The UK's Wealthy are Currently Experiencing Very Different Fortunes

LONDON, August 16, 2012 /PRNewswire/ --

• Ultra wealthy see largest recent gains
• 2007 shuffled the pack…
• … before 2008 saw the wealthiest lose the most

New data on the wealthy population in the UK produced by Ledbury Research reveals just how volatile the fortunes of the wealthy are in the country.

The data, contained in Ledbury's Wealth Size data set, shows that while those with £1m or more managed to grow their wealth by a respectable 14% during 2011, those with £10m and above grew theirs at twice this rate (28%) and those with a minimum of £100m recorded a massive increase of 43%.

James Lawson, a Director at Ledbury Research, comments, "This represents the highest divergence in performance of the top and bottom ends of the wealthy population since Ledbury began its in-depth tracking in 2006, and underlines the current turbulence in wealth distribution."

"At the outset of the financial crisis in 2007, many of the wealthy dropped down the wealth bands.  More specifically, the numbers and wealth of millionaires grew (10.7% and 0.2% respectively), whilst those worth more than £50m saw their population and assets fall.  

"By 2008, when the crisis had taken root, every wealth band above £1m saw a drop in their fortunes, though it was felt more acutely by the ultra high net worth individuals where those worth over £100m lost 33%."

"Most recently, we have seen a recovery in the fortunes of the existing wealthy, with those at the wealthier end of the spectrum growing much faster both in numbers and total net wealth. The contrast between the top end and the lower end is further exacerbated by the fact that there hasn't been an influx of newly wealth individuals into the ranks," explains James Lawson.

The changes have altered the mix of wealthy individuals in the population, with wealthier people making up a growing share. As at the end of last year, Ledbury estimates that there were nearly 650,000 individuals in the UK with £1m or more, 37,000 with £10m and above and 2,100 with £100m or more.

Ledbury Research expects this dynamic to continue into 2012, although to a lesser extent than in 2011.

                       Number of individuals    Growth in total net wealth 
    Wealth Levels                      (2011)                   (2010-2011)

    GBP1m or more                    650,000                           14%
    GBP10m or more                    37,000                           28%
    GBP100m or more                    2,100                           43%

Ledbury Research's data is sourced from its Proprietary Wealth Model, which estimates the total net wealth of residents in the country and then draws on the company's unique tracking of the distribution of wealth to provide granular data into the many wealth levels. "Wealth is much less evenly distributed amongst the population than income and much harder to accurately track," comments James Lawson. Ledbury has worked with three different university teams in building and developing its wealth model, and its wealth distributions draw on data from national statistics bodies, its own primary research and other inputs.

About the UK Wealth Management Research Portfolio

The Wealth Size data set is part of the UK Wealth Management Research Portfolio, which has a clear focus on high net worth individuals (HNWIs) in the UK, and looks at them specifically through the eyes of a UK wealth manager. In the range of reports and database Ledbury Research maps, tracks and segments HNWIs in a way that has never been done before publicly; with each output combining to provide the industry with a very complete insight.

About Ledbury Research

The market research agency that exclusively focuses on the wealthy around the world.  It is notoriously difficult to gain access and detailed knowledge of the wealthy, yet these individuals are a sector of the population that holds a great deal of consumer influence and disproportionate economic power. Ledbury has a decade of experience focusing exclusively on this group and have developed specialist research approaches and skills to access, engage and understand them.  Ledbury is known throughout the industry for its innovation, intelligence and discretion, as well as earning clients' trust and fulfilling the exacting standards that such prestigious brands naturally require from their partners.