Number of British Property Millionaires Climbs by a Third in 2013

 

  • 92,985 new property millionaires created across Britain in 2013 (255 per day)
  • 61% of all Britain’s property millionaires can now be found in London
  • Kensington and Chelsea home to highest number or property millionaires
  • Wales is British region with the fewest number of property millionaires

Continued strong demand for prime residential property throughout 2013 has created 92,985 more property millionaires in Britain over the past 12 months, according to the latest research from property website Zoopla.co.uk.

The total number of British property millionaires now stands at 393,127, up 31% compared to this time last year, with a high concentration in London and the South East as a result of strong house price growth at the top-end of the property market. As 2013 draws to a close, 1.4% of British homeowners will finish the year as property millionaires.

61% (239,703) of all Britain’s property millionaires can now be found in London. Limited supply of prime property in the capital has pushed the value of a further 57,120 London homes over the £1 million mark in the last 12 months, creating 156 new property millionaires in the capital every day throughout 2013.

The exclusive borough of Kensington and Chelsea is home to the highest number of property millionaires totaling 41,393 (17% of the capital’s total), despite being the smallest London borough covering just 12km². Westminster (40,087), home of such famous Monopoly addresses as Mayfair and Park Lane, and Camden (23,873) round out the top three London boroughs with the most property millionaires.

Outside London, 21,028 more property millionaires were created in the South East during the past year, bringing the total to 82,614. The highest proportion of property millionaires outside the capital can be found in the affluent Surrey area of Virginia Water (GU25) where 32% of homes are now worth over £1 million. Beaconsfield (HP9) and Chalfont St Giles (HP8) come in second and third respectively for having the highest proportion of million pound homes. Wales is home to the fewest property millionaires in Britain, numbering just over 1,000 in total but still up 24% on 2012.

Lawrence Hall of Zoopla.co.uk said: “While Government schemes such as Help to Buy have concentrated popular attention on the lower rungs of the property ladder this year, there’s been a hive of activity propelling house price growth at the top-end of the market. As more and more British properties climb past the million pound level, the impact of a possible Mansion Tax would be wide reaching and risk impacting a significant number of British homeowners both at the top of the market and on the lower rungs of the property ladder.”

NUMBER OF PROPERTY MILLIONAIRES BY REGION

Rank

 

Region

No. of property millionaires

(Dec 2013)

No. of property millionaires

(Dec 2012)

Change over last 12 months

1

London

239,703

182,583

57,120

2

South East England

82,614

61,586

21,027

3

East of England

28,128

20,470

7,659

4

South West England

13,960

12,094

1,866

5

North West England

7,043

5,586

1,457

6

West Midlands

5,418

4,087

1,331

7

Scotland

8,161

7,264

896

8

East Midlands

2,667

2,003

664

9

North East England

2,574

2,082

492

10

Yorkshire & Humber

1,814

1,541

273

11

Wales

1,043

844

199

TOTAL

393,127

300,142

92,985

 Source: Zoopla.co.uk, December 2013

 

HIGHEST PROPORTION OF PROPERTY MILLIONAIRES

Rank

Area

Avg. property values (Dec 2013)

Proportion of £1m+ properties

1

South Kensington (SW7)

£2,092,053

71%

2

Kensington (W8)

£2,498,512

70%

3

Chelsea (SW3)

£1,982,268

56%

4

Westminster (W1)

£1,432,036

51%

5

West Brompton (SW10)

£1,540,704

46%

6

Belgravia & Pimlico (SW1)

£1,473,567

44%

7

Notting Hill (W11)

£1,597,498

42%

8

Earl’s Court (SW5)

£1,188,062

42%

9

Fulham (SW6)

£1,034,246

38%

10

Hampstead & Belsize Park (NW3)

£1,218,532

37%

Source: Zoopla.co.uk, December 2013

 

HIGHEST PROPORTION OF PROPERTY MILLIONAIRES (OUTSIDE LONDON)

Rank

Area

Avg. property values (Dec 2013)

Proportion of £1m+ properties

1

Virginia Water (GU25)

£1,081,595

32%

2

Beaconsfield (HP9)

£839,702

27%

3

Chalfont St. Giles (HP8)

£783,310

22%

4

Hartfield (TN7)

£697,535

20%

5

Gerrards Cross (SL9)

£719,765

19%

6

Radlett (WD7)

£693,525

19%

7

Guildford (GU5)

£733,978

19%

8

Henley-on-Thames (RG9)

£666,547

16%

9

Ascot (SL5)

£643,276

16%

10

Harpenden (AL5)

£649,553

15%

Source: Zoopla.co.uk, December 2013

 

Advertisements

Good neighbours are a highly valued commodity

• Anti-social/loud neighbours are the biggest drag on property desirability

• 57% of prospective homebuyers list bad neighbours as biggest put off

• Good neighbours more valuable than tidy garden or quality furnishings

• Londoners least concerned by bad neighbours when buying a property

Anti-social neighbours are the biggest turn-off to prospective homebuyers, according to a recent survey of over 4,000 homebuyers by PrimeLocation.com.

Almost 3 in 5 (57%) of those surveyed listed loud or anti-social neighbours as the most likely reason for being put off a home purchase. Homebuyers in the East and North East of England are most put off by the thought of bad neighbours with 61% of respondents claiming this as the leading detractor from a purchase. Londoner’s seem less fussed with just 52% of potential buyers in the capital stating that noisy neighbours would be a key off-putting factor.

Security ranked very highly as an important factor in a property being considered as ‘prime’ with private gates and security cameras coming in above swimming pools, tennis courts and walk-in wardrobes as must-haves amongst potential buyers of ‘prime’ property.

Lawrence Hall of Primelocation.com, said: “Discerning buyers don’t simply look for a good location but want to live in a good neighbourhood too. The quality of the neighbours and the security of the property are both clearly important factors for ‘prime’ buyers.”

Marsh & Parsons: Substantial Growth Across London as Non-Central Areas Surge Ahead

Image 

  • Prime London property prices rose by 12.8% from the previous year
  • Proportion of London buyers upsizing in central areas rises by 25% from the previous quarter

Property values in prime areas of London have increased by a substantial 12.8% in the past year, following a rise of 3.6% during the first quarter of 2013, according to estate agent Marsh & Parsons’ latest London Property Monitor.

But it is actually the areas of Non-Central Prime London that have experienced the most dramatic growth, as a relative lack of supply pushes buyers and investors further afield.

The average premium being paid for properties in Prime Central London now stands at just 43% more than the price being paid for the equivalent Prime London property – a 4% drop from the previous year.

But given the increasingly favourable mortgage rates available to those with higher loan-to-value ratios, growth in Prime Central areas is expected to catch up with that of its outer neighbours before long.

Prime London has now been outpacing Prime Central London for the past three quarters, by experiencing consistently higher quarterly growth than its most central parts alone.

There has also been a shift outwards for investors who are looking to profit from purchases in the rising areas of Non-Central Prime London, including Battersea – where rents have increased by an average of 6% in the past quarter.

The proportion of purchases by investors in Prime London has increased from 17% to 25% in the last quarter, while those purchasing in Prime Central areas has decreased steadily for the last three quarters to just 7% in Q1 2013.

Peter Rollings, CEO of Marsh & Parsons, comments:Homeowners have seen their equity soar as a result of such significant price growth in the past few years. We are now seeing many of those seizing the opportunity to sell at prices that have recovered and in many cases exceeded the highs of 2007, and then re-invest in the same market, taking advantage of the historically low mortgage rates available due to the funding for lending scheme.

“The relatively low increase in the value of Prime Central London property – compared to its Non-Central neighbours – means that there’s never been a better time to buy in Prime Central London. The enduring appeal of a classic home in a central location will never go out of fashion.”

Prime London Property Price Movements

Average value Quarterly Change Annual Change
Prime London £1,357,837

3.6%

12.8%

PCL £1,939,534

2.0%

9.3%

As a result of property price growth, the number of properties in the capital now worth £1m or more has increased dramatically. In March 2013, almost half (46%) of properties in Prime London were million-pound homes – a figure that has risen from 43% in December 2012, and 37% in March 2012.

Many homeowners in Prime Central London are now rushing to take advantage of these substantial value increases and cash in their capital gains to trade up into bigger properties. Home buyers upsizing in Prime Central London accounted for over a third (36%) of all moves in this area in Q1 2013 – a 25% increase from the previous year.

By comparison, the proportion of first-time buyers has not changed significantly in the past year. In Prime Central London the percentage has decreased by 4% in the past year, while in Prime London overall the proportion has grown by 4%.

The stark contrast with these figures against the proportion of those trading up suggests that many lenders are still channelling increased rates from the Funding for Lending schemes towards less risky borrowers with higher loan-to-value ratios.

Peter Rollings continues:While some argue that increased stamp duty on higher-value homes is affecting the value of properties over £2 million, it’s reassuring to see the number of million pound homes in the capital continue to flourish. We are continuing to see record levels of properties at this value and there is no sign of it stopping.”

Newspaper Headlines – Tuesday 4th December

Property

The Times reports that George Osborne is stuck in a game of cat and mouse with residents of Billionaire’s Row. It is believed that thousands of off shore companies, some of which are based in the Caymans, Panama and Dutch Antilles, are exploiting a loophole which allows them to buy some of Britain’s most expensive homes and avoid paying taxes on them. In London, 2837 overseas companies have bought mansions worth £2m or more in London boroughs of City of Westminster and Kensington & Chelsea, paving the way for its owners to avoid stamp duty, inheritance tax and capital gains tax. This means £5.6bn worth of prime property in the capital’s two priciest postcodes is potentially shielded from Revenue and Customs. Times, p1, 10-11

Economic

Ex chief of HBOS Sir James Crosby has reluctantly admitted that it was incompetence that brought down HBOS. Though he apologised for the appalling loan decisions, he rejected suggestions he should pay back any rewards including an annual pension of £572,000. It also emerged that the former chief executive sold two thirds of his shares in the bank, two years before its near collapse. Accused of getting out before the crash, Sir James claimed he was unknowingly balancing his portfolio of assets. This staggering admission is likely to see him bracketed as a villain alongside RBS’ Fred Goodwin. Independent, p1; Times, p45; Telegraph, B1

 

Personal Finance

The government’s flagship Funding for Lending Scheme has got off to an underwhelming start. The Bank of England revealed that only six out of 35 lenders who signed up to the scheme have accessed any cheap funding. The £4.36bn of total funding accessed so far by lenders represents about 7% of the total available to them. While signs show some easing of the availability of mortgages, small firms say they are not benefitting from this scheme. The Federation of Small Businesses is reported to have said the scheme has been helping the mortgage market more than businesses and homeowners. Independent, p51; Guardian, p31

Recruitment

Starbucks is to slash range of workers’ benefits including cutting paid lunch breaks, sick leave and maternity benefits for 7000 British workers. New contractual terms are being circulated with numerous minor benefits being removed in a bid for the company to bear the cost of its potentially increased tax bill. Guardian, p11