By Shravan Gupta.
The luxury housing market in the United Kingdom saw a minor disruption at the start of 2025, but it is now experiencing a remarkable revival driven by increasing demand for upscale real estate. Major changes in tax laws have created new opportunities, with international buyers pulling back and affluent local buyers stepping in, showing fresh interest in prime London locations and countryside estates. Prices have dropped enough to present a unique market opportunity, paving the way for a new wave of luxury. The rising demand for luxury homes is fuelled by evolving consumer behaviour, lifestyle changes, and economic fluctuations. Shravan Gupta, MGF Group, says it is indeed the right time to invest in UK real estate. Hence, more people are preferring to buy a home there and live the life of their dreams.
REASONS THAT MAKE IT A BUYER’S MARKET:
The Tax Tipping Point:
It started with a major policy shift: the UK scrapped its 200-year-old non-domicile tax regime in April 2025. This decision prompted the exit of many foreign investors, especially those who had long held a dominant presence in the prime London market. With fewer international buyers in the mix, domestic buyers finally had room to breathe—and negotiate. It is drawing buyers from around the world, making it a growing segment. The UK real estate market is offering lucrative opportunities and attracting new buyers.
The revival of middle market sales:
The middle market sales are on the rise in the UK market. It is influencing and transforming the dynamics of the middle market. The middle-class consumer is willing to invest in luxury homes and achieve the dream of living a luxurious life. Today middle-market homeowners sell at higher valuations—especially in northern regions where prices rose faster than in the south—they’re unlocking equity that enables them to upgrade to luxury properties.
Shravan Gupta, MGF Group, The luxury housing segment has proven to be a significant advantage for the UK market, making this an opportune time to consider investing in luxury properties. This sector holds the potential to drive UK real estate growth in the coming months. Furthermore, it appeals to high-net-worth individuals (HNWIs) worldwide, solidifying the UK’s status as a secure and attractive investment hub.