Number of property millionaires hit hard by downturn
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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