American buyers are leading the charge for luxury London property, with almost half of all homes sold for over £12 million last year going to US buyers, according to new research.

UK Sotheby’s International Realty revealed that a diverse group of American buyers, from tech millionaires to families, are behind the surge in interest. These buyers are particularly drawn to London’s historic neighbourhoods like Notting Hill, Holland Park, and Knightsbridge.

So, what’s driving this American dream of London living?

Safety, Sterling and Super Infrastructure

Experts say several factors are at play. Camilla Dell, boss of top buying agency Black Brick, explained: “For many of our US clients, London is a safe haven compared to the US, where gun crime is a major concern.”

And it’s not just about safety. London’s world-class infrastructure and cultural attractions are a major draw, particularly for families. Tom Kain, another expert at Black Brick, said: “I recently worked with an American family with three young children who are considering living in London for a year, just for the experience.”

The strong dollar also means American buyers are getting more bang for their buck. While the pound has strengthened recently, exchange rates still favour those paying in dollars.

London Property Market Gets a Post-Election Boost

The recent Labour election victory has also boosted the London property market, with Rightmove reporting a surge in interest from both buyers and sellers.

Even the luxury end of the market is feeling the love, with LonRes reporting a jump in transactions and offers being made on prime central London properties.

What’s Next for London House Prices?

While prices in prime central London are still down 5% compared to last year, experts are optimistic about the future. However, October’s Budget announcement has everyone on tenterhooks.

Prime Minister Keir Starmer has warned of potential tax hikes and spending cuts, which could impact the market. Foreign buyers, in particular, are waiting to see how changes to Capital Gains Tax, Stamp Duty, and Inheritance Tax might affect them.

Despite the uncertainties, one thing is clear: London remains a highly desirable destination for American buyers seeking a safe, vibrant, and potentially profitable place to invest.