential wealth tax under its newly elected socialist mayor.
The New York Exodus
Becky Fatemi, executive partner at Sotheby's International Realty in London, has reported a 28 per cent increase in enquiries for London properties over the past month. This surge coincides with growing poll leads for Zohran Mamdani, New York's self-described Democratic Socialist mayor-elect.
"We've had a significant number of New York brokers reaching out to find out what's available in London," Ms Fatemi told The Times. "The sentiment among many New York residents is clear that they're considering leaving the city and we're seeing strong interest both in rental options and in prime and super-prime purchases in London."
She added that American clients specifically prefer established London neighbourhoods, stating: "American clients don't want to live in the Middle East - they want to live in Notting Hill and South Kensington."
The Tax Tipping Point
The driving force behind this potential exodus appears to be Mr Mamdani's campaign pledge to introduce a two per cent wealth tax on incomes exceeding $1 million (£760,140). This measure, designed to ease living costs for ordinary New Yorkers, could affect approximately 34,000 high-earning households in the city.
Current tax disparities already make London more financially attractive for top earners. According to Daily Mail calculations, a salaried worker earning £1,000,000 would take home just £411,353 in New York compared to £541,786 in London, due to higher state and local taxes in the American city.
London's Own Tax Dilemma
However, wealthy New Yorkers considering relocation might find London's welcome mat being pulled away. Chancellor Rachel Reeves is preparing her own budget that could include tax increases targeting high earners and property owners.
Potential measures under consideration include a one per cent increase in income tax and a mansion tax that could levy one per cent on the value of any home valued over £2 million.
Joanna Cocking, head of private office at Hamptons, cautioned that such measures could deter American interest. "I imagine we might see an uptick in wealthy New Yorkers looking to relocate to London, but with the UK potentially poised to introduce its own wealth tax, anyone considering relocating will need to carefully consider the implications of the budget outcomes first," she advised.
The 'Donald Dash' Continues
If New Yorkers do flock to London following Mamdani's election, they would join an existing trend of liberal Americans leaving the US in response to Donald Trump's presidency - a phenomenon dubbed the 'Donald Dash'.
Recent high-profile arrivals include Star Wars creator George Lucas, who purchased a £40 million mansion in St John's Wood through an off-market transaction in September. The 81-year-old filmmaker, reportedly unhappy with Trump's leadership, is looking to spend more time in the UK.
Other notable Americans who have made the move include Ellen DeGeneres and her wife Portia de Rossi, who vowed never to return after Trump's election victory, along with Ryan Gosling, Eva Mendes, and America Ferrera seeking "the best opportunities" for her children in Britain.
Home Office figures substantiate this trend, revealing that applications for UK citizenship soared by 40 per cent year-on-year in the last quarter of 2024. More than 6,100 US citizens applied last year - the highest number since records began two decades ago and 26 per cent more than in 2023.
One Notting Hill estate agent confirmed that the number of wealthy American families moving to the area has "skyrocketed" since Trump's re-election, suggesting that political climate continues to influence relocation decisions among affluent Americans.
