In August 2014, online property site Zoopla announced that there are now more than 484,000 property millionaires in the UK. This has been a dramatic rise from 2009, where approximately 200,000 people owned properties worth more than £1 million.
As can be expected, the majority of those owning property worth more than £1 million can be found in London. The capital is home to the UK’s top 20 priciest addresses, and it is continuing to attract the attention of overseas investors.
As anybody who has any geographic awareness of London may have already figured out, it’s possible to find many of the city’s priciest addresses in Kensington and Chelsea. Kensington Palace Gardens continues to be one of the country’s richest streets, which attracts a litany of billionaires and socialites.
For those who would like the chance to become a property millionaire, but can’t afford London’s prices, the rest of the UK has plenty of real estate opportunities. Areas like Wales and North East England boast mansion-sized properties and stately homes that come in at just over £1 million. Although London is home to the city’s priciest streets, it certainly doesn’t hold a majority monopoly. Of the 10,000 streets where properties worth more than £1 million are present, around 3,744 can be found in London, which means the rest of the UK has plenty to offer budding property millionaires.
While news surrounding the UK’s property millionaires is certainly exciting for those who can afford such properties, a bleaker picture has been painted for those still trying to find their way onto the property ladder. Housing prices are continuing to boom across the country, and with July seeing a reduction in the number of mortgages granted, it appears property ownership isn’t getting much easier for those earning low wages.
In an attempt to keep up with the property market, inheritance tax may also be changing. A 40% tax is now placed on properties worth more than 325,000. With the average cost of properties rising in general, this means the number of people contributing to the treasury when a loved one leaves a property to them in their will is also set to increase.
For those who are able to relocate, there are still some areas where it’s easy to find a property on a low income. The north-south divide continues to grow, with properties in the South East, London, and South West becoming increasingly more unaffordable for those earning average wages. In contrast, areas like Liverpool, Newcastle Sunderland, South Wales, and some parts of Scotland are home to properties that cost less than £100,000. However, as these areas still suffer from high unemployment rates in certain sectors, the UK shouldn’t experience a mass exodus of property bargain hunters just yet.