Britain's Wealthiest Surveyed by Mintel

Britain's wealthiest people are apparently quietly confident about their finances for the year ahead. At the same time, the country's increasing concentration of wealth is unlikely to alter over the coming 12 months. These are among the main findings of a new Mintel report entitled 'Private Banking & Wealth Management'.

This latest research, questioning those with an average of £235,000 in investments, found that 50% have faced a decline in their financial assets during the past 12 months. Surprisingly, only 14% said they had felt wealthier. The most noticeable decline took place among Britain's most wealthy adults (those holding a minimum of £100,000 in assets), together with those aged 55 and over.

Nevertheless, looking at GB's overall wealth (including property), rising house prices and income growth has been widespread during 2001. As a result, some 26% of Britain's richest consumers felt better off in 2001, compared with 21% who felt less wealthy. When asked about overall financial expectations in the coming 12 months, wealth owners were fairly upbeat. Nearly half (46%) expected their wealth to improve, compared to 15% who expected it to deteriorate. Men aged below 55, and better-off wealth owners were most positive about overall wealth prospects in the next 12 months.

'Research showed wealth owners' confidence picking up during 2002, suggesting they will have a growing need for investment advice. Given market analysts' forecasts of improving stock markets in 2002 this should continue to favour Britain's wealthiest who have the highest levels of shareholding. The increasing concentration of wealth that has been a feature of the last decade is unlikely to change' comments John Gilbert, Senior Financial Services Consultant.

In terms of investments, the research has revealed that shares were likely to represent the most favoured option for the year ahead at 46%. This was followed by investing in cash at 25%, property at 16% and bonds at 8%. The remaining 5% of respondents were likely to acquire a mix of other investments. Almost six out of ten wealth owners are likely to invest in UK shares, while over a third (39%) will favour European shares and a fifth (22%) will prefer US shares.

Based on Inland Revenue wealth data, Mintel estimates that among the top 5% of wealth owners (those with overall assets of around £500,000 - estimated at some 2.1 million individuals) there has been a reduction in the value of securities held of some 13% in the past two years. This fall in value however, will be far higher among the top 1% of individuals - this group holding proportionately more of its assets in stocks and shares. Over the same period, the value of property held among the top 5% of wealth owners has increased by just over a quarter. This shift in asset values tends to favour the young working wealth owner rather than the older, retired wealth owner.

All articles 2006-22 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.

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