TENS of thousands of Londoners have become millionaires in the last year, says a new report, thanks to the rise in prices at the top end of the property market.
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There are now thought to be about 140,000 houses in London worth at least £1 million, a rise of about 25,000 or 18% on last year, according to the new survey from online valuers Zoopla.co.uk.
The bonanza for those in expensive homes comes in a year when average house prices across the UK fell by 3% and at a time when the world teeters on the brink of another recession.
In fact, economic uncertainty has helped London’s high-end property market, because the world’s super-rich see houses in Chelsea, Kensington and Mayfair as a safe haven for their cash. On top of that, the government has given property investors a helping hand by running a policy of low interest rates.
“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,” said Nick Leeming of Zoopla.co.uk.
“But at the upper end of the market, cash and equity rich buyers are enjoying some of the lowest mortgage rates in recent history.”
“This data shows clearly how differently the top end of the market is performing from mainstream Britain.”
