Number of UK millionaires grows despite recession and low growth
The number of net millionaires in the UK has grown by almost 8% over the past two years, according to London-based research company Coredata.
Weak economic growth and challenging times for many households and businesses has not dampened the ability of many people in Britain to make money, says the research.
Over the past two years, the UK has seen an additional 22,338 residences became net asset millionaire households, bringing the total up from 284,317 millionaire households in October 2010 to 306,655, or 1.16% of all households.
The number of UK households has increased by an approximate 195,762 over the past two years, due to a rise in the size of the population from 61.8 million to 62.3 million. There are 26.4 million households in the UK. Average wealth level of British HNW households is £1.34 million.
Since 2010, Britain’s net population size has increased by about 500,000, according to data from the Office of National Statistics. Craig Phillips, head of UK & Europe at CoreData Research, said: “One of the few positives of low economic growth in Britain is that official interest rates remain at near zero levels where they have been for 44 consecutive months since early 2009. This makes the cost of capital investment much more attractive than holding money in cash.”
“Clearly a large number of individuals have been able to use their own funds or borrow money at low rates and make some positive investment decisions over the past two years,” he adds. “It remains to be seen if these investments were in distressed debts that lost out in the downturn or whether affluent people have simply been shrewd in growing their wealth since 2010.”
The study also includes an analysis of wealthy investment traits, risk appetite, likelihood to accept financial advice and perception of alternative investments.