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Nearly one in 10 British households will have millionaire status within a
decade, an authoritative new study has predicted.
Despite the global economic slowdown and falling property prices, the number
of households worth £1m or more will increase from 1.5m to over 2.4m by
2017, the study says.
The analysis by the Economist Intelligence Unit and Barclays Wealth also shows
that the number of households worth £5m will more than double over the same
period, to more than 126,000.
Britain is forecast to slip behind China in the global wealth index, defined
by the net worth of the population. But it will still be the fourth
wealthiest nation – ahead of Germany, France, Italy, Canada and Spain.
America and Japan will occupy the two top spots.
The study, which claims to be the most comprehensive predictor of global
household wealth, includes disposable assets such as cash, shares, insurance
and pension funds as well as equity held in homes and land.
Barclays says the combined wealth of the 2.4m new “millionaire households”
will exceed £6.9 trillion in nine years’ time.
Michael Dicks, head of research at Barclays Wealth, said: “Our household
wealth index reveals that the UK will continue to outperform Europe and
remain a significant centre for wealth generation over the next decade.”
“We have an enterprising financial services sector, a favourable disposition
to free enterprise, flexible labour markets and high per capita potential
GDP growth rate. These factors combine to create an environment that is
conducive to wealth creation.”
Dicks said these factors would be enough to ride out the current credit crisis.
Rob Mitchell, of the Economist Intelligence Unit, said falling house prices in
the short term would not affect the longer term prospects for wealth
creation in the UK. “Our forecasts show between now and 2017 there will be a
net increase in house price values, along with increases in financial wealth
– cash, stocks and bonds,” he said.
Richard Perks, a wealth analyst at Mintel, a market intelligence company, said
rising wages, a flexible job market and increasing meritocracy would
continue to have positive impacts on Britain’s economic growth.
There are 26m households in the UK now but there are expected to be 28m by
2017.
I seem to recall similar statistics at the height of the dot com boom that caused a rush by all the banks into 'Wealth Management'. Most soon fell by the wayside in the subsequent bust.
Oh and yes - a large dollop of this is INFLATION.
harry e, London,
It's called inflation and is not something to wish for.
Paul, Brighton,
Being in millionaire in a currency that is going down the tubes is not such a great thing when you don't actually get a great deal for your money - just look at Zimbabwe.
rick, sydney,
High levels of wealth are incompatible with looking after the environment,and combatting global warming(Only a 1 in 20 chance that there isn't g.w). Most wealthy business people are in a monopoly situation,and monopolies are deleterious to the consumer. Won't be any more housing bubbles in UK
RDaggett, Gateshead, England
I bet you that statistic is more than 1 in 10 for those who will shortly be joining the ranks of the poorest as the wealth gap widens.
judy, Liverpool, England