WHO WANTS TO BE A THRILLIONAIRE? WE ALL DO!

So does the term ‘millionaire’ mean anything any more?
Today’s millionaires actually need nearly £3million to afford the ‘dream’ millionaire’s lifestyle.

· Over 50% of people believe they may become a millionaire in their lifetime
· An average of £2.6 million is needed to comfortably live the ‘millionaire’s lifestyle’

A million pounds is no longer enough to lead the ‘dream millionaire’s lifestyle’ according to a new study from Coutts & Co, one of the UK’s leading private banks. According to the findings, the actual value of £1million has fallen so dramatically over the last 25 years that it no longer affords the luxurious standard of living it once did. The term ‘millionaire’ - for those in possession of cash or assets totalling £1million - is now less meaningful than it once was. In fact, according to the study, the average ‘millionaire’ family* would now need assets and wealth totalling at least £2.6million in order to afford the ‘dream millionaire lifestyle’** in the UK.

Despite this, the study, undertaken on behalf of Coutts by research organisation BDRC, reveals that two thirds (65%) of the population would still give up their jobs immediately if they won £1million. But they might be in for a surprise, as £1million is no longer enough to fund the ‘dream millionaire’s lifestyle’ - with all the usual trappings of luxury, such as a 5 bedroom house, personal household staff, luxury cars, an apartment and yacht abroad and luxury holidays each year.

Sarah Deaves, Coutts CEO commented: “A millionaire used to be someone who was seen as super-wealthy – a person who didn’t have to work if they chose not to, and who was able to live a life of luxury simply by having £1million in cash or assets. One million pounds is obviously still a sizeable amount of money, which, if invested correctly, can afford a high standard of living and provide financial security in later life. However, while 25 years ago £1million would have been more than enough to comfortably live the ‘millionaire’s lifestyle’ a few times over, today it will only afford a small portion of the trappings. In this sense our research says it is time to coin a new expression: the ‘thrillionaire’ – as people now really need an average of nearly £3million to be able to live that luxury lifestyle.

“The fact that so many respondents felt that they may one day become millionaires is indicative of the entrepreneurial spirit of the UK and people’s desire to create their own wealth. Indeed, we have recently seen a significant shift in the profile of Coutts clients, where there are more self-made millionaires seeking our advice than ever before – entrepreneurs now represent the fastest growing area of our business.”

Living the Lifestyle
In 1980, interest rates were around 16% and property was worth eight times less than today. In London today, the most expensive region in the UK, to give up work and live the ‘millionaire’s lifestyle’, total assets and wealth of £3.48million would be needed. In 1980 the equivalent would have cost just £451,000 – more than seven times less.

House prices
Property prices are one of the main reasons why £1million no longer stretches as far as it used to, with prices having jumped by 575%*** over the last 25 years.  This however doesn’t stop us from thinking about where we would buy our dream property if we became millionaires – with 15% of Britons saying that Cornwall would be their chosen location, closely followed by London (14%). 

Other study findings include:

· The number of millionaires in the UK has increased by more than 80% between 2001 (230,000) and 2004 (425,000). It now totals 425,000, largely due to a 64% jump in house prices during this period.
· A fifth of people (21.4%) feel they would need over £1million in the bank to feel ‘wealthy’.
· If they won £1million, 80% of people would give money to friends and family, but only half (56%) would give to charity.
· A quarter would remain in their current job if they became millionaires overnight (29% men / 25% women)

- Ends -

For further media information on Coutts contact:
Claire Symonds, Regional PR Manager, Coutts & Co on 0207 957 2650 or mobile 07970 001149 or e-mail claire.symonds@coutts.com 

NOTES TO EDITORS

*Average millionaire family – millionaire/ss aged 40-50, married with two teenage children, with a 50% mortgage on their main home

** Average millionaire lifestyle – consists of a luxury 5 bedroom house with 2 staff, 2 luxury cars, an apartment and yacht in the South of France, dine out twice a week and take two luxury holidays abroad each year

*** The average property cost £25,581 25 years ago, it now costs £172,788, a massive increase of 575%

· Research was conducted by BDRC, one of the UK’s largest independent research organisations and www.tickbox.net
· Coutts & Co is authorised and regulated by the Financial Services Authority. Coutts & Co is registered in England No 36695 Registered Office 440 Strand London WC2R 0QS
· Calls may be recorded

KEY STATISTICS

	Assets and wealth required to retire as a millionaire (£)	Assets/income required to maintain a millionaire lifestyle whilst working (£)
London	3,471,000	1,320,000 / 298,000
South East	2,804,000	928,000 / 280,000
South West	2,577,000	825,000 / 246,000
East	2,520,000	837,000 / 241,000
West Midlands	2,356,000	775,000 / 230,000
North West	2,262,000	758,000 / 223,000
East Midlands	2,282,000	738,000 / 228,000
Yorkshire and the Humber	2,232,000	743,000 / 221,000
Wales	2,186,000	720,000 / 218,000
North East	2,716,000	715,000 / 218,000
UK average	2,540,600	835,900 / 240,300

WHAT DID BEING A MILLIONAIRE COST IN….

	2000 (£)	1990 (£)	1980 (£)
London	2,154,700	1,108,700	450,987
South East	1,947,000	907,050	382,600
South West	1,759,500	808,516	352,950
East	1,737,870	827,650	350,900
West Midlands	1,614,970	760,510	317,300
North West	1,566,700	752,050	309,000
East Midlands	1,560,470	733,110	315,600
Yorkshire and the Humber	1,530,300	732,350	309,300
Wales	1,527,500	729,750	304,600
North East	1,509,450	709,850	303,900
UK average	1,690,846	806,954	339,714

HOUSE PRICES FOR A TYPICAL FIVE BED PROPERTY

	2005	2000	1990	1980
London	1,740,000	879,295	591,559	209,718
South East	956,000	578,978	361,832	128,174
South West	750,000	408,097	268,301	98,869
East	774,000	446,223	306,422	107,867
West Midlands	650,000	357,797	248,973	74,273
North West	616,000	325,193	245,537	72,704
East Midlands	576,000	303,261	221,589	72,609
Yorkshire and the Humber	586,000	288,821	225,819	72,991
Wales	540,000	285,934	223,165	68,309
North East	530,000	267,955	203,280	67,570
UK average	771,800	414,155	289,648	97,308

INTERESTING FACTS:
· In 2001, taking away housing assets, 33% of wealth was owned by the most wealthy 1% of the population (Source: Inland revenue)
· The National Lottery has created approximately 1,800 millionaires in its first 10 and a half years (Source: Camelot)
· It hasn’t always been like this – in 1907 £1million was worth roughly the same as in 1797! (Source: Office of National Statistics)
· As the number of millionaires in the country rises rapidly – over the last five years, it has increased more than 80% from 230,000 to 425,000 – the real worth of £1million continues to fall.  In the last 15 years alone, the overall value of £1million has decreased by a third. At the beginning of the 1980s, £1million was worth £2.83million in today’s money - nearly three times as much as it is now.

LONDON
· Property prices in London have roughly trebled since 1990
· 17% of residential properties in central London are second homes
· Around 3 in 4 of the most expensive streets to live in are located in London
· Among the most expensive streets, according to Land Registry data, is Earls Terrace in Kensington and Chelsea, where the average selling price is £4.27million
· Even the 150th most expensive London street has an average selling price of around £1.3million
· London accounts for 60% of £1m plus house sales
· There are 10,955 medium-sized businesses (employing between 20 and 499 staff) in London, with a collective turnover of £168,631,000,000 (average turnover of £15.4 million)*

SOUTH EAST
· Whilst 3 in 4 of the 200 most expensive streets to live in are located in London, all but a handful of the remainder are to be found in the South East
· Hot spots include the prime commuter belt territories of Weybridge, Virginia Water, Leatherhead, Kingston upon Thames and Barnet
· Virginia Water is ranked as the single most expensive town in the UK, with an average sale price of £591,000 (for all properties)
· Indeed, 23 of the 100 most expensive towns in the UK are located in Surrey
· In the South East, income is less evenly distributed than in any other region in the UK (outside London), with the top fifth earning 30% of the total
· There are 12,090 medium-sized businesses (employing between 20 and 499 staff) in the South East, with a collective turnover of £105,783,000,000 (average turnover of £8.7 million)

SOUTH WEST
· Winchester contains the only street in the South West to figure in the most expensive 200 streets in the UK
· There are 6,930 medium-sized businesses (employing between 20 and 499 staff) in the South West, with a collective turnover of £36,549,000,000 (average turnover of £5.3 million)

EAST
· 8 Towns in the East figure in the top 100 most expensive towns in the UK. All of these are in Hertfordshire
· There are 7,995 medium-sized businesses (employing between 20 and 499 staff) in the East region, with a collective turnover of £58,229,000,000 (average turnover of £7.3 million)

WEST MIDLANDS
· There are 7,830 medium-sized businesses in the West Midlands , with a collective turnover of £49,263,000,000 (average turnover of £6.3 million)

NORTH WEST
· Alderley Edge in Cheshire is the only town in the region to make the most expensive 100 towns list, with average selling prices of £301,000
· The most expensive streets in the region are all in the Hale district of Manchester:
· There are 9,235 medium-sized businesses (employing between 20 and 499 staff) in the North West , with a collective turnover of £61,984,000,000 (average turnover of £6.7 million)

EAST MIDLANDS
· There are 6,405 medium-sized businesses (employing between 20 and 499 staff) in the East Midlands , with a collective turnover of £41,175,000,000 (average turnover of £6.4 million)

YORKSHIRE AND THE HUMBER
· Wetherby in North Yorkshire is the only town which appears in the 100 most expensive towns list, with an average selling price of £266,000
· Harrogate, and the nearby village of Pannal contain the most expensive streets in the region:
· In the Leeds area, the most expensive property can be found in South Milford and Weeting
· There are 7,020 medium-sized businesses (employing between 20 and 499 staff) in the North East, with a collective turnover of £46,286,000,000 (average turnover of £6.6 million)

WALES
· The three most expensive streets in Wales are in the capital, Cardiff:
· There are 3,485 medium-sized businesses (employing between 20 and 499 staff) in the North East, with a collective turnover of £18,188,000,000 (average turnover of £5.2 million)

NORTH EAST
· The most expensive areas to live in the region are Woolsington, Rickleton and Prudhoe, all with average prices of over £250,000
· There are 2,795 medium-sized businesses (employing between 20 and 499 staff) in the North East, with a collective turnover of £18,445,000,000 (average turnover of £6.6 million)

· Source DTI