The Pembroke, a new super-luxury private members’ club in London, opened recently with notable features including a butter sommelier and events hosted by model Claudia Schiffer, amid reports of a £100 million construction cost. Its debut would appear to signal a thriving scene for exclusive clubs in the capital. However, insiders and industry observers indicate that the market may be facing challenges, partly due to evolving residency and taxation rules affecting wealthy non-domiciled individuals.

While several high-end clubs have launched recently—such as Twenty Two and Maison Estelle in Mayfair in 2022, and the Roof Gardens in Kensington last year—there are concerns about oversaturation. Established venues like Annabel’s in Berkeley Square and 5 Hertford Street continue to compete with the newcomers. Philip Palumbo, managing director of the Walbrook club in the City, expressed skepticism about some recent openings, describing a "derivative" quality in offerings and cautioning that many promote similar themes of heritage and culture without differentiation. He also noted a significant loss of members, estimating that between 20 and 50 had relocated to cities such as Dubai and Milan, attributed largely to the impact of new residency regulations.

These changes in non-dom residency rules have reportedly made London less attractive to some members of the global elite. Although some individuals continue to spend time in the UK, concerns about tax implications appear to affect club memberships. Some patrons have reportedly relinquished memberships to avoid suggesting a stronger UK presence than they intend to declare to tax authorities, despite private wealth lawyers emphasizing that club membership alone is not a determinant of residency status. According to Christopher Groves, a private wealth lawyer at Withers, residency depends primarily on factors such as time spent in the country and the presence of permanent accommodation rather than affiliations such as club memberships.

Groves also highlighted a broader trend: while more individuals seem to be leaving London, fewer wealthy newcomers are arriving. His firm’s Milan office has experienced a substantial increase in business, reportedly doubling or tripling in recent years, reflecting a growing shift of international high-net-worth individuals to other financial hubs.

The departure of some affluent members has reportedly altered the character of London's private clubs. A London restaurateur commented that ongoing tax changes are fostering what he termed "taxation paranoia" among both UK residents and international clients, prompting some to relocate to countries like Cyprus or elsewhere. This, he stated, is contributing to a decline in demand for such exclusive clubs even as new establishments continue to open.

In summary, while London’s luxury members’ clubs are expanding and unveiling lavish new offerings, underlying shifts in residency rules, taxation policies, and international migration appear to be reshaping the composition and appeal of these institutions within the capital.