There are more properties in the UK for sale worth over £1 million with the number increasing by 39% in 2010, research suggests.
Last year was a boom year for property millionaires as prices at the top end of the property market have far outstripped the rest, according to the research from Primelocation.
There are now 37% more properties on the market worth more than £2 million than in January 2010, 46% more properties worth £5 million plus and 52% more properties worth £10 million plus.
This compares to a 0.4% fall in the average asking price for the mass-market property during 2010, the report from the company says.
In London, there has been a 22% increase in available properties worth over £1 million since January 2010, far slower than the 39% increase seen nationally. This now gives the capital a reduced share of the UK’s £1 million plus property for sale market.
However, London still has more £1 million plus properties on the market than anywhere else in the country as 42% of properties in this price range are in the capital.
Looking at properties worth over £10 million, the effect is more pronounced, the report shows. The proportion of properties on the market at this price in London has fallen from nearly half, 48%, in January 2010 to just over a, 27%, of the UK total. The fall in available £10 million plus valued property in London could in part be due to the wealthy overseas property investors capitalising on a weakened pound by buying up the capital’s most desirable properties, it suggests.
‘2010 may have been a difficult year for most homeowners, but those at the top end of the market are doing extremely well. There are more property millionaires now than ever, and they are getting richer too, they are pulling away from the mass market,’ said Andrew Smith, research director at Primelocation.
‘And the market for £1 million plus homes is set to get even hotter as the April 6th stamp duty deadline looms, when it rises from 4% to 5% on properties over that threshold. That will mean a £2 million home, for example, will cost its buyer an extra £20,000 in duty,’ he added.