UK homes worth £1m to ‘triple by 2030’

One in four London homes set to cost more than £1m

The number of UK homes worth at least £1 million is to triple by 2030, according to a report.

Almost half a million homes in the UK - representing 1.77 per cent of the total housing stock - are currently valued at £1 million or more. 

By 2020, this is set to rise to almost 689,000 (2.37 per cent), and by 2030, it will reach 1.6 million or 5.14 per cent, according  to a report by Santander.

Million pounds properties will mainly be concentrated in London and the South East of England, with one in every four properties in the capital expected to be worth £1 million or more. 

In Kensington, Chelsea and Westminster more than 70 per cent of homes are expected to reach or outgrow the value.

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Santander analysed data from the Office for National Statistics, the Office for Budget Responsibility and the Land Registry and found that the average price of a property in the capital will jump from £534,000 to £1.27 million. 

Meanwhile the average price of a property in the UK as a whole is expected to double from £283,565 to £557,444 by 2030.

The figures show growing inequality across the country.

In Northern Ireland, just 0.28 per cent of homes will be worth over £1 million.

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Less than 1 per cent of £1 million properties are in the Northeast, Yorkshire and The Humber, the Northwest, Wales, Scotland and East Midlands, the report said.

“For those who still aspire to buy a home, it will make taking that step on to the ladder increasingly difficult,” said Paul Cheshire, professor of economic geography at London School of Economics, who authored the report.

House prices have hit a new record high less than two months into 2016, according the latest report by Rightmove.

The property website said that new seller asking prices have increased by 2.9 per cent, or £8,324, in February, pushing the average new seller asking price in England and Wales to £299,287. 

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