The real estate landscape in Great Britain has witnessed significant shifts in recent years, largely influenced by the COVID-19 pandemic. We’ll explore the trends and data regarding the number of property millionaires, offering insights into the market’s dynamics.

The Current Scenario

As of January 22, 2024, Great Britain boasts approximately 670,100 homes valued at £1 million or more, according to an analysis by property firm Savills. While this number is impressive, it’s noteworthy that the total count of property millionaires decreased by 8.3% in 2023, representing a decline of 60,260 properties compared to the previous year.

However, when we compare these figures to 2019, we find a more positive perspective. The number of property millionaires remains 28% higher, with an increase of 146,490 homes over four years. This data indicates substantial growth in the market despite the recent dip.

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Regional Disparities

A closer look at the data reveals that the changes in property millionaires are not uniform across all regions of Great Britain. London experienced the smallest decline, with only a 4.0% drop in the past year, showcasing its resilience.

Scotland followed closely with a 5% decrease, making it the second least affected region. Conversely, regions outside of London saw more significant reductions in the number of property millionaires. Nonetheless, it’s important to note that even with these decreases, the number of £1 million homes outside of London is still 52% higher than in 2019.

Notable Increases

Despite the overall decline in certain regions, others have seen remarkable increases in the number of property millionaires. For example, Wales witnessed an astonishing 113% surge in housing stock valued at £1 million or more since 2019. The North East and the East Midlands also experienced substantial uplifts, both at 79%.

These statistics emphasize the persistent demand for high-value properties across various regions, reflecting the diverse preferences of buyers.

Factors Behind the Fluctuations

To understand the factors contributing to these fluctuations, we must consider the broader context. Initially, the pandemic triggered a “race for space,” prompting many individuals and families to seek larger homes outside of urban areas. This surge led to a significant increase of £1 million in homes outside of London.

However, as the pandemic evolved and mortgage costs rose, some shifted their focus back to city living, leading to a partial rebalancing of demand. Approximately 30% of those who had crossed the £1 million threshold returned to city living, at least temporarily.

Prime London’s Dominance

Despite the overall decline in property millionaires, prime locations in London continue to dominate the £1 million property market. A separate analysis of £1 million-plus sales in 2023 revealed that London boroughs such as Kensington & Chelsea, Westminster, Camden, Hammersmith & Fulham, and Richmond Upon Thames accounted for the highest percentage of such sales.

London boroughs occupied eight of the top 10 local authorities with the highest percentage of £1 million-plus sales in 2023. Elmbridge and Mole Valley, located outside of London, also made the list.

In Conclusion

The number of property millionaires in Great Britain has experienced fluctuations, primarily influenced by shifting buyer preferences during the COVID-19 pandemic. While there was a decline in 2023, the overall growth since 2019 remains noteworthy, indicating the enduring appeal of luxury homes across various regions.

As we look ahead, it will be interesting to observe how the property market continues to adapt to changing circumstances. Whether it’s the allure of urban living or the appeal of spacious countryside homes, the dynamics of the real estate market are sure to keep evolving.

FAQs

1. What were the main reasons behind the decline in property millionaires in 2023? The decline in 2023 can be attributed to increased mortgage costs and a shift in demand back to city living, following the initial trend of seeking larger homes outside of urban areas during the pandemic.
2. Which regions in Great Britain witnessed the most significant increase in property millionaires since 2019? Wales, the North East, and the East Midlands experienced substantial uplifts, with notable increases of 113%, 79%, and 79%, respectively, in housing stock valued at £1 million or more since 2019.
3. How does London compare to other regions in terms of property millionaires? London remains a strong contender in the property market, with the smallest decline in property millionaires in 2023. Several London boroughs also dominated the market for £1 million-plus sales.
4. What percentage of sales over £1 million occurred in London in 2023? In 2023, London accounted for a significant percentage of such sales, with Kensington & Chelsea leading the way at 61.6%.
5. What factors contributed to the rise of property millionaires outside of London in recent years? The initial surge was driven by the “race for space” during the pandemic, as people sought larger homes outside of urban settings. However, changing circumstances, including increased mortgage costs, led some to return to city living.