Rich women step up control of nation's purse strings

Rich women step up control of nation's purse strings

The traditional male dominance of the rich lists is under threat after a new study estimated there are now 360,000 women in Britain worth half a million pounds or more each.

Between them, they own assets worth almost £300bn and their numbers are expected to grow rapidly. It reflects the huge increase in the number of women working and holding senior managerial roles, said the report's authors. Over the past three decades the female employment rate has jumped from 42% to 70%, while almost a third of man agers are now women compared to only 2% in 1974.

However, it is also because women are living longer, inheriting valuable properties and other assets from their spouses and receiving bigger divorce settlements. These women boast a fortune of, on average, £798,000 each, said Brewin Dolphin Wealth Management, part of stockbroker Brewin Dolphin Securities, which based its research on Inland Revenue figures.

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Its study looked at "net wealth" - defined as total assets (including property, stocks and shares, cash, and any loans owing to the estate) minus total liabilities (mortgages and other debts). It excludes money tied up in pension schemes because this cannot be released immediately.

The company's analysis revealed that high net worth women have more than a third of their wealth in bricks and mortar. UK property accounts for £95bn of the £293bn total, with overseas property representing another £16.5bn.

They also have around £82bn invested in shares and other stock market-linked investments, and £61bn in cash.

"Increasingly, women are becoming financially more independent," said Martin Smith, chief executive of BDWM. "Many more women are now working, and a growing number are filling senior executive posts. As this trend continues, the number of financially very wealthy women will increase."

Among the latest additions to the ranks of very wealthy women is Eileen Gallagher, chief executive of television production company Shed, who received about £5.5m in March after she and the other co-founders sold just over half of the company. The new survey is the latest in a line of studies which suggest women are taking greater control of the nation's purse strings.

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