TheMoveChannel.com: London property millionaires surge by 8pc
Tue 06 Nov 2012
The number of property millionaires has surged by 8 per cent, according to one estate agent. The proportion of real estate worth 1 million and over in the capital's prime market has risen to 43 per cent, Marsh & Parsons' report revealed, up from 34.6 per cent one year ago.
Just over one third of properties across the prime areas of London were worth 1m or more in September 2011 (34.6%), a figure that had risen to two in five (43%) following average annual price growth of 11.1% in the last quarter.
Properties worth more than 1m are no longer confined to locations in prime central London. In September 2010, 57.1% of 1m properties were located in the traditional prime central locations such as Chelsea and Kensington, a figure that has fallen to 52.7% as areas to the south and west of more traditional prime central hotspots see a s strong price growth.
However the strong price growth in the past two years has also boosted the number of homes worth 2m in prime London. 18.5% of all homes in prime London are worth 2m or more, compared to 14.3% a year ago, while 35.5% of homes in prime central London are now worth 2m or more.
Peter Rollings, CEO of Marsh & Parsons, comments: "After the meteoric price rises seen in prime London in the past few years, the number of property millionaires in the capital has also shot up. Properties no longer have to be palatial to be worth 1m. If they are located in a popular prime area, there's a good chance they'll be worth a seven figure sum. They do not necessarily have to be "mansions".
"International and domestic buyers have been flocking to prime property in recent years, but this influx of wealth is no longer concenrated in the most central locations. With the supply of homes especially constrained in the central prime areas, wealth has been overflowing into areas like Balham, Clapham and Brook Green, pushing up prices and boosting the number of 1m properties across the capital."