Why Are Millionaires Leaving London in Droves? New Report Reveals Key Reasons

London: London, once a global magnet for the wealthy, witnessed a mass exodus of millionaires in 2024. Over 11,000 millionaires left the British capital between January and December, according to a new report by Henley & Partners. Most of these high-net-worth individuals chose Asia and America as their new homes, citing rising taxes, economic uncertainty, and the aftershocks of Brexit as major factors behind their departure.

This migration trend, although not entirely new, escalated significantly over the past year. Experts observed that the frequency and scale of millionaire exits had risen exponentially, threatening London’s long-held status as a global wealth hub.

London’s Decline from the Wealthiest Elite

For decades, London proudly held the title of the city with the world’s largest number of dollar millionaires. But according to the World’s Wealthiest Cities Report, the city lost 11,300 millionaires in 2024 alone. The figure marked the highest outflow of millionaires in Europe, with Moscow trailing behind at 10,000 despite its ongoing conflict.

The total number of millionaires in London dropped from 227,000 to 215,700 within a year. As a result, the city dropped out of the global ‘Top 5 Wealthiest Cities’ list for the first time in decades. Los Angeles replaced London at number five, as per the report jointly published by Henley & Partners and New World Wealth.

“London is falling,” the report warned, underlining a steady decade-long decline. Since 2014, London has lost 12% of its wealthiest residents, denting its image as a global capital for affluence and opportunity.

Also Read: US Suspends 26 Percent Tariff on Indian Imports Until July 9

Brexit, Taxes, and Tech Shift Behind the Wealth Drain

According to Andrew Amoils, head of research at New World Wealth, the reasons for the exodus were multifaceted. “The growing dominance of Asia and America’s lead in tech caused several tech entrepreneurs and millionaires to reconsider their base,” he explained.

He also said in a written statement to AFP that "Brexit has arguably had an exacerbating effect on this." Amoils pointed out that London’s high taxation was pushing millionaires away. “Capital Gains Tax and estate duty rates in the UK are amongst the highest globally. This deters high-net-worth individuals, wealthy entrepreneurs, and retired people from wanting to live in London, or for that matter, anywhere in the UK,” he said.

He further added that the London Stock Exchange’s decline was a worrying sign. “Another indicator is the dwindling importance of the London Stock Exchange, which now no longer figures in the top 10 stock exchanges in the world in terms of market capitalisation,” he noted.

Financial hubs in Asia like Dubai and European cities like Frankfurt were quickly gaining popularity among the wealthy, thanks to better tax policies and growing investment opportunities.

Also Read: US Lawmakers Vow to Investigate Meta's China Links After Explosive Testimony

Asia and America: The New Millionaire Magnets

The same report highlighted that seven of the top 10 cities with the most millionaires were located in Asia and America. The San Francisco Bay Area led the race with a 98% surge in millionaires over the last decade. Singapore followed closely, recording a 62% rise in high-net-worth residents.

New York City continued to top the global list with 384,500 millionaires, while Los Angeles, Chicago, and The Bay Area secured spots in the top 10 from the United States. In Asia, Tokyo, Singapore, and Hong Kong featured among the top wealth hubs.

Cities like Dubai, Tokyo, and Los Angeles saw consistent surges in their millionaire population, luring wealthy individuals with their dynamic economies, favorable tax regimes, and booming tech sectors.

Not All Hope Lost for London Yet

Despite the ongoing exodus, London still retained a significant number of millionaires — 215,700 as of the end of 2024. While the trend raised concerns, experts believed that with policy reforms, improved tech opportunities, and economic recovery, the city could still regain its lost ground.

However, unless significant changes were made, London risked slipping further down the global wealth rankings — a move that could reshape its financial landscape for decades to come.