160 families a day became property millionaires last year as house prices in the UK continued to soar

Landlord Expert
By Landlord Expert January 28, 2015 22:42

400,000 Britons are now homillionaires (that's owners of homes worth £1million or more): 160 families a day pass barrier as property prices continue to soar

  • Around 10,000 streets in UK have average property price of £1m or more
  • Now more than 400,000 homes in Britain are worth more than £1million 
  • Boom fuelling a rise in 'homillionaires' who a rich in property not cash 
  • The figure from the Land Registry show 275,000 of them live in London

One hundred and sixty families a day became property millionaires last year as house prices in the UK continued to soar.

There are now 400,000 ‘homillionaires’ – owners of homes worth £1million or more – with houses worth a combined £836billion.

And experts believe the rate of households becoming homillionaires will reach almost 200 a day this year. But many of these families remain cash-poor as their wealth is tied up in property.

Last year three times as many homes sold for seven-figure sums compared with ten years ago, according to research by estate agents Savills and the Sunday Times.

There are more than 10,600 streets with an average house price of at least £1million. On 12 London streets it is impossible to buy even a garage for less than that amount.

The most expensive, Kensington Palace Gardens, has an average house price of £42.7million. London has more homes over the £1million mark than the rest of the UK combined, but there are clusters of homillionaires in areas such as Cornwall, Cheshire, Edinburgh and Suffolk.

Analysis of Land Registry and local authority data by the newspaper found seven-figure house sales had risen up to eight-fold in some areas since the 2007 market peak.

In Cambridge, property sales worth at least £1million were up 200 per cent since before the recession. Hackney and Lewisham, formerly unfashionable London boroughs, saw the figure rise by 814 per cent and 275 per cent respectively.

There are an estimated 275,000 homes worth £1million or more in London and 72,100 in the South East. Seven-figure sales in the East and the South West have jumped 35 per cent and 17 per cent respectively since 2006/07 – attributed to Londoners cashing in on their £1million-plus homes to buy mortgage-free in the countryside.

Experts believe most homillionaires have a seven-figure property by accident, buying reasonably-priced houses one or two decades ago and seeing the value soar in the market boom. There are fears these homeowners would be unfairly targeted by Labour leader Ed Miliband’s proposed mansion tax – £250 a month for those with homes worth more than £2million.

Labour peer Professor Robert Winston said the policy is like something from ‘Soviet Russia’ and unfair as it would not affect similar homes outside London. A Labour spokesman said it ‘would apply to fewer than 0.5 per cent of the UK’s homes’.

 

Landlord Expert
By Landlord Expert January 28, 2015 22:42

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