London might be bracing for Rachel Reeves‘ latest tax-hiking budget – but could it be about to welcome a wave of rich New Yorkers fleeing its socialist mayor Zohran Mamdani?
That’s the verdict of one executive at a high-end London estate agency, which has already fielded a ‘significant number’ of enquiries from residents of the Big Apple.
Mr Mamdani, a self-described Democratic Socialist, based his mayoral campaign on a raft of measures to ease the cost of living, which he pledged to fund with a new two per cent wealth tax on incomes over $1million (£760,140).
This could hit around 34,000 households in the city, where high earners already face higher tax deductions from their pay slip than their counterparts in London due to costly state and local taxes.
In fact, a salaried worker paid £1,000,000 would take home just £411,353 of their salary in New York compared to £541,786 in London, according to calculations by the Daily Mail.
Becky Fatemi, an executive partner at Sotheby’s International Realty in London, said she had seen enquiries for London properties rise by 28 per cent over the past month as Mamdani’s poll lead grew.
‘We’ve had a significant number of New York brokers reaching out to find out what’s available in London,’ she told The Times.
‘The sentiment among many New York residents is clear that they’re considering leaving the city [and] we’re seeing strong interest both in rental options and in prime and super-prime purchases in London.
‘American clients don’t want to live in the Middle East – they want to live in Notting Hill and South Kensington.’
Yet with Ms Reeves planning to clobber the rich in her upcoming budget, wealthy New Yorkers shouldn’t count on a big welcome.
Potential tax hikes include a one per cent hike in income tax and a mansion tax that could levy one per cent on the value of any home over £2million.
Joanna Cocking, head of private office at Hamptons, said such measures could put off rich Americans.
‘I imagine we might see an uptick in wealthy New Yorkers looking to relocate to London, but with the UK [potentially] poised to introduce its own wealth tax, anyone considering relocating will need to carefully consider the implications of the budget outcomes first and how it might affect them personally,’ she said.
If London sees an influx of New Yorkers following Mamdani’s election, it would build on an existing ‘Donald Dash’ of liberal Americans fleeing the US in disgust at President Trump.
One recent arrival was Star Wars creator George Lucas, who has bought a huge £40million mansion in St John’s Wood.
The house, which was previously owned by a city lawyer, was purchased off market in September, Bloomberg reported.
Lucas, 81, is reportedly unhappy with Donald Trump’s decisions in the US and is looking to spend more time in the UK.
New York’s mayor-elect is a self-described Democratic Socialist
Last year, the filmmaker hosted an A-list party for Joe Biden and fellow Democratic supporters ahead of the election.
The sale of the home comes after Silicon Valley investor Matt Cohler recently bought a £22million house in Notting Hill.
It is the largest purchase since fashion designer Tom Ford bought an £80million mansion in Chelsea last year.
While Lucas has never publicly criticised the President, he has joined a growing list of liberal A-listers deciding to make the move to the UK.
Ellen DeGeneres and her wife Portia de Rossi made a quick exit after Trump’s election victory and vowed to never return.
Ryan Gosling and his wife Eva Mendes also made the move alongside America Ferrera, who fled the US in search of the ‘best opportunities’ for her children in the UK.
The so-called ‘Donald Dash’ has been backed up by Home Office figures earlier this month which revealed that applications for UK citizenship soared in the last quarter of 2024, rising 40 per cent year on year.
In fact more than 6,100 US citizens applied last year, the most since records began two decades ago and 26 per cent more than in 2023.
One Notting Hill estate agent, who revealed the amount of wealthy American families they are moving in has ‘skyrocketed’ since Trump was re-elected.
