Are the world's wealthiest still investing in the UK?

In recent years, the UK has experienced a small percentage of high-net-worth individuals leaving the country, due to factors such as economic uncertainty, political change and growing global competition, with wealth migration trends showing residents choosing more tax-friendly options.

However, despite this, wealthy individuals continue to select the UK as an investment. ‍

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Why are some high-net-worth individuals choosing to leave the UK?‍

Increasing taxes for high-net-worth individuals in the UK has been the primary reason for leaving the country, with data from Henley & Partners indicating that 16,500 millionaires have departed the country since the Brexit vote. This outgoing has also been accelerated by the government’s abolition of the “non-dom” tax status in April this year.

As a direct result, destinations like the UAE, Italy, and Switzerland have become favourable alternatives for high-net-worth individuals. ‍

‍What is a non-domiciled individual?‍

A non-domiciled individual, or “non-dom”, the term for a UK resident whose personal residence, home, or domicile is outside of the UK for tax purposes, was previously able to benefit from this status. As the London School of Economics explains, the system allowed these individuals to live in the UK but avoid paying tax on their foreign income because they claimed their permanent home was abroad. ‍

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What impact has this had on the UK’s investment appeal?‍

Although high-net-worth individuals are leaving the UK as residents, it has not affected the UK economy, as many are still choosing to invest in the country, with The Guardian reporting that the UK is now regarded as the second most attractive country to invest in.

Bloomberg also identified that wealthy families leaving the UK are choosing to keep their businesses registered in the country, even as they relocate their primary residence.

Other reasons the UK still attracts investment include:

- The UK continues to attract investment due to its strong financial and professional services industries, a transparent tax system, free-floating currency, and leading roles in high-growth sectors such as technology and life sciences.

- Highly-skilled workforce and a supportive regulatory framework. All these factors provide a sense of security and accessibility for international capital, even amidst global economic turbulence.

- Home to top schools, healthcare, and a rich cultural heritage. With great access to Europe and global connectivity, the UK remains an attractive location for investment. ‍

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The changing behaviour of the wealthy investor ‍

Recent years have also seen high-net-worth individuals adjusting asset allocations in light of inflation, longevity, and geopolitical risk. Julias Baer noted that portfolio rebalancing, risk management and preserving purchasing power have become common for the world's wealthiest.

There has been a shift in trophy assets, such as Mayfair townhouses, towards more income-producing, professionally managed investments, with strategies like purpose-built student accommodation offering high rental returns, proving to be popular. This is seen in Forbes, now noting that 82% of affluent investors now cite generating income as their primary objective.

There has been a growing interest in off-plan opportunities, serviced apartments, the private rented sector and build-to-rent. Mansion Global highlighted that of those with more than $5 million in investible assets, 36% have diversified into residential rental properties. Real estate remains a stable investment option for the ultra-wealthy.

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Manchester: The UK's No.1 Investment Location

‍With this change in focus, investors are now increasingly looking beyond London, recognising the compelling opportunities available in the UK's regional cities. Manchester stands out as the prime example of this shift.

The city has already attracted immense capital, with £10 billion actively deployed across major residential masterplans, commercial developments, and vital health, science, and transport infrastructure. Regeneration schemes are projected to add a further £10.2 billion of value to the property market.

This substantial investment has cemented Manchester’s position as the UK’s leading investment city, as Savills projects an impressive 31.2% capital growth in the region by 2029. A lively rental market underpins this confidence with healthy yields and an expected 4% annual growth over the next three years.‍

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Outlook for the remainder of 2025 and beyond‍

With the Bank of England signalling rate cuts are on the horizon, and confidence in the UK investment landscape continuing to grow, the 2025-2026 window is likely to bring strategic re-entry from wealthy investors seeking stability.

If you would like to learn more about investing in UK property, contact us today and one of our experienced Investment Advisors will be in contact to shortly to discuss available opportunities.