Property millionaires outstrip jackpot millionaires

The National Lottery has now been running for 15 years, creating over 2,300 jackpot millionaires. Now, research from HSBC has revealed that 43,400 ‘property millionaires’ were created in the same period.

HSBC analysed Land Registry data in England and Wales relating to million pound property sales over the past 15 years.

According to the report, since 1994, 61% of £1 million plus properties sold were in Greater London. Kensington and Chelsea (18% of sales) and the City of Westminster (12% of sales) accounted for nearly half of all of London’s £1 million plus sales. The postal district, Elmbridge, Surrey (South East), has the largest concentration of million pound sales outside the capital, making up 4% of all £1 million sales. Towns in regions outside London with the highest concentration of £1million sales include Cobham (South East), Poole (South West) and Altrincham (North West).

In 1995 only 186 properties across England and Wales sold for over one million pounds. The number gradually rose to a peak of 8,834 in 2007. Only four residential properties officially sold for over £20 million, and 64 properties sold for over £10 million.

HSBC predicts that 2009 is set for an estimated 2,800 £1 million plus sales, down 68% on 2007 figures but still 15 times greater than 1995.

The average house price across England and Wales has risen 213% over the past 15 years from £64,836 in 1995 to £202,813 in 2009 Q2.

Andy Mielczarek, Head of Retail Products, HSBC, said:

“One million pound plus sales have grown dramatically since 1994, from 186 in 1995 to an estimated 2,800 sales for this year; up 15 times.”

“This growth in the number of £1 million plus properties has been helped by the staggering 213% increase in house prices over this period. Despite recent house price declines, the increase in the nation’s property wealth has outstripped retail price increases by over four times during this period.”