The run-up to the general election had less of an impact on the housing market than expected, with the exception of demand for prime properties, according to Winkworth.

“A combination of the Conservative Party’s removal of non-domiciled status, the Labour Party’s stated intention of adding VAT to private school fees, and the higher cost of finance have weighed on this sector,” the franchise estate agency said.

HMRC has published its latest figures on non-domiciled tax payers, covering 2023.

The data shows:

+ 12,900 non-domiciled taxpayers arrived in the UK in the 2023 tax year, up 18% on the previous year

+ HMRC believes there are now 74,000 non-domiciled taxpayers in the UK, up 7% year-on-year

+ Revenue from non-domiciled taxpayers came in at £8.9bn, some 6% higher year-on-year and the highest level since 2017

+ That includes an estimated £6.2bn of income tax, £384m of Capital Gains Tax and £2.3bn of National Insurance contributions

Nicholas Hyett, investment manager at Wealth Club commented: “Non-dom’s will soon be extinct in the UK, with the new government looking to abolish the tax status that many wealthy individuals use to shelter their international earnings from UK tax. These numbers are therefore a glimpse into the past, soon to be part of the fossil record.

“However, the Labour manifesto promised a process of evolution with “a modern scheme for people genuinely in the country for a short period”. These numbers show how important it is to get that new regime right. £8.9 billion of tax revenue is not to be sniffed at, and while taxing the rich might raise more revenue it also runs the risk that the global elite decide to move their taxable wealth somewhere with a lighter touch tax regime.

“The government’s task is to deliver an economic climate that’s more welcoming and ideally a good deal more reliable than the British summer has proven this year. If it can achieve that it has the potential to achieve the best of all worlds – a tax regime where the wealthy contribute more, but don’t feel the need to flee abroad to sunnier climes.”