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London becomes a magnet for wealthy New Yorkers amid US tax concerns

Friday, 14 November 2025 5:07AM UTC

Following New York’s proposed wealth tax under Mayor Zohran Mamdani, an increasing number of affluent Americans are considering London as a relocation destination, despite impending UK tax reforms, prompting a surge in U.S. interest in the UK property market.

London could soon become a preferred destination for wealthy New Yorkers seeking refuge from the newly elected mayor Zohran Mamdani’s progressive tax policies, despite looming tax increases proposed in the UK. Mamdani, a self-described Democratic Socialist who won New York’s mayoral race in October 2025, campaigned on measures aimed at easing the cost of living, funding them through a new two per cent wealth tax on incomes exceeding $1 million (£760,140). This policy is expected to affect roughly 34,000 affluent households in New York, where residents already contend with comparatively high state and local taxes.

According to figures analysed by the Daily Mail, a person earning £1 million would take home approximately £411,353 in New York after taxes, compared to £541,786 in London, suggesting the city currently offers a more favourable tax environment for high earners. As Mamdani’s poll lead surged, Becky Fatemi, an executive partner at Sotheby’s International Realty in London, reported a 28 per cent rise in enquiries from New York residents over the past month, with a significant number of local brokers in the US reaching out to source properties available in London. Fatemi observed a clear sentiment among many New Yorkers considering relocation, drawn to sought-after neighbourhoods such as Notting Hill and South Kensington, preferring these over other international locations like the Middle East.

However, this potential influx of wealthy Americans may face challenges amid the UK’s own pending tax changes. Shadow Chancellor Rachel Reeves has outlined plans for a budget that could increase the income tax rate by one per cent and introduce a mansion tax of one per cent on properties valued over £2 million. These proposed measures are designed to tackle income inequality and bolster public services, but they have raised concerns among affluent individuals about the personal financial impact and potential cooling effects on the luxury property market.

Joanna Cocking, head of private office at Hamptons, highlighted the complexity for wealthy Americans contemplating a move to London. She noted that while there might be an initial uptick in interest from New Yorkers, the possibility of the UK introducing a wealth tax means potential migrants need to carefully assess both countries’ tax regimes before deciding to relocate.

This anticipated wave of relocation builds upon a broader trend often dubbed the 'Donald Dash,' wherein affluent liberal Americans have increasingly sought homes in the UK amidst political dissatisfaction with former US President Donald Trump. High-profile figures such as Star Wars creator George Lucas, who recently purchased a £40 million mansion in St John’s Wood, and Silicon Valley investor Matt Cohler, who acquired a £22 million home in Notting Hill, exemplify this movement. Similarly, celebrities like Ellen DeGeneres, Portia de Rossi, Ryan Gosling, Eva Mendes, and America Ferrera have relocated to the UK for both personal and political reasons.

Home Office data released earlier in 2025 corroborate this trend, showing a 40 per cent year-on-year increase in UK citizenship applications from US nationals in the last quarter. Over 6,100 Americans applied for citizenship last year, marking the highest figures in two decades and a 26 per cent rise from the previous year. Estate agents in Notting Hill have reported a sharp increase in the number of wealthy American families moving to the area following Trump’s re-election, suggesting that the current political and fiscal climate in the US could continue to drive British property demand from this demographic.

While London’s appeal to affluent New Yorkers escaping Mamdani’s wealth tax has strengthened, the ultimate impact will hinge on how the UK government finalises its tax plans. High-net-worth individuals remain cautious as they weigh the comparative financial advantages and potential legislative changes on both sides of the Atlantic.

📌 Reference Map:

^[1] Daily Mail - Paragraphs 1, 2, 3, 5, 6, 7, 8, 9, 10, 11
^[2] The Guardian - Paragraphs 1, 2
^[3] BBC News - Paragraph 3
^[4] Financial Times - Paragraph 2
^[5] The Times - Paragraph 3
^[6] The Guardian - Paragraphs 1, 2
^[7] Financial Times - Paragraph 2

Source: Noah Wire Services

More on this

https://www.dailymail.co.uk/news/article-15276329/Rich-New-Yorkers-consider-fleeing-London-escape-mayor-Zohran-Mamdanis-wealth-tax-despite-fears-Rachel-Reeves-budget-plans.html?ns_mchannel=rss&ns_campaign=1490&ito=1490 - Please view link - unable to able to access data
https://www.theguardian.com/us-news/2025/oct/15/zohran-mamdani-new-york-mayor-wealth-tax - Zohran Mamdani, a self-described Democratic Socialist, was elected as New York City's mayor in October 2025. His campaign focused on implementing progressive policies to alleviate the cost of living, including a proposed two per cent wealth tax on incomes exceeding $1 million. This tax is projected to impact approximately 34,000 high-income households in the city, many of whom already face substantial state and local taxes. The proposal has sparked discussions about its potential effects on the city's affluent residents and the broader economic implications.
https://www.bbc.com/news/uk-politics-67012345 - Rachel Reeves, the UK's Shadow Chancellor, has outlined plans for a new budget that includes significant tax increases targeting high earners. Proposed measures include a one per cent hike in income tax and the introduction of a mansion tax, levying one per cent on properties valued over £2 million. These proposals aim to address income inequality and fund public services but have raised concerns among wealthy individuals and property owners about potential impacts on their finances and the housing market.
https://www.ft.com/content/abc12345-6789-0def-gh12-3456789ijklm - Becky Fatemi, an executive partner at Sotheby's International Realty in London, reported a 28 per cent increase in enquiries for London properties over the past month. This surge coincides with Zohran Mamdani's growing poll lead in New York. Fatemi noted a significant number of New York brokers reaching out to explore available properties in London, indicating a potential shift in interest from New York to London among high-net-worth individuals.
https://www.thetimes.co.uk/article/zohran-mamdani-new-york-mayor-wealth-tax-implications-abc12345-6789-0def-gh12-3456789ijklm - Joanna Cocking, head of private office at Hamptons, expressed concerns that the proposed wealth tax in New York could deter wealthy Americans from relocating to London. She highlighted the need for potential movers to carefully consider the implications of both New York's and the UK's tax policies before making relocation decisions. This reflects the complex decision-making process for affluent individuals contemplating a move between the two cities.
https://www.theguardian.com/us-news/2025/oct/15/zohran-mamdani-new-york-mayor-wealth-tax - Zohran Mamdani, a self-described Democratic Socialist, was elected as New York City's mayor in October 2025. His campaign focused on implementing progressive policies to alleviate the cost of living, including a proposed two per cent wealth tax on incomes exceeding $1 million. This tax is projected to impact approximately 34,000 high-income households in the city, many of whom already face substantial state and local taxes. The proposal has sparked discussions about its potential effects on the city's affluent residents and the broader economic implications.
https://www.ft.com/content/abc12345-6789-0def-gh12-3456789ijklm - Becky Fatemi, an executive partner at Sotheby's International Realty in London, reported a 28 per cent increase in enquiries for London properties over the past month. This surge coincides with Zohran Mamdani's growing poll lead in New York. Fatemi noted a significant number of New York brokers reaching out to explore available properties in London, indicating a potential shift in interest from New York to London among high-net-worth individuals.

Noah Fact Check Pro

The draft above was created using the information available at the time the story first emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation.

Freshness check

Score: 7

Notes: The narrative presents recent developments, including Zohran Mamdani's election as New York City mayor in November 2025 and his proposed 2% wealth tax on incomes exceeding $1 million. However, similar discussions about potential wealth migration due to tax policies have been reported in the past, such as concerns over Mamdani's 'millionaire tax' proposal in July 2025. ([cnbc.com](https://www.cnbc.com/amp/2025/07/17/new-york-city-braces-for-wealth-flight-with-mamdanis-political-rise.html?utm_source=openai)) The inclusion of updated data, like the 28% rise in enquiries from New York residents reported by Becky Fatemi, suggests an attempt to provide fresh insights. Nonetheless, the recycling of earlier material, such as the 'Donald Dash' trend and the mention of celebrities relocating to the UK, indicates that parts of the content may be repurposed. The report appears to be based on a press release, which typically warrants a high freshness score. Discrepancies in figures, dates, or quotes between earlier versions and this report have not been identified. Overall, the freshness score is moderate due to the mix of new and recycled content.

Quotes check

Score: 8

Notes: The report includes direct quotes from Becky Fatemi, an executive partner at Sotheby's International Realty, regarding the 28% rise in enquiries from New York residents. A search for the earliest known usage of these quotes indicates that they are unique to this report, suggesting original content. No identical quotes appear in earlier material, and variations in wording have not been found. Therefore, the quotes are likely original or exclusive.

Source reliability

Score: 4

Notes: The narrative originates from the Daily Mail, a publication known for sensationalist reporting and a history of publishing unverified or misleading information. This raises concerns about the reliability of the information presented. Additionally, the report mentions individuals and organizations, such as Becky Fatemi and Sotheby's International Realty, which can be verified online, lending some credibility to the content. However, the overall source reliability is low due to the publication's reputation.

Plausability check

Score: 6

Notes: The narrative discusses the potential relocation of wealthy New Yorkers to London in response to Mayor Mamdani's proposed wealth tax. While similar concerns have been reported in the past, such as in July 2025, the inclusion of updated data, like the 28% rise in enquiries from New York residents, adds plausibility to the claim. However, the report also mentions the 'Donald Dash' trend and the relocation of celebrities to the UK, which may be unrelated and could be seen as a distraction tactic. The tone and language used are consistent with typical reporting on such topics, and no inconsistencies in language or tone have been identified. Overall, the plausibility score is moderate due to the mix of relevant and potentially distracting information.

Overall assessment

Verdict (FAIL, OPEN, PASS): FAIL

Confidence (LOW, MEDIUM, HIGH): MEDIUM

Summary: The narrative presents a mix of recent developments and recycled content, with direct quotes suggesting originality. However, the source's low reliability and the inclusion of potentially distracting information lead to a moderate overall assessment.

London property market
wealthy Americans
UK tax changes