During the third quarter of 2006 the number of property millionaires in England and Wales reached 78,219. This compares to 59,400 property millionaires during the same period in 2005 and demonstrates a 32% increase in the proportion of individuals who now own estates worth over one million pounds in the UK.
The figures, based on the latest Land Registry sales data and figures from the Department for Local Government and Communities, also reveal a large regional disparity in the country’s distribution of new property millionaires.
Over the last 12 months London continued to lead the way in housing the highest proportion of UK property millionaires. At the end of September 2006, the total number of property millionaires for the third quarter of the year, reached an estimated 46,668; nearly 60% of the UK total. This is a 38% increase on the third quarter of 2005.
The second highest concentration of property millionaires remains in the South East. The region boasted 19,040 property millionaires at the third quarter mark of 2006, up 28% from the third quarter of 2005 and accounting for 24% of the UK’s total.
The North West has shown the second greatest increase in the number of property millionaires, outside of London, from the third quarter of 2005 to the third quarter of 2006. Average property selling prices in the region’s cities of Liverpool and Manchester have seen increases of 14% and 13% respectively and have in turn contributed towards a 37% rise in the region’s property millionaires from 1,874 (Q3 2005) to 2,560 (Q3 2006).
Nearly all other regions of the UK follow this upward trend; with rises of 36% in the West Midlands, 30% in East Anglia, 13% in the South West, 3% in the East Midlands and 2% in Wales. However, the North and Yorkshire and Humberside have seen a drop in the number of property millionaires as the average property selling prices for many of their towns fell over the year with, for example, Skipton and Kendal seeing decreases of 11% and 5%, respectively.
Matthew Wyles, group development director at Portman Building Society, commented: “London and the South East continue to dominate the property millionaires league table – this should come as no surprise. City bonuses have been generous and plentiful in recent years and much of this wealth has poured into residential property. With the 2007 bonus season likely to yield another excellent result for city workers, we confidently expect the London property market to extend its lead.”
