Millionaire’s row continues to grow in 2010

Nia Williams

January 10, 2011

Primelocation.com found that in fact prices at the top end of the property market have far outstripped the rest in 2010.

There are now 37% more properties on the market worth £2m-plus than in January, 46% more properties worth £5m-plus and 52% more properties worth £10m-plus. This compares to a 0.4% fall in the average asking price for a mass market property during 2010.

In London, there has been a 22% increase in available properties worth over £1m since January 2010, far slower than the 39% increase seen nationally.

However London still has more £1m-plus properties on the market than anywhere else in the country – 42% of properties in this price range are in the capital.

Looking at properties worth over £10m, the effect is more pronounced. The proportion of properties on the market at this price in London has fallen from nearly half (48%) in January to just over a quarter (27%) of the UK total.

The fall in available £10m+ 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 according to Primelocation.com.

Andrew Smith, research director at Primelocation.com, said: “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’re pulling away from the mass market.

“And the market for £1m-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 £2m home, for example, will cost its buyer an extra £20,000 in duty.”

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