Third Millionaire Monitor Shows Confidence in Government and Economy is Falling.
Skandia’s third UK report focusing on Britain’s wealthy shows they are losing confidence in the coalition government’s economic policies, with over half having no confidence in the policies.
The lack of confidence is being fuelled by a worsening of household finances for almost two in five millionaires, with almost three in five rating the UK economic situation as being worse now than 12 months ago.
The research also highlights that seven in 10 of those surveyed do not believe that the current government’s policies are doing enough to encourage people to start their own businesses and generate more economic activity.
Although the general mood about the economy is down, more millionaires say they are committed to living in the UK than was the case when the first survey was completed in June 2011, up from 44% to 56%.
This appears to have been helped by the government’s plans to relax the 50% tax band in 2013, as around one in three of the millionaires polled in June 2011 said high taxation was driving them away but just one in seven listed this as a concern now.
Around one in three millionaires surveyed in June 2011 said they were thinking of leaving the UK but this had dropped to just one in six in 2012, although this year’s terrible early summer temperatures and incessant rain meant an increase in those citing the weather as one of the main reasons why they would leave (from 14% in June 2011 to 18% in June 2012).
Other findings of the report include:
- The USA is the most popular destination for millionaires considering leaving the UK, followed by Australia then Spain.
- France has suffered the most in terms of where millionaires would like to relocate compared to 12 months ago, down from first choice (13.3%) in June 2011 to fifth place (6.1%) in the recent poll.
- The government’s ‘mansion tax’ (7% tax on properties worth valued at over £2 million) has resulted in just over a quarter (26.2%) of millionaires saying they will avoid buying properties priced at more than £2 million, with more than one in 10 (11.4%) saying they intend to sell properties priced over £2 million.
- However, the majority (73.9%) are not concerned about owning/buying property over £2 million regardless of the new tax.
- Half (49.9%) the millionaires surveyed own multiple properties. Those under 50 years of age are more likely to own multiple properties (60.3%) than those over 50 (42.2%).
- Spain (26.2%) is the most popular country outside the UK for Britain’s wealthy to own property, followed by France (21.6%) and the USA (14%).