LONDON, July 23, 2014 /PRNewswire/ --
• There are now a record 400,000 property millionaires in the UK
• Over 60% of million pound plus properties in Britain are found in London
• Average house price in the capital is now over £400,000 - the highest it has ever been
Thanks to surging house prices in London and the South East, the number of homes worth £1million or more has jumped by a third in the space of a year, meaning that one in ten UK adults now live in a household worth at least £1million. There are a record 400,000 property millionaires in Britain today - which is double the amount there was five years ago - and around 240,000 of these properties are nestled in the capital.
A new breed of instant London millionaires
With house prices in London rising at more than twice the speed of other regions, it's no surprise that almost 60,000 of the 100,000 or so newcomers to the property millionaire club are found in the city. According to the Nationwide Building Society, London house prices have risen by more than 25% - around £63,000: more than twice the average person's income last year - over the past year alone; a rate of growth that hasn't been seen since the peak of the late 1980s boom. The average house price in the capital has broken through the £400,000 barrier for the first time - double the UK average, and 30% higher than the peak reached in 2007 prior to the banking crisis.
Buying in the right place at the right time
The highest concentration of property millionaires is found in London's Royal (and smallest) Borough of Kensington and Chelsea, where around 41,400 are members of the elite club. The average home in Kensington and Chelsea is now £1.2million compared to £470,000 a decade ago, according to the Land Registry. But some of the biggest increases were seen across the other side of town in East London where property millionaires in Hackney have more than doubled to 1,800, and the boroughs of Haringey and Tower Hamlets have both seen property prices rise by 32% in the past year. But the South London borough of Lambeth, which includes Vauxhall, Brixton and parts of Clapham, takes the prize for the steepest rise of 37%.
A playground and safe haven for the international super-rich
London is now home to more multi-millionaires than anywhere in the world. First-class restaurants, limitless shopping, renowned private education as well as a convenient time zone are just a few of the factors that form part of the city's glamorous appeal, but below the glitzy surface, London's status as a financial hub with a reputation for extreme discretion and generous tax regimes for those claiming non-domiciled status is equally if not more so attractive to foreign buyers. Demand at the top end of the property market remains intense and the trickle-down effect of the ultra-rich's buying power has greatly contributed to driving property prices in the capital to new heights.
Government's Help to Buy scheme for those with smaller deposits
While the news is all well and good for homeowners who have seen the value of their properties increase by more than their salaries, young workers in the capital fear that they may never be able to get onto the London property ladder. Affordable housing has never been more urgent for Londoners, but fortunately Government schemes like Help to Buy allow those with a fraction of the deposit they would normally require to take out a mortgage. Yet, some experts believe that this very scheme is also partly to blame for the skyrocketing in property prices as it inflates demand by subsidising home buying.
Stefan Baran, CEO of home removals company, Barans Removals states the Help to Buy scheme "provides a great opportunity for Londoners to buy their first home during an exciting time in the property market."
Whether or not you are set to become the next member of the London property millionaire club, Barans Removals is here for when you move into your Kensington palace, or a more humble Hackney house-share. For a free estimate call them today on 0800-195-8393 or submit an online form at http://www.baransremovals.com.
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SOURCE Barans Removals