The UK is expected to see a net outflow of 3,200 high net worth individuals (HNWIs) in 2023 — higher than the projected 3,000 net loss for Russia, according to the Henley Private Wealth Migration Report 2023.
The report, which tracks wealth and investment migration trends worldwide, said this will make the UK the third-biggest loser of millionaires globally after China (net loss of 13,500) and India (net loss of 6,500).
Perhaps most notably, the UK’s anticipated HNWI flight is double that of last year, when it saw a net exodus of 1,600 millionaires.
The UK’s peak net outflow year was 2017, following the Brexit referendum in 2016. Prior to this, the country enjoyed net positive inflows of HNWIs. While net losses dropped slightly between 2017 and 2019, the 2023 forecast indicates a far more significant millionaire exit is currently underway.
Sunita Singh-Dalal, partner for private wealth and family offices at Hourani, said in the report that “the recent unsettling British ‘Non-Dom debate’ triggered by unprecedented political volatility, coupled with rising debt, a dysfunctional healthcare system, high crime rates, and a general sense of lingering malaise, has clearly tarnished the lustre of London”.
Australia in demand
The Henley and Partners report also found Australia is expected to attract the highest net inflow of HNWIs in 2023 at 5,200, and although the UAE drops into second place following its record-breaking influx in 2022, it is still expected to enjoy an impressive net arrival of 4,500 new millionaires this year.
Singapore ranks third with a net inflow of 3,200 HNWIs, its highest on record, followed the US with an expected net influx of 2,100 millionaires.
Switzerland (net inflow of 1,800) and Canada (1,600) are in fifth and sixth place, respectively, with Greece (1,200), France (1,000 — double last year’s net intake of 500 millionaires), Portugal (800), and New Zealand (700) all making it onto this year’s top 10 list for net HNWI inflows.
Israel is predicted to tumble out of the top 10 with its net inflow of millionaires set to almost halve this year to just 600 compared to 1,100 in 2022.
Dr Juerg Steffen, chief executive of residence and citizenship by investment consultancy firm Henley & Partners, said there’s been a steady growth in millionaire migration over the past decade, with global figures for 2023 and 2024 expected to be 122,000 and 128,000, respectively.
He added: “In general, wealth migration trends look set to revert to pre-pandemic patterns this year, with Australia reclaiming the top spot for net inflows as it did for five years prior to the covid outbreak, and China seeing the biggest net outflows as it has each year for the past decade. The notable exceptions are former top wealth magnets, the UK and the US.”