The United Kingdom is becoming less attractive to wealthy individuals, according to a comprehensive new report that attributes this trend to Labour's fiscal policies, particularly the abolition of the non-dom tax status.
Global Wealth Surge
Knight Frank's annual Wealth Report reveals that the global population of ultra-high net worth individuals—those with assets of $30 million (£22 million) or more—has surged from 551,435 to a record 713,626 over the past five years. The number of billionaires has also increased from 2,723 to 3,110 in the same period, with projections suggesting it could reach nearly 4,000 by 2031.
Liam Bailey, head of research at Knight Frank, noted that billionaire and millionaire wealth has been "supercharged" by profits from the technology industry boom, especially artificial intelligence (AI). The United States maintains the largest share of high net-worth individuals at 251,135 in 2026, followed by China with 121,677 and Germany with 38,215.
UK Lags Behind
While Indonesia is expected to see the fastest growth in high net-worth individuals—an 82% increase from 3,833 to 6,966 by 2031—the UK is forecast to have the fifth lowest growth. Its number is set to rise modestly from 27,876 to 30,942, maintaining its position as the fourth-highest globally but with significantly slower growth compared to China (23%), Germany (32%), Australia (59%), and the United States (54%). This follows a mere 12% growth from 2021 to 2026, indicating a potential decade of stagnation in attracting wealthy individuals.
Rory Penn, chair of the private office business at Knight Frank, commented that wealth creation is occurring against a "more complex global economic backdrop." He added, "The ultra-wealthy are becoming markedly more mobile, yet the list of markets where they feel genuinely comfortable investing or basing their families has narrowed."
Impact of Non-Dom Abolition
The report specifically highlights Chancellor Rachel Reeves' decision to abolish the non-dom tax status, which took effect in April 2024, as a key factor reducing demand for property in London among wealthy individuals. Citing a study from the Centre for Economics and Business Research, the report states: "Tinkering with wealth and property taxes has continued alongside the rise of low-tax competitors like Dubai. October 2024 prompted a flurry of high-profile wealthy individuals to announce they were relocating."
Office for Budget Responsibility projections suggest that as many as 20% of affected non-doms might leave, roughly 1,200 people, while the Centre for Economics and Business Research estimates the figure could be closer to a quarter. The Treasury was approached for comment but did not respond.
