London has long been a location popular with the affluent. A well connected city with a rich history as a leading financial centre has provided plenty of motivation for high net worth individuals to stay loyal to London, even in the wake of Brexit and a pandemic. Now, new research has revealed that the wealthy in London don’t expect the status of the city to change in the coming years – but this hasn’t stopped anxieties around personal wealth from surfacing.
London as one of Europe’s foremost financial centres
The UK economy has been a hot topic over the course of the past year as the ripple effect of global factors, government policy and COVID-19 have all had an impact. However, for those who fall into the category of high net worth individuals (with investable assets of more than £250,000) the future in London looks bright. This group has a positive outlook when it comes to the status of London as a leading financial light in Europe, now and over the course of the next decade. Someone who is wealthy in London is more than twice as likely to feel good – ‘very confident’ – about the UK economy over the next six months, compared to someone living in the West Midlands, for example.
More money, more problems?
Despite the confidence that the high net worth individuals of London seem to feel about the UK economy, and the status of the capital, in the coming years many are still anxious about their own assets. In fact, nearly two thirds experience this anxiety over their own money, especially those who are part of younger generations. And it seems that the more assets someone has, the more anxious they are likely to be about them. Two thirds of high net worth individuals with assets of more than £1 million said they experienced this anxiety, compared to 54% of those with assets up to £1 million.
There are still concerns over the longer term
While there is obvious faith in the potential for recovery that the UK economy has, at least those parts that are likely to have an impact on the assets of high net worth individuals, the wealthy are still concerned about the destabilising impact of recent events. COVID-19 is highlighted as the biggest threat to wealth, closely followed by concerns around inflation. In fact, most say they have concerns over the longer term when it comes to their own money and feelings of anxiety surrounding wealth are becoming increasingly common. Uncertainty is a key factor in undermining confidence, which is why planning and protective measures have become such a vital part of the process of handling high net worth wealth today.
The wealthy of London have every faith that the capital is going to continue to thrive over the next decade – and remain a leader in Europe. However, that doesn’t allay the fears that many have when it comes to their own personal assets. Carpe Diem London is a trusted advisor within the UK property market, matching investors with great investment opportunities. Find out more about how Carpe Diem London’s real estate services can help you.