Opinion

London Set to Benefit as World's Wealthy Grow

The ranks of the world's wealthy are set to grow and London is poised to be one of the beneficiaries of this upward trend. According to Knight Frank's seventh annual Wealth Report, the number of high-net-worth individuals - defined as someone with $30 million (£53.1 million approximately) or more in net assets - increased by 8,700 in 2012. However, this five per cent rise will seem minor over the next decade, with growth set for 50 per cent between now and 2023.

This is good news for London, which will continue to be one of the top destinations in the world for the wealthy, retaining its position as a safe haven. The city will, however, be competing with New York for the title of ultimate hotspot until 2023, when Asia will begin to gain ground.

Liam Bailey, global head of residential research at Knight Frank, explained: "The largest concentration of wealth is currently based in the established centres of North America and Europe, but there is set to be rapid growth in Asia, Latin America and the Middle East. In the next decade we will see the biggest increase in ultra-wealthy individuals in cities such as Sao Paulo, Beijing, and Mumbai."

Nonetheless, London need not fear dropping off the international radar any time soon. Figures from the Land Registry have shown that prices are continuing to rise in the capital. Property values in prime postcodes have soared by a record breaking GBP 120,000 over the last year alone and Kensington and Chelsea are now the only parts of the country where the average cost of a property is over £1 million.  If you want a home in these postcodes you now need to come up with approximately £1.08 million. This is thanks to nearly 12.5 per cent price growth over the year - the equivalent to £118.754.

Analysed against growth in the rest of the country, these figures can be shocking. The average cost of a home in the north east is just £99,294 and £106,527 in the North West. So great is the divide between the north and south that you can now purchase a home in the north east for the price of a London flat.

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