London’s luxury property market is being reshaped by stamp duty hikes and the abolition of non-dom status, forcing the super-rich into eye-watering rentals, some as high as £325,000 per month…
But while Mayfair townhouses are being rented instead of sold, Monaco is emerging as one of the chief beneficiaries of this shift, according to The Times.
For decades, the Principality has attracted international high-net-worth families seeking a stable, low-tax environment. Now, with Rachel Reeves’ reforms making London ownership financially unappealing, agents in Monaco report a fresh wave of interest from buyers who are no longer content with renting a base in the UK. Wealth managers say many of those abandoning London for temporary lets are simultaneously securing permanent residences in Monaco, viewing it as the ultimate safe harbour.
The contrast could not be sharper. In London, tenants are pouring millions each week into short-term deals: a Mayfair mansion recently let for £75,000 per week, while a St John’s Wood villa went for £27,500. Yet buyers are scarce, with transactions in the £15 million-plus bracket collapsing by more than 40 per cent year-on-year. By comparison, Monaco’s prime real estate market remains buoyant, fuelled by precisely the same non-dom “refugees” who are avoiding permanent status in Britain.
Property specialists say the symbolism matters. Renting in London provides flexibility and discretion, but purchasing in Monaco secures residency, stability, and crucially, tax certainty. While prices in central London have dipped by nearly 20 per cent since their Covid peak, values in Monaco’s famed Carré d’Or remain resilient, underpinned by limited supply and strong demand from global elites.
In effect, London has become a place to rent and Monaco, a place to put down roots.
