Political uncertainty and the threat of a potential mansion tax on £2m-plus homes is threatening London’s status as the top destination for the world’s super-rich, property consultancy Knight Frank warned.
The firm’s annual Wealth Report released today shows London was home to 4,364 ultra high net worth individuals (UHNWIs) – those with $30m (£19.65m) in assets or more – last year, more than double its closest European rival Frankfurt and higher than any other city in the world.
The capital is expected to hold on to its top spot over the next 10 years, with Knight Frank forecasting an extra 907 wealthy individuals in the capital by 2025.
However, Singapore’s rapid growth means it will have almost closed the gap by 2025 with a 54 per cent rise in super-rich residents. Meanwhile, the relative stability of other cities such as New York is likely to further challenge London’s dominance as a haven for the wealthy.
“The recent and prospective changes to mansion tax and capital gains are one of the reasons London could cede that top position. One of London’s strongest attractions is its stability. However, we haven’t reached a point yet where investors know where they are going to be yet in terms of financial stability,” he said.