Britain boasts 100,000 new millionaire homes

More than 100,000 home owners in the UK have become property millionaires over the past decade, despite the blows dealt to the housing market by the credit crunch. New research has found that home buyers are increasingly investing in their properties too, carrying out home improvements and taking out comprehensive home insurance policies to provide additional security.

The Telegraph reports that the number of British homes worth more than £1 million has risen from less than 27,000 at the start of the millennium to around 132,000 today - though an additional 43,000 homes reportedly lost their millionaire status during the recession.

London was found to have the highest concentration of millionaire properties, accounting for almost 80 per cent of the country's total. The city's upscale SW postcode area alone claims almost 30 per cent.

Mortgage lender Santander, which carried out the research, also reported a large number of high-value properties in the Home Counties, particularly the towns of Guildford, Kingston upon Thames and Hemel Hempstead.

"For many of us our 'home is our castle' and, in recent years, we've often viewed our home as a key investment too," said the company's director of mortgages, Phil Cliff. By carrying out improvements to modernise homes, buyers could also enjoy reduced home insurance quotes.

Melanie Bien of Private Finance explained that homes costing more than £1 million are also much more resistant to price falls than the rest of the market. "Despite volatility in the housing market over the past decade, there has been a significant increase in the number of property millionaires," she noted.

"This also underlines why housing is so emotive, with so many people having significant wealth tied up in their homes."

Thu, 08 Jul 2010 01:36:00 GMT