What do the millionaires of prime central London spend their money on? – words Alan Woods
As one of the most popular destinations in around the world, London is home to many exclusive neighbourhoods, including some of the top residential addresses in the United Kingdom. 2,000 millionaires call Mayfair home; 200 who are earning a nine-figure salary each year and 20 who are billionaires.
It is often believed that these affluent residents do not offer anything of value back into the local economy. However, a new report from Wetherell has proven that to be a misconception and shown that the millionaires of prime central London contribute an ample £2.5 billion a year from their household expenditure. The shopping, employment, and leisure sectors benefit the most from their support with spending through staffing, consultants, luxury shopping, and other expenses.
WHO LIVES IN MAYFAIR?
Mayfair is an incredibly diverse neighbourhood, which has been evolving into a more young and active community over the past few decades. With over 43 percent of residences housing young families, couples, and singles, who are wealthy and highly educated, Mayfair continues to provide apartments with the latest facilities, high-end technology, extravagant lifestyle, and global designs that they have come to expect from the luxurious address.
The neighbourhood is also a highly multicultural community, housing over 42 different nationalities from around the world, and over 60 percent of the residents were born overseas. This mix of nationalities is likely to change as the global economy does. Currently, the US is home to the most billionaires in the world with 540; the second is China with 251 and third is Germany with 120, according to the Forbes Rich List. The number of billionaires in the Middle East and Russian-speaking billionaires has been falling recently, so Mayfair can expect to be forever changing its residents and attracting new international neighbours to the community.
WHAT DO MAYFAIR RESIDENTS SPEND THEIR MONEY ON?
According to data within the report; provided by Westminster City Council, and property market research experts Dataloft and EGI, the typical homeowner living in a property worth over £15 million, spends an estimated amount of £4.5 million in London a year. Owners of homes priced between £5 million and £15 million typically spend around £2.75 million each year on local expenses. Of the £4.5 million, households spend about £2,700,000 on interior design and artwork each year, £644,000 on clothes, and £325,000 on staff. High-value households employing staff usually offer live-in positions and high salaries. These members of staff have a high disposable income and spending patterns to mirror their employers.
Residing in Mayfair puts inhabitants at the heart of world-class culture, fine dining, and exclusive couture. With two-thirds of the top 100 retail brands available to shoppers, it is no wonder that they spend £644,000 on clothing, shoes and jewellery and £254,500 on food, leisure and entertainment, including flowers, wine and food. The West End supports the visitor economy of £22 billion each year, of which it receives 200 million visitors each year, These visitors will spend about £11 billion on West End hotels, restaurants, bars and shops alone. Bond Street is also a world renowned shopping destination and attracts exceptionally high demand from luxury retailers keen to be present on the high street. More recently, demand has spread over into neighbouring Albermarle Street and Dover Street and, as footfall has risen, so too have rental values.
The ‘Luxury Quarter’ is hugely supported by local residents more than tourists and visitors from surrounding cities are able to provide. A recent survey conducted on behalf of Bond Street retailers reveals that the average spend of locals is twice that of a non-resident Bond Street customer.
What do the millionaires of prime central London spend their money on? – words Alan Woods
