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Millionaire's row grows again in 2010

Millionaire's row grows again in 2010

Category: Mortgages

Updated: 11/01/2011
First Published: 11/01/2011

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

House prices at the top end of the market continued to accelerate away from the rest of the market during 2010.

While the housing market overall experienced a general slowdown last year, Primelocation.com said the prices of the most expensive properties in the UK had bucked the trend.

A boom year for property millionaires saw a 39% rise in the number of properties on the market worth over £1 million since January 2010.

In addition, there are now 37% more properties on the market worth £2 million plus than a year earlier, 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 a mass market property during 2010.

However, prices of top notch properties did not grow as fast in London as in the rest of the country.

The capital saw a 22% increase in available properties worth over £1 million, far slower than the 39% increase seen nationally.

Despite its slower pace of price rises, London still has more £1 million plus properties on the market than anywhere else in the country, with 42% of properties in this price range being in the capital.

"2010 may have been a difficult year for most homeowners, but those at the top end of the market are doing extremely well," said Andrew Smith, research director at Primelocation.com.

"There are more property millionaires now than ever, and they are getting richer too - they're pulling away from the mass market.

"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."

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