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Explainer: Why are the super rich leaving London?

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Luxuary Cars On Display Amidst Foreign Wealth In Knightsbridge
LONDON, ENGLAND - AUGUST 08: A Gold Ferrari sits outside Chanel on Sloane Street on August 8, 2014 in London, England. Tourists and car enthusiasts have been flocking to the wealthy London district to see some of the world's most expensive and extravagant super cars. Many of the rich owners from Saudi Arabia and Kuwait come to London to escape the summer heat at home and to show off their cars before moving on to other European cities such as Paris and Cannes. (Photo by Dan Kitwood/Getty Images)

London is a city of extremes, with pockets of incredible wealth and areas plagued by deprivation. For a long time, the capital has been the place of choice of the international extra-rich. This caused chaos and scrutiny last year when sanctions against Russian oligarchs were first implemented.

Now, however, it looks like the megarich might be ready for a season of migration exactly like the birds. Last year 1,400 high-net-worth individuals – people with more than £1m in wealth – abandoned the UK, according to data by Henley & Partners. Off they went with their Ferraris and Lamborghinis from Chelsea to new pastures – mainly the Middle East and Asia. 

Why did the extra-rich settle down in London in the first place?

Its financial centre, international outlook and generous tax breaks made it good for business. It’s close to continental Europe but also has strong ties with companies across the pond.

But after Brexit, many have started reconsidering whether it makes business sense to stay here. All the focus on the non-dom status and Labour’s promise to scrap it might have also played a part. The most sought-after location now seems to be the United Arab Emirates. 

This means fewer extra posh dinners, events and openings in West London that really no one but a tiny bubble of millionaires can afford to go to. But it also means less tax money in the government’s pocket – and experts say it could have a strongly negative long-term impact on the economy. 

More and more “super prime” properties – houses costing more than £10m – will become empty. Who knows who will be able to afford to move in. What’s sure is that the presence of this wealth has shaped, for better or worse, how our capital looks and functions – its streets, its buildings, and the whole ecosystem that exists to retain this money and make it flow into the economy. It will be interesting to see what happens if, and when, this ecosystem has barely anyone left to function for.