Wealth on the rise: UK population with £5m grows by 19% according to new report
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- New figures show there are 619,000 millionaires in UK today, up from 528,000 in 2008
- There are 86,000 millionaires with a wealth of £5m or more living in the UK
- Millionaire population set to grow by a third by 2020
- Wealth creation has grown across the country and will continue between now and 2020, particularly in the North East and Scotland
A new report released today (21st March) by Barclays has revealed that the number of individuals with more than £5 million has increased by 19 per cent - to 86,000 people - in the past two years. As the wealthy start to recover from the downturn, the millionaire population is also on the rise: today there are 619,000 millionaires living in the UK, compared to 528,000 in 2008.
The report, entitled the 'Barclays 2011 UK Wealth Map' - produced in conjunction with Ledbury Research - provides a snapshot of the wealth landscape in the UK and for the first time shows the concentration of wealth in each of the UK regions, whilst forecasting the growth of the wealthy population from now to 2020. It also looks at societal and lifestyle factors, such as property prices, shopping, education and philanthropy.
Millionaire population set to grow
The report reveals that the number of millionaires fell by 15 per cent to 528,000 by the end of 2008 as the effects of the economic downturn were felt across the UK. But the report findings also confirm an outlook of growth. The return of confidence and consequent 17 per cent upswing now means there are 619,000 millionaires residing in the UK.
This positive outlook looks set to continue and the 2011 UK Wealth Map predicts that the number of millionaires in the UK will grow by a third by 2020, meaning there will be 826,000.
David Semaya, Head of UK and Ireland Private Bank at Barclays, comments on the findings of the report: "Despite one of the deepest recessions ever experienced by this country, these findings indicate that wealth creation is starting to recover and this trend is set to continue at a steady pace. We are hopeful that this will contribute to growth in the wider economy and help boost regional expansion in the coming years.
"Even with lingering uncertainty in this new economic landscape, there are indications that confidence is returning across the regions and that an improvement in investment conditions will be one factor encouraging entrepreneurs to look at how they can grow their businesses or restructure them. Our challenge now is to help them navigate this changing environment."
Wealth across the regions
The report also looks at the spread of wealth across the UK regions. Unsurprisingly, the majority (46 per cent) of UK-based millionaires live in London and the South East. The Midlands is the second wealthiest region with 92,000 millionaires. The North West has the third-highest, with 64,000 living in the region.
Despite all the UK regions experiencing similar levels of growth in the number of millionaires over the past two years (between 15 and 19 per cent), the report reveals that some regions will now see further increases in the size of their millionaire populations. The number of millionaires in all regions will increase between now and 2020, with the North East seeing the highest growth. This region's total millionaire population will rise by 45 per cent to 20,000 by 2020. Similarly, Scotland will see an increase of 38 per cent to 55,000 millionaires.
Region-by-region wealth in 2010 and the forecasted growth to 2020:
|Region||Wealth in 2010||Total millionaire growth to 2020|
|London and South East||287,000||