22 January 2024 , 12:36
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In 2023, there were 60,000 fewer property millionaires across the UK compared to the previous year, according to research.
The study suggests around 670,100 homes had a value of £1 million or more, as per real estate firm Savills. The total count of property millionaires declined by 8.3% (60,260) in that year, due to increased mortgage costs and tough housing market conditions.
Yet, it was still up by 28% (146,490) when compared to 2019 - before the impacts of Covid-19 led to a "race for space", pushing people to work remotely and buy properties in more rural areas. Lucian Cook, head of residential research at Savills, commented: "The race for space and dash to the countryside from mid-2020 drove a sharp increase in the number of £1 million homes outside of London and other urban settings."
Mr. Cook added: "However, increased mortgage costs and a rebalancing of demand back to city living have meant about 30% of those whose homes crossed the £1 million threshold, have, for the time being at least, become aspiring million pound homeowners once again." In the current market scenario in 2023, UK's £1 million home market is valued at £1.32 trillion, down from £1.43 trillion in 2022, researchers reported. Despite these changes, London recorded the smallest fall in property millionaires (4%) in 2023, followed closely by Scotland (5%), as found by Savills.
On the flip side, Wales, the South East and East of England, and Yorkshire and the Humber all saw a 13% annual drop in property millionaires. However, Wales (113%), the North East of England (79%) and the East Midlands (79%) have seen the most significant increases in housing stock valued at £1 million or more since 2019.
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