The UK’s new tax and residency rules are reshaping the makeup of the country’s high-net-worth individuals, with many non-domiciled people opting to relocate abroad. At first glance, this might appear to be a direct threat to branded residences, a segment of the luxury property market that has grown rapidly in London over the past decade.
More regulation
Yet conversations with experts suggest the picture is more complex. At the heart of the current environment is regulatory complexity. For buyers and developers alike, branded residences sit at the intersection of residential and hospitality real estate, with additional layers of planning, ownership and service obligations.
“To be resident in the UK, you’re usually here more than 90 days a year,” notes Elaine Dobson, head of the residential property team at Taylor Wessing. “But planning permission says that if you rent your property out for more than 90 days, it falls into a different use class. Regulations touch on everything from how you use the property, to who owns it, to what the brand itself wants.”
If regulation is a friction point, taxation is a deterrent. “If you own a second home, or you’re an overseas owner, you’re being hit very hard by taxes,” stresses Chris Graham managing director of Graham Associates.
This is as the UK's Labour government moved ahead with non-dom tax reforms which took effect in April 2025, and include scrapping special non-dom tax perks and a shift to residence-based inheritance tax, so anyone resident for 10 of the past 20 years faces UK inheritance tax on global assets.
But while new rules and regulations are adding friction and leading to changes, Richard Bursby, head of the hotels & leisure group at Taylor Wessing frames it as an adjustment rather than a disruption. “There always seems to be more rules. But in terms of adverse impact on branded residences or luxury real estate generally? Not really. It just means more to check, more to think about, more to disclose.”
One area where this plays out is in rental pools. Branded residences with rental programmes, whether formally integrated with a hotel or loosely affiliated, trigger a cascade of additional considerations. Usage limits, tax classification and local planning obligations all shape how buyers can monetise their asset. However, this doesn’t seem to pose a huge problem for ultra-wealthy buyers who often prioritise privacy and tend to go for residences that don’t mandate a rental programme.
For this group, branded residences are increasingly attractive. They combine the privacy of a private home with the discretion and services of a luxury hotel, offering a ready-made solution for families who may only spend a few months a year in the UK.
Vanessa Grout, global head of residences for Aman says “Our buyers seek beauty, privacy and service at the very highest level. The value a highly personalised service, and security remains a primary driver.”
The buyer pool
Perhaps the biggest misconception is that outbound non-doms are selling up. They aren’t.
Graham notes that while many of the UK’s millionaires are leaving the country, reducing the domestic buyer pool for ultra-prime residences like Raffles at the OWO or the Peninsula, there’s an inflow of Americans and other international buyers.
Dobson adds that although many high-net-worth individuals are leaving, they are not disposing of their property. “They may be leaving the country, but they’re keeping their London homes.”
Rachel George, senior counsel in the private client group at Taylor Wessing echoes this: “They’re not cutting ties. They’re doubling down - buying somewhere where they can walk in without hassle rather than disposing and losing their foothold.”
The departure of non-doms also coincides with the arrival of new international buyers, Bursby adds, with Dobson noting the arrival of many Americans into the UK looking at residences in prime central London.”
She adds: “They want branded residences in areas like Mayfair, Belgravia, Kensington and Notting Hill. Some are leaving but others are coming in.”
Hurdles
It seems that demand for branded residences geared for wealthy individual isn’t the challenge but rather matching the right buyer to the right scheme.
If London remains the anchor, developers are increasingly considering opportunities beyond the capital. “Finding good development sites in central London is extremely difficult,” says Graham.
However branded country estates are seeing some attention, with projects like The Lakes by Yoo in the Cotswolds selling exceptionally well. Scotland – with its gold resorts - and Cornwall are also interesting, however, London continues to sit at the top of the hierarchy according to Dobson.
But even when demand is present, transactions can be slow. Branded residences are structurally more complex than conventional residential developments, with the variety of parties involved meaning more potential for delay.
The greatest friction is at the front end, with Bursby and Dobson noting that KYC (Know Your Customer) can be a challenge, especially for international buyers with complex structures. However, George notes that once the paperwork is done, transactions flow relatively smoothly.
“Bottlenecks tend to be in the buildup. Once the transaction gets up and running, things move fairly in the standard manner.”
The bigger picture
Despite uncertainty and challenges, branded residences remain resilient, partly because they solve practical problems for wealthy families: security, service, liquidity, and lifestyle assurance.
And branded residences sit within a larger structural trend: global capital chasing lifestyle real estate. Private equity, sovereign wealth funds, and institutional investors are increasingly active. Bursby points to Cain International’s recently announced venture with Mubadala, an Abu Dhabi sovereign wealth fund, to invest in global luxury property as one of many examples of the strong underlying demand for branded residences.
“Interest continues to expand as our clients look to build diversified portfolios of real estate that they can also enjoy personally,” Grout notes.
While tax burdens and compliance requirements will continue to weigh on both buyers and developers, the fundamentals, which include a wealthy global clientele seeking turnkey luxury living, remain intact. Some may be moving out, but they aren’t cashing out. And while one buyer pool shrinks, others are arriving. Branded residences in the UK, particularly in London, retain their appeal to the ultra-wealthy cohort, fuelled by new international demand and a growing recognition of the lifestyle and service benefits they deliver.