United Kingdom Property News

£1m-plus homes see price hikes when average values plummet

£1m-plus homes see price hikes when average values plummet
There are nearly 27,000 more property millionaires in Britain compared to this time last year, at a time when average property values plummet, leaving many people across the country in negative equity.

According to property information website Zoopla, there are now more than 253,118 homes valued at more than £1 million in Britain. Zoopla said "high prime demand created 73 new property millionaires every day in 2011".

For properties valued at over £1 million, the average value is now £1,688,379 compared to £1,657,858 at the end of 2010, a rise of 2%.

This is in stark contrast to the average British property where the value has fallen to £221,128, down 3% year-on-year.

Zoopla said demand for large homes from equity-rich buyers and relatively low supply had pushed up the average value of top-end homes.

The biggest rise in the number of property millionaires was in London, where numbers grew 18% over the past year.

Zoopla says the "two-tier property market" has never been clearer.

Nick Leeming of Zoopla.co.uk said: “This data shows clearly how differently the top end of the market is performing from mainstream Britain. Whilst most of the market is suffering from the impact of inflation, stagnant wage growth, the inability to secure mortgage finance and nervousness about the future of the economy, at the upper end of the market, cash and equity rich buyers are enjoying some of the lowest mortgage rates in recent history. And strong demand from overseas buyers has boosted prices for homes in the capital.”