Increase in number of property millionaires
There has been a 393% increase in the number of ‘property millionaires’ in the last decade, according to new research for Santander Mortgages.
There are currently 131,996 residential homes worth over £1 million in Britain, almost a five-fold increase on the 26,776 that existed in the year 2000.
While the credit crunch led to over 43,000 homes losing their millionaire status between 2008 and 2009, a 29% reduction, the market in million pound properties has recovered. Over the past year, the number of million-pound-plus properties has risen by around 29,000, returning the number of property millionaires close to its early 2008 peak when there were 147,000 of them.
Around 78% (103,168) of these million pound homes are in Greater London, with the capital’s SW post code claiming 29% of the nation’s millionaire properties. Indeed, postcodes in London and the home counties including towns such as Guildford, Kingston upon Thames and Hemel Hempstead occupy the top 10 places in Santander Mortgages’ Property Millionaire League Table. London’s SE postcode area has showed a 23-fold increase in its number of property millionaires in the past decade.
Edinburgh is the first non-South East area in the league, coming in at 11th place with 1,665 million-pound-plus dwellings. Warrington is in 20th place in the table, with 1,066 property millionaires, and Bournemouth is 22nd with 870.
Nigel Lewis, property analyst at PrimeLocation.com, said: "It’s amazing how fast million-pound-plus property prices have recovered since the dark days of mid-2008 when the market experienced significant price reductions. Our research shows that the number of million pound homes for sale has risen considerably over the past year and the number of people looking to buy them has also jumped by 20% - so it’s no wonder that the prime property market is recovering so fast."
Banks lending again to buy to let market
06 July 2010
Like the Lettings market which is currently suffering from a shortage of stock, the mortgage market demand is exceeding supply but the lending market is moving again slowly and banks are beginning to make money from it, say waellis.
The best deals at the moment are 60% loan to value although I have come across 80% but these are very expensive. The main lenders are BM Solutions and the Mortgage Works, followed closely by Clydesdale Bank and the Bank of China but I understand there are twenty new lenders coming in to the market so it really does appear to be opening up.
With the Bank of England regulating banks now and checking people can afford mortgages, there is much tighter control. It is essential for the housing infrastructure that the Private Rental Sector continues to grow but with first time buyers who play a vital role in the housing ladder still struggling to get a mortgage, there is an imbalance.
Funding has dropped 81% since 2007 – in 2009, it dropped by 69% compared to 2008. There are 1400 less products than in 2007 but this is obviously now on the increase. There does appear to be a recovery in the Buy to Let market with competition back. Professional landlords are a good risk to lenders and the Buy to Let market is profitable for them.
