Following the UK Labour government's implementation of tax increases and the elimination of tax benefits for the wealthy, a significant number of affluent business owners, heirs, and expatriates have begun departing the country. Last April, the government abolished a two-century-old tax advantage for non-UK residents and targeted the nation's wealthy elite through other measures, such as imposing taxes on private school fees. One of the most visible consequences has been a sharp decline in luxury car sales. While global luxury car sales are under pressure, the impact in Britain has been particularly pronounced, which Daniele Ministeri, a senior consultant at automotive research firm Jato Dynamics, suggests may be due to the so-called exodus of non-residents. According to Jato's data, Ferrari NV's registrations in the UK for the third quarter of 2025 plummeted 44% year-on-year to just 116 units, marking its worst quarterly performance in the country this century. Ferrari CEO Benedetto Vigna stated in an interview last October that the company had reduced car allocations to the UK, attributing the sales slump to people leaving Britain for tax avoidance reasons. Meanwhile, data from Jato indicates that Rolls-Royce's sales in the UK fell 26% year-on-year in the three months to September, with the British ultra-luxury brand recording its worst quarterly performance since early 2021. Concurrently, Aston Martin Lagonda reported that its UK sales over the same period also plunged by nearly one-third, the most significant drop among its key markets. Rolls-Royce CEO Chris Brownridge commented in an interview, "Our demand tends to shift with the location of our clients—we are observing many ultra-high-net-worth individuals relocating to different places. Therefore, based on these facts, the demand level in the UK does not surprise us." He also noted that the broader UK economic climate is affecting domestic demand. In this segment of the auto market, collectors trading rare Aston Martins and Ferraris priced in the six figures serve as a crucial barometer for the overall health of the UK luxury car industry. Historically, high resale values have also positioned these vehicles as assets and a means of wealth preservation. However, the used car market is currently facing pressure as well. A report from the Society of Motor Manufacturers and Traders (SMMT) showed that although overall used car sales achieved their best quarterly record since 2021, the segment including dealers trading rare used Porsches and Ferraris declined 8.6% year-on-year in the third quarter of 2025. Furthermore, the outflow of high-net-worth individuals has already impacted London's luxury property market, with significant price declines forecast for 2025. Research from property data firm LonRes indicates that over the past year, the value of properties priced at £5 million ($6.7 million) or more has fallen by approximately 15%.
Comments