Prime London property is becoming a favourite with foreign buyers, who view the purchase as a safe investment in the current volatility. The latest data from property website Zoopla.co.uk shows that they are right indeed.
Knight Frank has just released its global house price index for the 3rd quarter, and it shows that house prices are now falling in more than half of the 51 countries covered. Ireland is still the worst performer with prices down 14.3% in the year ending the third quarter, and down 3.8% in the third quarter alone. Spain is not far behind with 5.5% year on year, and UK house prices are down about 3% in the last year as well.
Yet, according to the latest data from Zoopla.co.uk the number of houses valued at over £1m grew in the past 12 months, according to new figures from property website Zoopla.co.uk. The report shows that in the last year 26,744 more homeowners had properties worth a million quid or more, taking the UK total to 253,118 in December. This amounts to 1 in every 108 homes, which is down slightly compared to the 1 in 97 homes registered in 2007.
As you'd expect, London and the south dominate the sector, with London being the supreme king. According to the report 80% of the 26,774 homes that crossed the £1m threshold this year were in London and the south east, while 55% of them were in London alone. The area with the highest proportion of £1m homes was Kensington W8, where more than half of the properties are worth more than this. The report also shows that the number of £1m plus homes in London has grown by 18% this year.
There is more than enough doom and gloom going around at the moment, in fact there is enough to put people off buying property - ever. It is nice when we see a positive story, and there are few things in the property world more positive than someone being made a millionaire through owning the stuff. The Zoopla report also means that owning UK property made 27,000 more millionaires in the UK, although owning homes at that level many of them were probably already millionaires anyway.
- Thursday 22 December 2011