London has highest concentration of property millionaires, study says
18:24 03 January 2013
Almost two thirds of the country’s property millionaires are based in London, with the equivalent of 100 created in the capital every day last year, according to a study.
Areas with the highest concentrations of property millionaires (proportion in brackets)
1. Kensington, £2,186,471, 64 per cent
2. South Kensington, £1,830,093, 63 per cent
3. Chelsea, £1,650,364, 49 per cent
4. Westminster, £1,226,655, 42 per cent
5. Barnes, £1,079,808, 40 per cent
6. Notting Hill, £1,475,540, 39 per cent
7. West Brompton, £1,277,950, 37 per cent
8. Belgravia and Pimlico, £1,178,742, 34 per cent
9. Earl’s Court, £985,327, 32 per cent
10. Hampstead and Belsize Park, £1,069,623, 31 per cent
A total of 182,583 people with homes worth more than £1million are currently registered as living in the capital, property search website Zoopla said.
The organisation said London has had strong demand from wealthy overseas buyers looking for a safe haven from the eurozone troubles and prices have also been driven up by a limited number of homes in these markets for potential buyers to choose from.
Estate agent Savills has also reported an influx in French buyers because of Francois Hollande’s proposes 75 per cent tax regime, which was vetoed by the French constitutional council.
Kensington wears the crown for the biggest concentration of property millionaires in Britain, with homes there costing an average of £2.2 million.
Despite its relatively small size as a London borough at 12km squared, Kensington and Chelsea contains 12 per cent of Britain’s property millionaires at 36,293.
Lawrence Hall, from 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.
“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.”
Some analysts have suggested that a seven per cent stamp duty rate on homes worth over £2 million which was introduced last spring could cause the top end of the London market to cool off slightly this year, although there is general agreement that prices in the English capital are likely to continue on an upward path in 2013.
The research was taken from Zoopla’s website, which uses various factors such as recent sales in the local area to estimate how much homes are worth.