Love it or loathe it but London’s super-rich spend £4bn a year on goods and services, making them “major contributors to the UK economy”.
Research by economic consultancy Ramidus Consulting found that in the last 10 years, some 1,338 homes were sold for more than £5m in the “prime” areas of central London. Out of these, at least 60% were bought by overseas buyers.
The research also reports that owners of homes worth more than £15m spend £4m to £5m a year in the UK and those with homes worth more than £5m spend £2m to £3m a year. Even those spending a few months in London were found to contribute a substantial amount to the capital’s economy.
Ben Rogers, director of the Centre for London, told the FT: “The wealth that one sees in the West End makes us all uncomfortable, but it’s hard to deny that the super-rich contribute a lot to the London economy. The problem is their contribution is often hidden.”
The research is based on a survey of agents, “lifestyle managers”, concierge groups and luxury service providers.