A new forecast by Spear’s in conjunction with WealthInsight shows that the total wealth of the UK’s richest is expected to grow by 12.5 per cent from 2014 to 2016 – ahead of other major European economies Germany, Spain, France and Italy.
Growth in the average wealth per UK millionaire is also predicted to climb to 6.5 per cent in the two years until 2016.
The data was compiled by financial analysts using WealthInsight’s unique model and is based on an overall five year review period. A complex set of economic variables were assessed including GDP, local stock market performance, inflation measures and real estate market.
Both Germany and Spain’s high net worth wealth is expected to grow by 11.7 per cent over the next two years. France should see growth of 10.5 per cent while Italy is set to experience growth of 9.2 per cent among its country’s wealthiest during this period.
Commenting on the findings, Oliver Williams of WealthInsight said: ‘Over the next two years, figures show that growth in total HNWI wealth in the UK will be greater than in Germany, Europe’s largest economy. Though Germany is Europe’s top country for sheer number of millionaires, in both countries the wealthy are getting wealthier faster than anywhere else in Europe.’
The appeal of the UK’s pro-business laws and global links – as well as London’s dominance in global finance – means it is expected to attract more overseas wealth than its European rivals up until 2016 and potentially beyond.
‘Spain and Italy’s economic woes will take longer to repair themselves following the Euro crises and no imminent signs of growth are therefore seen among the wealthy,’ said Williams. ‘Italy also, along with France, has introduced taxes considered hostile to businesses and wealthy individuals alike, driving many millionaires towards the UK’s shores.’
Josh Spero, editor of Spear’s, said: ‘It’s great news that Britain’s collective wealth is increasing, but Britain is only an island in a geographical sense – we are closely connected economically to our European neighbours and should hope for their wealth to grow too. There is also, of course, the issue of wealth spreading through society – we don’t want inequality, which is socially damaging, to grow at just as fast a rate.’