Number of property millionaires hit hard by downturn
5th Nov 2009
- UK's property millionaires down 35% since market peak in Nov 2007
- 57% of all UK homes worth over £1 million located in London
- North East hardest hit, losing 83% of property millionaires in past 2 years
The number of million pound properties in the UK has shrunk by 35% over the past two years, despite the recent upturn in property values, according to Zoopla.co.uk, the UK's leading house price resource. The sharp decline in house prices stemming from the credit crunch has hurt the ranks of property millionaires in the UK where, at the height of the market in late 2007, 1 in 97 properties was valued at over £1 million but today that figure stands at just 1 in 150.
Despite the decline in house prices, certain parts of the country remain awash with property millionaires, notably London and the South East, where four fifths (81%) of all million pound homes can be found. The capital is home to 57% of all property millionaires, with the largest share residing in Kensington (W8) where 48% of all properties are worth over £1 million. Outside the capital, Virginia Water in Surrey leads the property millionaire stakes, with 28% of homes in the area worth more than a million pounds, compared to a national average of just 0.88%.
Property millionaires in the North East have been hit the hardest over the past two years, with an 83% reduction in the number of those who can now claim to be property millionaires. Wales has also been hard hit, losing 56% of its property millionaires over the same period.
Alex Chesterman, CEO of Zoopla.co.uk, said: "The housing market downturn has taken its toll on the exclusive 'property millionaires club', reducing the number of those who can claim membership from 283,168 in November 2007 to only 183,630 today. London remains the property millionaire capital of Britain, whilst other parts of the country have seen their property millionaire ranks decimated over the past two years, with many of the former million pound pads sitting close to the threshold."
Decline in number of property millionaires
| Region | Nov 07 to Nov 09 |
|---|---|
| North East | -83% |
| Wales | -56% |
| Midlands | -50% |
| North West | -44% |
| South West | -43% |
| Scotland | -42% |
| South East | -39% |
| London | -29% |
Areas with highest proportion of property millionaires
| Area | Average property values (Nov 09) | Properties valued at over £1 million |
|---|---|---|
| Kensington (W8) | £1,460,013 | 48.1% |
| South Kensington (SW7) | £1,172,030 | 39.1% |
| Chelsea (SW3) | £1,182,522 | 37.0% |
| Barnes (SW13) | £848,429 | 29.5% |
| West Brompton (SW10) | £993,710 | 27.9% |
| Virginia Water, Surrey (GU25) | £910,121 | 27.5% |
| Notting Hill (W11) | £997,885 | 27.0% |
| Belgravia & Pimlico (SW1) | £834,667 | 21.8% |
| Westminster (W1) | £779.262 | 21.3% |
| St. John's Wood (NW8) | £776,850 | 20.7% |
- Ends -
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Notes to editors
About Zoopla.co.uk
Zoopla.co.uk is a unique property website offering users information and tools to help them make better-informed property decisions. Our aim is to provide the most comprehensive source of residential property market information in the UK to help buyers, sellers, owners and estate agents alike and give them an advantage in the property market.
In 2007, following the success of bringing DVD rental to the web with LOVEFiLM.com, Zoopla founders Alex Chesterman and Simon Kain realised that the UK property market had yet to fully enjoy the benefits of the internet in terms of its ability to deliver transparency and efficiency. They set out with the mission to transform the property market for both professionals and consumers by:
- offering users FREE access to instant value estimates, sold house prices and local information and trends
- enhancing estate agents' marketing efficiency by providing exposure/leads on a pay-for-performance basis
- helping users find local agents and other property professionals to assist them in the transaction process
- letting buyers make offers on ANY UK home and owners test interest in their homes before choosing to sell
- creating an environment where anyone can ask/answer questions and share their knowledge about homes
By providing FREE value estimates for EVERY UK home, sold prices and local information as well as hundreds of thousands of property listings for sale/to rent, Zoopla.co.uk is fast-becoming the ultimate destination for users to both search for property and to do their market research. We continue to be the UK's fastest growing property website and largest and most active property community, with over a million user contributions to our website in the past 12 months alone. We also offer unique features, like TemptMe. and AskMe., which allow consumers to gain an insight into the market and discover information they won't find anywhere else. Our estate agent directory, FindAnAgent and our unique AskAnAgent feature also help guide users to local professionals directly for their expertise.
We launched our website in January 2008 and since then we've been on a non-stop path to transform the UK online property sector. Our user numbers continue to grow impressively and we have consistently been the UK's fastest growing property website for the past 18 months, now attracting over 1.5 million visits per month to our website.
In July 2009 we acquired Thinkproperty.com from the Guardian Media Group and in August 2009 we added Propertyfinder.com, one of the UK's largest property portals, which we purchased from News International.
Our value estimates are calculated using a proprietary algorithm (secret formula) that we have developed by analysing millions of data points relating to property sales and home characteristics throughout the UK. The algorithm works by comparing relationships between home prices, economic trends and property characteristics in given geographic areas. Our estimates are constantly refined, using the most recent data available and a variety of statistical methodologies, in order to provide the most current information on any home.
Zoopla Limited is a privately held company with a highly experienced and proven management team, backed by well-respected angel investors and leading venture capital firms Atlas Venture (atlasventure.com) and Octopus Ventures (octopusventures.com).