36,000 new millionaires created off back of property boom despite cost of living pinch
While many Brits continue to struggle with the cost of living crisis, there were 36,000 new millionaires in the UK over the last 12 months.
A boom in property helped the High Net Worth Individual (HNWI) population of the UK grow by 6.3 per cent in 2021, as wealth increased by almost 7.5 per cent in that time. The previous year during the pandemic it was -3.0 per cent and -1.1 per cent.
The figures were published in Capgemini’s annual wealth report, which highlighted the major cause for the boom in millionaires in Britain was the property market. A HNWI is someone with investable assets of more than $1m (£830k) – but excludes primary residence, collectibles, consumables, and consumer durables, and Britain now boasts more than 600,000 of them.
The study had demand outpacing supply in the property market which drove up house prices, as the UK economy came out from the pandemic in 2021 growing 7.5 per cent.
The survey, which questioned 2,973 HNWIS across 24 major wealth markets, placed the US as the top of the global tree with 480,000 HNWIs, followed by China at a shade under 350K, while the UK and Germany lead Europe at 106K and 108k.
Following the pandemic, the report also said 70 per cent of HNWIs have invested in digital assets, which have forced firms into rethinking their offerings for investments.