Knightsbridge in Crisis: Luxury Exodus Amid Tax Fears and Brazen Crime Wave
One of London's most prestigious and exclusive neighbourhoods is witnessing a dramatic exodus of billionaire residents and a severe downturn in property transactions. Knightsbridge, renowned globally for its opulent stores like Harrods and its concentration of multi-million pound residences, is experiencing a profound market correction with homes now priced at their most affordable levels in fifteen years.
A Perfect Storm of Policy and Lawlessness
Industry sources point to a dual-pronged assault on the area's affluent character. Firstly, Chancellor Rachel Reeves's proposed 'mansion tax'—a surcharge on properties valued over £2 million set to commence in 2028—is actively deterring super-rich buyers. Secondly, persistently high crime rates, driven by organised gangs operating on mopeds and e-bikes, are creating an atmosphere of insecurity that is repelling both residents and international investors.
The brazen nature of criminal activity was starkly illustrated this week. In a terrifying three-minute daylight raid shortly before 11am on Tuesday, machete-wielding robbers wearing helmets stormed a Rolex boutique. They smashed display cabinets, looted high-value items, and escaped on mopeds parked outside. The targeted store sits on the ground floor of the ultra-luxurious One Hyde Park development, a building constructed in 2009 by billionaire Reform UK treasurer Nick Candy, who reportedly still owns a penthouse there.
A Pattern of Brazen Criminality
This incident is not isolated. Just weeks prior, the nearby luxury Italian fashion brand Loro Piana was similarly looted after a car rammed into its storefront in the early hours of December 16th. Clothing and handbags were stolen, with suspects fleeing before police arrival. These audacious attacks underscore a growing trend.
A local security guard, who resides in Knightsbridge but wished to remain anonymous, described a disturbing territorial dynamic among criminal groups. 'They divide it up, some on foot, many on mopeds. I see a lot around here and, honestly, tourists would be far safer going to some of the roughest areas of the East End than they would spending time in Knightsbridge,' he revealed, adding that the area's wealth inherently attracts criminal elements.
Official Metropolitan Police figures from November show 295 offences recorded in Knightsbridge and Belgravia, with almost a third occurring near Harrods. While the Met notes a recent increase in neighbourhood policing and a shift in criminal tactics from mopeds to e-bikes, the perception of danger persists. A local resident remarked of the Rolex heist, 'Honestly, that's pretty normal around here.' Many luxury stores have now implemented queuing systems ostensibly for crowd control, but also to monitor patrons closely.
Violence and Political Grievance
The crime issue extends beyond theft to violent tragedy. In July last year, 24-year-old Blue Stevens was stabbed to death near the five-star Park Tower Knightsbridge hotel, mere steps from the recently robbed Rolex store. His killer remains at large. His mother, Charlie Sheridan, has publicly accused London Mayor Sadiq Khan of 'celebrating' falling homicide rates while her 'beautiful boy lies in his grave'. She expressed outrage at City Hall's messaging, stating, 'One murder is too many. How f***ing dare they?'
Property Market in Freefall
The impact on Knightsbridge's luxury property market is severe and quantifiable. Last year, average property prices in the area fell by 27% compared to the previous year and are down 37% from their 2016 peak of nearly £4 million. The current average home now costs approximately £2.49 million.
High-end estate agent Savills reported this week that transactions for homes worth £5 million or more fell by 11% across 2025, with only 412 such properties sold. Sales in the £10-15 million bracket plummeted by almost a third (31%). Total spending by wealthy buyers on these premium homes dropped by 18%, or nearly £900 million, year-on-year.
Trevor Abrahamson of Glentree Estates attributes much of the capital flight to Labour's inheritance tax reforms, which will subject non-doms' global assets to a 40% levy after ten years in the UK. 'The stupidity of this is beyond comprehension,' he argues, noting that clients like steel magnate Lakshmi Mittal and shipping tycoon John Fredriksen have already relocated to Dubai. 'They're wealth creators. Which idiotic country would create an environment so they leave?'
A Global Wealth Drain
This sentiment is reflected in broader data. A recent Henley & Partners report on global wealth revealed that in 2024, the UK lost more millionaire residents than any city worldwide except Moscow, with 9,500 high-net-worth individuals departing within twelve months.
While some, like 56-year-old renter Amy Smith, welcome lower prices as a potential buying opportunity, the prevailing mood is one of decline. Italian resident Monica Orion, 35, who has lived in Knightsbridge for twelve years, finds official crime reduction statistics hard to believe. 'At least once per week I'm seeing things stolen around here from shops, they are so brazen,' she said. 'It feels to me like crime rates are going up around here, not going down.'
The confluence of aggressive fiscal policy, rampant street crime, and high-profile violence has created a crisis of confidence in one of London's most iconic districts, triggering an unprecedented flight of capital and residents from its golden streets.
