In recent months it has been all the news that house prices have been falling steadily around the UK in most locations. However, there are still certain regions where properties are rapidly increasing in value and as a result there are now almost 27,000 property millionaires, 26,744 to be exact.
According to Zoopla which does online valuations, there are areas of the UK where properties have increased so significantly in value that they are now worth more than £1 million. Even though average prices have fallen by 3% within the past year, the average home is still valued at £221,128. The reason why so many homes have risen in value is said to be the result of location and size.
Of course properties in London are still on the rise, but so too are properties in the South East of England. Also, the demand for larger homes is quite high and there is a relatively short supply of them. Because of this and because they are located in either London or in the South East, property values on larger homes have skyrocketed. Current homeowners of these larger, more desirable homes, can now be considered property millionaires.
In London alone, it is said that property millionaires increased by 18% and that four out of every five homes valued at £1 million or more are located in either London or the South East. Together, these two areas hold greater than half or 55% of the homes in the UK which are valued over £1 million. To set London even farther apart from the rest of the country, it has 90% of the top areas in the UK.
A spokesman from Zoopla stated that this data indicates that there is a huge line of demarcation between the upper end of the housing market and the average mainstream Brit. He further states that the housing market is indeed suffering from inflation and a stagnant economy, but the upper end is faring well. Added to all this, these property millionaires also are reaping the benefits of low mortgage rates.