Americans invariably want to get more bang for their buck. Currently, they can find a more significant bang in the upper reaches of the London property market than in other major global hubs such as Dubai, Geneva, or Singapore. This enables their buck to go much further.
Recent weakness in the London market combined with sustained appreciation of the US dollar against the British pound have further increased these price differentials.
This is also evident when comparing the preferred metric for property investors, cost per square foot. According to Knight Frank’s Wealth Report 2025, $1mn now buys 365 square feet in London, which contrasts with just 247 square feet in 2014 — a 43 per cent increase over the past decade. In simple terms, the continued strength of the US dollar makes UK property purchases more attractive for Americans.
Against this background, Home Office data confirms that more Americans are indeed looking to relocate: around 6,600 US citizens applied for UK citizenship in the year to March 2025, compared to just over 5,000 during the previous year. In Q1 2025 alone, there were 1,931 applications — the highest quarterly figure for 20 years.
It is therefore no surprise that affluent Americans have reportedly become the main non-British buyers of prime London real estate, according to Beauchamp Estates. Their principal focus is central London, notably Belgravia, Chelsea, Mayfair, and Marylebone. Outside London, demand in areas such as the Cotswolds is perennial.
What is driving the move?
Several factors lie behind this trend. Political disillusionment and lifestyle aspirations are certainly key, but there are practical considerations too: safer streets, cost of living, excellent private schools and free healthcare. A common language and cultural similarities also make adjusting to life in the UK relatively straightforward.
For those considering where they want to work, better quality of life is another pull factor, particularly the promise of a better work-life balance: shorter working hours, more generous annual leave, and up to nine months paid maternity leave, for example.
Beyond celebrity names making headline-grabbing moves to the UK, there are thousands of professionals who have quietly decided to relocate from the US: the collective effect is reshaping migration patterns between the two countries.
Lifestyle changes and a fundamental shift in working patterns have enabled Americans to choose a second home abroad from which they can continue to work, often remotely. Notwithstanding events of the past decade, London’s global appeal and the UK’s reputation as a safe haven for international investors remain undiminished.
Careful tax management needed
Tax is often a paramount consideration for Americans who are considering a move between continents. It is therefore prudent to engage US and UK tax-qualified legal advisers at the outset — ideally, before making any offer on a property. When doing so, it is critical to consider different potential ownership structures, and to understand all the relevant tax implications. Through careful management in advance of a property being purchased, complex issues such as inheritance tax can be successfully mitigated.
Another potential impact of the UK’s tax regime applies to second homeowners: stamp duty land tax (SDLT), which surcharges buyers of a second home, may well apply for non-UK residents. To help offset higher initial purchase costs, some buyers choose to focus on investing in areas of the UK that have strong growth potential.
Most properties for personal use are bought in personal names, or through trust arrangements, where appropriate. If the client chooses to purchase a property through a company, there are further SDLT — and annual tax on enveloped dwellings — considerations, unless the property is bought exclusively for investment purposes and the buyer does not intend to use it personally.
The rate of UK capital gains tax, which is payable on the gain made upon the eventual sale of the property, may surprise some Americans — but those who have moved their base to the UK may be able to claim exemption from UK CGT on their main residence.
If they do have to pay CGT in the UK, they should get relief against US tax under the tax treaty between the two jurisdictions so they should not suffer double taxation.
Another issue requiring careful consideration is potential IHT of 40 per cent on UK assets. Although this should be offset against payment of US taxes, the UK threshold for IHT is significantly lower than US estate duty. Notably, no inheritance tax applies on transfers between spouses or civil partners.
For American clients who are proceeding with a purchase, the advice is clear: to ensure a smooth purchase, please ensure that you have all the necessary documentation in good order well in advance. This might include proof and source of funds, a mortgage offer in principle (if financing is required) and sufficiently robust tax and financial planning to ensure that the purchase will be viable.
In formulating a strategy that achieves the best outcome, US and UK advisers may need to collaborate closely.
Various legal hurdles must be cleared before Americans can move to the UK — from getting a visa to finding a property. But London’s appeal to Americans in search of the attendant lifestyle, educational and investment benefits, is stronger than ever.
Analysis by MAK25 London Limited, an immigration law firm, shows that among the key drivers prompting Americans to relocate to London, perceived political instability in the US is a significant factor.
Of similar prominence is a safer educational environment — something which few Britons have to consider. No school shootings have occurred in the UK since 1996, while 39 shootings occurred in the US last year, and another 33 so far this year, according to CNN. This creates an obvious anxiety for many American parents.
Lower crime together with free maternity care and generous maternity leave add to the list of attributes that make the UK such an attractive destination for American families. According to MAK25, personal factors, such as family ties or job opportunities, also play a role, which further underpins the importance of obtaining bespoke visa advice.
As the US becomes increasingly polarised, both politically and socially, the UK offers much that continues to attract Americans, including cultural heritage, personal safety, and easy access to continental Europe. Whether they want a quiet life in the countryside or the dynamism of central London, the UK has much to offer those who simply want a fresh start.
Alexa Kordowicz and Leigh Sayliss are directors at Lawrence Stephens