London sees rise in property millionaires

With house prices in some of the capital's property hotspots continuing to rise as values across the rest of the country stagnate, it is hardly surprising that property to rent in London is in high demand.

Figures from the online portal Zoopla.co.uk show that in the last 12 months there has been a substantial rise in the number of homes falling into the million pound bracket.

This is putting home ownership even further out of reach for many of those living and working in London and prompting more people to turn to the rental market instead.

The data shows that in December 2012 the capital was now home to 182,583 property millionaires, which was an increase of 36,815 compared to the same month in 2011.

Kensington reigns supreme when it comes to expensive property, with 64 per cent of homes in the area costing £1 million or more, with the average value coming in at £2.2 million.

It is closely followed by South Kensington, where 63 per cent of properties come with a million pound price tag. Third place is Chelsea, followed by Westminster in fourth and Barnes in fifth.

Lawrence Hall, a spokesman for Zoopla.co.uk, said: "The top end of the property market operates seemingly in isolation to the rest of the market.

"Wealthier buyers are relatively impervious to the economic problems affecting the rest of the market, most notably when it comes to getting a mortgage."

He added: "Foreign buyers in particular have gravitated towards top-end property in London over the last few years, which has pushed up demand and prices on more expensive property as they try to secure a limited supply of top-end homes in the capital."

Kensington Palace Gardens was named as the most expensive street in the UK, with average homes costing £25 million. The area has therefore been dubbed Billionaires Row.

Posted by Andy Britten

Published 8th January, 2013

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