London has experienced a significant decrease in its millionaire population, with approximately 11,300 high-net-worth individuals leaving the city in 2024, according to the latest “World’s Wealthiest Cities Report” by Henley & Partners and New World Wealth. This exodus has reduced the number of dollar millionaires in London to 215,700, down from 227,000 the previous year, causing the city to fall to sixth place globally, now trailing behind Los Angeles.
Several factors contribute to this trend. The UK’s recent tax reforms, notably the abolition of the long-standing non-domiciled tax status, have made the country less attractive to wealthy individuals. This change subjects long-term residents to UK taxes on their global income and assets, prompting many to relocate to countries with more favorable tax regimes, such as Portugal, Italy, and the UAE.
Economic considerations also play a role. The growing dominance of the US and Asia in the technology sector has led some affluent tech entrepreneurs to reconsider their base of operations. Additionally, the diminishing influence of the London Stock Exchange, now ranked 11th globally by market capitalization, and the rise of financial hubs like Frankfurt and Dubai have contributed to London’s declining appeal.
The departure of millionaires has broader implications for the UK’s economy. Beyond the loss of tax revenue, the super-rich contribute significantly through property investments, luxury spending, and philanthropy. Cultural institutions, such as the Victoria and Albert Museum, have expressed concerns about potential funding shortfalls due to this demographic shift.
Despite these challenges, London remains one of the world’s most expensive cities in terms of property prices. However, the continued outflow of wealthy individuals underscores the need for policies that balance fair taxation with incentives to retain high-net-worth residents. Proposals such as a tiered annual charge or a “golden visa” for investors are being considered to mitigate the impact of this trend.
As London navigates these economic and demographic shifts, its ability to adapt and implement strategies to retain and attract affluent individuals will be crucial in maintaining its status as a global financial center.
