Britains' two-tier housing market
19th December 2011
- 26,774 more property millionaires now than at end of 2010
- But, the average British property value falls to £221,128, down 3% year-on-year
- High prime demand creates 73 new property millionaires every day in 2011
- 1 in 108 homes in Britain now worth £1m or more (1 in 97 at peak in ‘07)
Britain’s two-tier property market has never been clearer as the number of property millionaires grew over 2011 while average property values fell, according to property information website Zoopla.co.uk.
26,744 new British property millionaires were created in 2011, as demand for large homes from equity-rich buyers and relatively low supply pushed up the average value of top-end homes. There are now 253,118 homes valued at more than £1 million in Britain, equivalent to one in every 108 homes. At the peak of the market in 2007, one in 97 properties were valued at over £1 million.
Despite the rise in the number of British property millionaires, the average value of a British home fell between the end of 2010 and 2011. The average British home is now valued at £221,128, 3% lower than in December 2010 when the average value was £228,658. For properties valued at over £1 million, the average value is now £1,688,379 compared to £1,657,858 at the end of 2010, a rise of 2%, according to the research by Zoopla.co.uk which provides free, instant value estimates for every home in the country.
The biggest rise in the number of property millionaires was in London, where numbers grew 18% over the past year. Four in five homes worth over £1 million in Britain are located in London and the South East, with London accounting for over half the national total (55%). London is also home to nine of the top ten areas in Britain with the highest proportion of homes that are valued at over £1m, led by Kensington, W8 where more than half (56%) of all homes are worth more than £1m. The only area outside London making the top ten was Virginia Water in Surrey where 30% of homes are worth £1 million or more.
Nicholas Leeming, business development director of Zoopla.co.uk, commented: “This data shows clearly how differently the top end of the market is performing from mainstream Britain. Whilst most of the market is suffering from the impact of inflation, stagnant wage growth, the inability to secure mortgage finance and nervousness about the future of the economy, at the upper end of the market, cash and equity rich buyers are enjoying some of the lowest mortgage rates in recent history. And strong demand from overseas buyers has boosted prices for homes in the capital.”
Change in number of property millionaires in Britain
| Region | No. of Property Millionaires (Dec ’11) | No. of Property Millionaires (Dec ‘10) | % change over last 12 months |
|---|---|---|---|
| London | 145,768 | 123,236 | 18% |
| Scotland | 6,835 | 6,062 | 13% |
| Wales | 643 | 578 | 11% |
| Yorkshire & The Humber | 1,270 | 1,159 | 10% |
| East Midlands | 1,757 | 1,634 | 8% |
| South West England | 9,793 | 9,357 | 5% |
| North West England | 4,963 | 4,746 | 5% |
| East of England | 19,123 | 18,454 | 4% |
| South East England | 57,736 | 56,026 | 3% |
| West Midlands | 3,486 | 3,393 | 3% |
| North East England | 1,744 | 1,698 | 3% |
| TOTAL BRITAIN | 253,118 | 226,344 | 12% |
Source: Zoopla.co.uk
Highest proportion of property millionaires
| Area | Avg. property values (Dec ’11) | % £1m+ properties |
|---|---|---|
| Kensington (W8) | £1,844,656 | 56% |
| South Kensington (SW7) | £1,388,628 | 48% |
| Chelsea (SW3) | £1,449,287 | 43% |
| Barnes (SW13) | £967,836 | 36% |
| Notting Hill (W11) | £1,226,147 | 32% |
| West Brompton (SW10) | £1,112,913 | 31% |
| Westminster (W1) | £969,911 | 30% |
| Virginia Water, Surrey (GU25) | £1,019,968 | 30% |
| Hampstead & Belsize Park (NW3) | £999,153 | 28% |
| Belgravia & Pimlico (SW1) | £1,007,387 | 28% |
Source: Zoopla.co.uk
- Ends -
For further information, please contact PR Team on pr@zoopla.co.uk or +44 (0)20 3873 8770.
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