Just 2,000 millionaires living in the affluent area of London, Mayfair, contribute a huge £2.5 billion to the UK economy, according to luxury estate agent Wetherell.
Wetherell analysed how much money the 2,000 millionaires in that area spend through “employing staff, luxury shopping, spending on consultants and other expenditure,” using information fromWestminster City Council, as well as property market researchers Dataloft and EGI.
The report found out that the wealthy Mayfair tenants spend a huge amount. For example, here are some top spending trends Wetherell unearthed:
- Households that are worth £15 million and over spend £100,000 on medical and cosmetic treatments.
- Those households also spend £2.7 million per year on interiors.
- Out of that total, £750,000 is spent on artwork and £4,500 on flowers.
- Around £150,000 is spent on security.
The report also found that two-thirds of Mayfair residents typically eat out 3-4 times per week .
“A key misapprehension is that Mayfair’s ultra-wealthy residents don’t contribute to the local economy. Our new Mayfair’s Golden Decade Report shows very clearly that in fact they do make a huge contribution and that the wider shopping, leisure and employment sectors benefit from a massive ‘trickle-down’ economic benefit,” said Peter Wetherell, CEO of Wetherell.
Wetherell said that the “entry level” flat in Mayfair now costs over £1 million whilst the average home costs £4.8 million. It added that rent costs an average of £1,387 per week in Mayfair.
“Some commentators also incorrectly believe that foreign property owners leads to a ‘lights out’ situation in the housing market. Again this is another misapprehension. In fact, 40% of Mayfair’s overseas residents are ‘resident Anglophiles’ who choose to make London their main home, recording that they have lived in London as their main home now for over 10 years.”