A new report from Barclays Wealth has highlighted how one in 79 Britons over the age of 21 are now a millionaire.
The new millionaires have the rising property prices to thank for their new found status. According to Barclay’s Wealth & Investments annual UK prosperity map, published today, this is the highest on record. Having increased by 44,000 people over the last 12 months, 625,000 millionaires now live in Britain, meaning that the term ‘millionaire’ isn’t just reserved for those with extreme wealth anymore. Being a millionaire is now more attainable than ever.
Nearly half of the UK’s millionaires are located in London and the South East, where typically, property prices are higher. London alone is home to 26.4% of the UK’s total millionaire population, where average property prices are £482,000. However, this figure shows slower growth than other parts of the UK, such as the East Midlands, where the growth of millionaires has dramatically increased. The slow down in property growth rates in London will have had a direct impact on the wealth of residents here. This dramatic drop in property growth is expected to continue for the next couple of years – prices will remain flat this year before rising by 2.5% next year and 4% in 2019.
Chief executive of Barclays Wealth & Investments, Dena Brumpton, stated: ‘It’s interesting to note that the regions that have seen the greatest advance in millionaire numbers, namely the East Midlands and the South West, have both seen healthy upticks in property prices. The regions that have seen lower growth in millionaire numbers – for example, London – have typically experienced slower house price growth over the same period.’
Despite London seeing a slight decline in prosperity, and a slowdown in property prices compared to other regions, London still remains the driver for economic growth. Property prices are still nearly more than double than the majority of locations in the UK.
The growth of the current property market still needs to be observed closely over the next year. As Brexit negotiations continue, the progress and outcomes may have the biggest implications on the property market and the UK’s growth in millionaires.
Guru top tip: Looks to other regions in the UK experiencing property growth. This is a good indicator of economic stability and growth. Cities such as Birmingham and Manchester are experiencing the biggest rise in property growth in the UK, due to an increase in population, investment and amenities.
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