Billionaire Brits feel pinch from property

The number of British billionaires in US dollar terms has risen from 24 to 29 this year, according to Forbes magazine. Their average wealth rose from $2.2 billion (£1 billion) to $2.7 billion, but this is below the world average for billionaires of $3.6 billion - and that gap is bigger than it was last year, and widening.

It comes despite the strength of sterling against the dollar, which has increased wealth in dollar terms for those who count their cash in pounds.

And with many of Britain's billionaires making their money from property, they are likely to fall further behind as the market slows. The property boom of recent years has propelled growing numbers of Brits into the billionaire club.

Landlords and investors such as the Duke of Westminster, the Reuben brothers and Simon Halabi have seen the value of their portfolios soar.

But higher interest rates and turmoil in the credit markets has slammed the brakes on the property market - dramatically curtailing future earnings.

Alongside those who have made their money through property, the Forbes top 10 British billionaires includes retailer Sir Philip Green, Virgin entrepreneur Sir Richard Branson and Formula One boss Bernie Ecclestone.

Britain is also home to ever more billionaires from overseas, the number rising from 33 to 42 and their wealth jumping 42% to $164.2 billion.

This group does not include British expats such as Sir Philip, but does include foreigners who have set up home here to take advantage of tax breaks and the London lifestyle.

Of the six richest people living in Britain, such as Indian Lakshmi Mittal and Russian Roman Abramovich, only the Duke of Westminster is a UK citizen. The Duke, or Gerald Cavendish Grosvenor, regained the top spot on the Forbes list from Sir Philip, who owns Bhs and Arcadia, home to fashion chain Topshop.

The Grosvenor family owns vast areas of Mayfair and Belgravia as well as estates in Cheshire, Lancashire, Scotland and Canada.

The Duke's privately owned property firm Grosvenor Group, where he stepped down as chairman this year, also has business interests stretching from Hong Kong to the US, and he is ranked 55th in the Forbes list of the world's richest people.

With the list compiled before the credit crunch struck, the strength of the property market has boosted the fortunes of David and Simon Reuben, the Mumbai-born, UK-raised brothers, and Simon Halabi, the highest newcomer to the list.

Forbes points out that Britain has no technology billionaires equivalent to Microsoft's Bill Gates or Google's Sergey Brin and Larry Page. There is room for JK Rowling, thanks to her Harry Potter fortune.

THE RICH PARADE

1. Duke of Westminster, property, £5.6bn
2. Sir Philip Green, retail, £3.6bn
3. David and Simon Reuben, property, £2.3bn
4. Simon Halabi, property, £2.2bn
5. Sir Richard Branson, entrepreneur, £1.9bn
6. Earl Cadogan, property, £1.8bn
7. Bernie Ecclestone, motor racing, £1.8bn
8. Nadhmi Auchi, finance and property, £1.6bn
9. David and Frederick Barclay, media and property, £1.5bn
10. Clive Calder, music, £1.5bn