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NWWealth

UK Wealth Report 2019 The wealthiest cities and towns in the UK

Publication date: November 2019 UK Wealth Report Š New World Wealth


NWWealth 1. Introduction This report is the result of New World Wealth’s extensive research covering the wealth market in the United Kingdom. Figures mentioned in this report are from New World Wealth unless otherwise stated. The following wealth bands are considered in our analysis.

Note: “Wealth” refers to the net assets of a person. It includes all their assets (property, cash, equities, business interests) less any liabilities.

Wealth Tier

Definition

Billionaires

Those individuals with wealth of US$1 billion or more.

Centi-millionaires

Those individuals with wealth of US$100 million or more.

Multi-millionaires

Those individuals with wealth of US$10 million or more.

Millionaires (HNWIs)

Those individuals with wealth of US$1 million or more.

Mass Affluent

Source: New World Wealth

UK Wealth Report © New World Wealth

Those individuals with wealth of over US$100,000.


NWWealth 2. Benchmarking UK wealth in context

UK wealth stats (for June 2019): 

The UK is the 4th largest wealth market in the world (in terms of total wealth held) after USA, China and Japan. Notably, it ranks ahead of Germany on this measure. People living in the UK together hold US$9.1 trillion in wealth. Around US$3.3 trillion (36%) of this is held by millionaires (HNWIs).

The average UK individual has net assets of approximately US$138,000 (wealth per capita).

There are just over 760,000 millionaires (HNWIs) living in the UK, each with net assets of US$1 million or more.

There are approximately 24,000 multi-millionaires living in the UK, each with net assets of US$10 million or more.

There are around 1,100 centi-millionaires living in the UK, each with net assets of US$100 million or more.

There are 95 billionaires living in the UK, each with net assets of US$1 billion or more. Only three counties worldwide have more billionaires than UK, namely: USA, China and India.

UK Wealth Report © New World Wealth


NWWealth 3. The wealthiest cities in the UK The following table ranks UK cities by total wealth. Note: “Total wealth” refers to the private wealth held by all the individuals living in each city. It includes all their assets (property, cash, equities, business interests) less any liabilities.

It is important to note that larger cities such as Birmingham and London have an advantage over smaller cities such as Harrogate (due to their relative populations).

The Big 3: 

London: Total wealth held in the city amounts to US$2.4 trillion. This makes London the 4th wealthiest city in the world (after New York, Tokyo and San Francisco). The most affluent suburbs in London include: Knightsbridge, Belgravia, Mayfair, Chelsea, Kensington, Westminster, Hampstead, Richmond, Wimbledon, Regents Park and St Johns Wood. The houses and apartments that overlook the parks (Hyde Park, Regents Park and Hampstead Heath) are especially affluent. As part of this study, location analytics specialists Webster Pacific created a heat map to give a better indication of which neighborhoods are the wealthiest in London. See heat map here.

Manchester & Trafford: Total wealth held in the area amounts to US$262 billion. Manchester is the main financial and business hub in Northern England. It is also one of the fastest growing cities in the UK (in terms of wealth growth over the past 10 years). These figures include wealth held in Hale and Altrincham (both affluent towns in Trafford). Major sectors in the area include: financial services, manufacturing, retail and IT.

Edinburgh: Total wealth held in the city amounts to US$182 billion. Edinburgh is the financial capital of Scotland and the 3rd wealthiest city in the UK. Major sectors in the city include: financial services, professional services and diversified.

UK Wealth Report © New World Wealth


NWWealth Total wealth (US$bn)

HNWIs ($1m+)

Multi-millionaires ($10m+)

Billionaires ($1bn+)

2 406

318 200

10 760

42

Manchester & Trafford

262

25 700

1 060

4

Edinburgh

182

10 900

420

4

Birmingham

178

9 500

310

2

Bristol

150

9 000

340

2

Glasgow

119

7 700

290

3

Leeds & Bradford

99

5 900

170

2

Reading

80

6 400

200

2

Leicester

66

4 900

130

-

Nottingham & Derby

62

4 600

90

-

Oxford

59

5 800

150

3

Newcastle

58

4 800

110

1

Cambridge

55

5 600

140

2

Maidenhead

51

7 700

220

3

Liverpool

42

3 900

80

-

Bath

33

4 900

110

2

Harrogate

28

4 800

110

2

Cheltenham

25

4 000

110

2

Poole

23

3 900

100

1

City London

Note: HNWI numbers rounded to nearest 100. Only includes people living in each city (residents). Figures for June 2019. Source: New World Wealth

UK Wealth Report Š New World Wealth


NWWealth 4. Spotlight on small towns in the UK

There are a number of affluent small towns and villages in the UK that are also home to a large amount of wealth. We recently compiled a list of the 20 most affluent small towns in the UK, based on the number of multi-millionaires with homes in each town.

It is interesting to note that wealth growth in these towns has generally outperformed wealth growth in the big UK cities over the past 10 years. Top performers (in terms of wealth growth) include the likes of: Taplow, Marlow, Henley and Bray.

Notably, over the past few years, many wealthy Londoners have moved out of the city to nearby small affluent commuter towns such as Taplow. This is a notable trend that is gaining momentum.

Notes: 

We only included towns with less than 30,000 people in this review, so larger affluent towns are excluded. Towns classified as part of London, such as Richmond, are also excluded.

Larger towns such as Windsor (which has a population of over 27,000) have an advantage over smaller towns such as Bray (which has a population of only 4,600).

Refers to the number of multi-millionaires with homes in each town. Figures include residents and 2nd home owners.

UK Wealth Report © New World Wealth


NWWealth Town / Village

County

Multi-millionaires ($10m+)

Windsor

Berkshire

250

Ascot

Berkshire

220

Virginia Water

Surrey

210

Leatherhead

Surrey

200

Weybridge

Surrey

190

Henley

Oxfordshire

160

Marlow

Buckinghamshire

150

Berkshire

100

Buckinghamshire

90

Berkshire

80

Buckinghamshire

60

Shiplake

Oxfordshire

60

Sonning

Berkshire

60

Taplow

Buckinghamshire

50

Alderley Edge

Cheshire

40

Hale

Trafford

40

Cobham

Surrey

40

Salcombe

Devon

30

Pangbourne

Berkshire

30

Sandbanks

Dorset

30

Bray Beaconsfield Cookham Bourne End

Note: Refers to the number of multi-millionaires with homes in each town. Figures for June 2019. Source: New World Wealth

UK Wealth Report Š New World Wealth


NWWealth 5. UK HNWI trends and demographics

As mentioned, there are just over 760,000 millionaires (HNWIs) living in the UK, each with net assets of US$1 million or more. The following table examines the most common degrees and certifications held by these HNWIs.

Type of degree / area of study

% of HNWIs

Economics and Finance (PPE, MBA, CFA etc.)

22%

Law

17%

Computer Sciences & Tech

10%

Accounting (CA)

9%

Medicine

8%

Maths, Stats & Actuarial

5%

Engineering

5%

Languages & Literature

4%

Other

20%

Total

100%

Note: Refers to the last degree/certification achieved by the HNWI. Figures for June 2019. Source: New World Wealth

UK Wealth Report Š New World Wealth


NWWealth The following table provides a breakdown of the top universities for producing UK HNWIs.

University

% of HNWIs

Oxford

20%

Cambridge

16%

LSE

10%

University College London

8%

University of Manchester

6%

King’s College London

5%

Imperial College London

5%

St Andrews

4%

University of Edinburgh

4%

Other

22%

Total

100%

Note: Refers to last university attended by the HNWI. Figures for June 2019. Source: New World Wealth

UK Wealth Report Š New World Wealth


NWWealth The following table provides a breakdown of the main industries in which HNWIs in the UK have acquired their wealth.

Sector

% of HNWIs

Financial & Professional Services*

26%

Real Estate

12%

Tech & Telecoms

10%

Media

9%

Diversified

9%

Healthcare

8%

Retail & Fashion

5%

FMCG

4%

Basic Materials

4%

Manufacturing

3%

Hotels & Leisure

3%

Transport and Logistics

2%

Other

5%

Total

100%

* Financial & professional services includes banks, law firms, consulting firms, fund managers and wealth managers. Note: Figures for June 2019. Source: New World Wealth

UK Wealth Report Š New World Wealth


NWWealth 6. UK luxury and wealth management trends

Luxury sector The UK luxury sector generates revenue of approximately US$50 billion a year, making it the 2nd largest luxury market in the world after USA. This figure includes: luxury cars, luxury clothing & accessories, luxury watches, private jets, yachts, private members clubs and luxury hotels.

Notably, a large portion of UK luxury sector revenue comes from luxury hotels. Most of the UK’s most exclusive hotels are located in London. Notable examples include: the Ritz, the Mandarin Oriental and Claridge’s.

Wealth management sector As of June 2019, UK based wealth managers together managed around US$2.3 trillion in HNWI funds, making it the 3rd largest wealth management centre in the world after USA and Switzerland. Notable players in the UK market include: Barclays Wealth, Coutts, HSBC, Investec, St James's Place, Brewin Dolphin, Rathbones, Rothschild & Co, C.Hoare & Co, Stonehage Fleming, SandAire and Smith & Williamson.

The UK and especially London is one the top global hubs for family offices - we estimate there to be over 200 family offices with a presence in the city – together they manage around US$850 billion in HNWI wealth.

UK Wealth Report © New World Wealth


NWWealth 7. Sources and methodology

We use a model to calculate wealth breakdowns for each country, with key inputs including: 

Stock market stats in each market.

Property stats in each market.

Income stats in each market.

GDP per capita stats in each market.

Wealth data from our in-house HNWI database.

These metrics are combined together in our model to calculate the total wealth held in each country and to calculate the number of people in each wealth tier. For the top wealth tiers (such as billionaires and centi-millionaires) we mainly rely on our in-house HNWI database.

Our model also maps historical wealth growth trends in each country by considering: 

Currency movements in each market vs. the US$ (note: all our stats are in US$ terms).

Stock market movements in each market (in US$ terms).

Property price movements in each market (in US$ terms).

The average person worldwide has around 50% of their wealth tied up in residential property and equities so large residential property market and stock market moves heavily impact on the total private wealth held in a country.

UK Wealth Report © New World Wealth


NWWealth We then use our HNWI database for the demographic splits within each country (i.e. city, sector, age and suburb wealth breakdowns). So for instance if 30% of the HNWIs in our UK database are living in London, then that would mean that London should account for around 30% of the UK’s HNWIs.

We have a sample of around 150,000 HNWIs worldwide in our database. Most of the individuals in our database have the following work titles: Directors, Chairman, CEOs, Founders and Partners. We do not give out the names of these individuals to anyone. We purely use this database for in-house statistical studies.

We also use public prime property stats (property registers and property sales stats) as a sanity check on all our city and suburb wealth breakdowns. Specifically, we look at the number of homes valued at over a million US$ in each area.

Our wealth forecasts take into account: 

GDP forecasts.

Recent wealth migration trends - which we see as an insight into future wealth trends. So for instance if a large number of HNWIs are leaving a country that is probably a bad sign for future wealth growth.

Competitiveness of country’s wages relative to worldwide peers.

Competitive advantages of each economy.

Safety levels in country and the efficiency of the local police service.

Ease of doing business in country.

Education standard in country - special focus on Science, Maths and Literacy.

Level of innovation and entrepreneurship in country.

UK Wealth Report © New World Wealth


NWWealth 8. About the Author

New World Wealth is a global market research group, based in Johannesburg, South Africa. We specialize in ratings, surveys, country reports and wealth statistics. We also provide management consulting and public relations services to our clients. Our research covers 90 countries and 150 cities worldwide.

Services on offer include: 

Ratings and surveys.

Country, city and regional wealth statistics.

Residential property surveys.

Wealth migration studies.

Management consulting.

Custom research.

For more information on New World Wealth please visit www.newworldwealth.com.

UK Wealth Report © New World Wealth


NWWealth

Contact Andrew Amoils New World Wealth andrew@newworldwealth.com +27 11 706 1185 www.newworldwealth.com

UK Wealth Report © New World Wealth

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UK Wealth Report 2019  

UK Wealth Report 2019