London at risk of missing out as super-rich multiply

Concerns over the tax may lead to other cities attracting wealthy homebuyers at a quicker rate than the capital

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The ranks of super-rich people across the globe swelled to 172,850 last year, and London looks set to be overtaken as the chosen home of the wealthy.

The number of people with assets of $30m (£20m) or more rose by 3 per cent in 2014, and the total is forecast to increase by another third over the next decade to 230,000.

London is now home to 4,363 ultra-high net worth individuals, but its status as the top destination for them is at risk due to concerns over issues such as the potential mansion tax on £2m-plus homes.

Investors have typically been attracted to London’s favourable tax regime, luxury homes and stable political environment. But concerns over the tax will lead to other cities attracting wealthy homebuyers at a quicker rate than the capital, according to “The Wealth Report” from the property agent Knight Frank.

The report shows that London will hold the top spot for the next 10 years for the highest number of ultra-wealthy individuals, but that Singapore will close the gap with a 54 per cent rise in its super-rich population during that period. But Knight Frank predicts that at some point in 2025, New York will overtake  London for the number of super-wealthy residents.

Singapore will attract 1,752 more super-rich, while 1,251 will buy homes in Hong Kong, 1,013 in New York and 907 in London.

Liam Bailey, the head of global research at Knight Frank, said: “London and New York will vie for top spot over the next decade, with New York being the final winner in 2025 and Asian cities becoming increasingly important over Europe.”

Last year the ultra wealthy controlled nearly $22trn in assets – more than the national output of the US and Germany combined.