How has inflation affected the High Net Worth Market?
The Chambers High Net Worth research team explores how inflation has affected the ultra-wealthy, the property market and the superyacht market.
10% fall for the ultra-wealthy
This year’s Wealth Report from property agency Knight Frank reported that worldwide Ultra High Net Worth Individuals’ wealth fell by 10% on average last year. The report blames rising interest rates, surging inflation and weak equities markets.
In London, our interviewees told us that the super-prime residential property market has, at least so far, been insulated from the mortgage rate rises that have made life uncomfortable for British homeowners who aren’t lucky enough to be among the internationally ultra-wealthy.
Several of our sources said they’d seen particular interest from US and Asian buyers looking to take advantage of weak Sterling prices. One London lawyer said that he’d seen a lot of American buyers looking to acquire country estates, or, as they put it, “acquire a piece of ye olde England.”
Superyachts and private planes heavily affected
Chambers High Net Worth also covers legal work relating to “passion investments” like superyachts and private planes. These industries have been heavily affected by the sanctions on Russia following its invasion of Ukraine in 2022. Superyacht specialists spent the year advising boatyards on compliance with these sanctions, and on selling the part-built hulls of superyachts commissioned by Russian clients prior to the invasion to American and Middle Eastern buyers, at a steep discount.
