Household Bills
London life gets cheaper for the super-rich
The cost of living an ultra-wealthy lifestyle in the capital fell 1.1 per cent this year, according to new research, following a 4.9 per cent decrease the previous year.
According to Stonehage Group the two figures combined represent a “significant” fall in price inflation.
Stonehage’s research follows a report by the Joseph Rowntree Foundation which found that the cost of maintaining a minimum standard of living in the UK has increased by 28 per cent for the average family since 2008.
The decrease in super-luxury prices was driven predominantly by a fall in the cost of luxury consumables, including cigars, wine and fine dining. The prices of these products have fallen an average of 9.7 per cent this year. Some prices took more significant tumbles, including the price of caviar, which fell 37 per cent due to increasingly intensive farming methods.
Prices in the culture and entertainment category were down 4.7 per cent as a fall in the value of fine art was partially offset by a 3.4 per cent increase in the cost of theatre tickets and higher membership fees for creative arts and media membership clubs.
Investments of passion, including British-made luxury cars, saw a slight decline of 0.2 per cent. The fall would have been more substantial, according to Stonehage, if not for high demand for British labels like Burberry in China and the Middle East.
Just two categories saw price increases: sports and recreation and housing and family, both of which rose by 0.4 per cent.
Executive seats at major tennis events and membership fees at London’s top tennis clubs both saw price hikes, perhaps on the back of Andy Murray’s 2013 Wimbledon win.
Rent in Kensington and Chelsea fell by 0.6 per cent, but this was offset by a 3.6 per cent increase in the cost of private education in London over the last year. Housekeeping fees, utility costs and dental check-ups also rose.
Ronnie Armist, chairman of Stonehage Investment Partners, said: “While the cost of living for the super-rich in London has fallen in the last year, this has been driven by sterling currency strength and conditions in certain very specific components of the index, and we expect prices to rebound as global economic conditions improve over the coming year.”
