The number of homeowners with properties valued over £1 million in the UK has decreased by 4%, as the real estate expert Nick Millican explains. This drop led to 12,280 homes falling out of the £1 million-plus bracket. Even London was affected, but the city still maintains 330,668 £1 million houses. That shows that it experienced a smaller drop than the rest of the country. Specifically, there are 30,750 more million-pound-plus houses in London than in 2019, indicating the city’s resilience in this market.
Nick Millican attributes the drop in house prices across the UK to the increase in mortgages. This high borrowing rate weakened the 2023 property market, with fewer property transactions than those experienced during the pandemic.
He also states that the need further pushes the decrease in property prices for affluent homebuyers to shift priorities to favor spacious homes.
As a result, about 30% of homeowners dropped below the million-pound threshold. Despite these changes, London dominates the UK’s £1 million property sales. Its prime property prices are still holding up more than the rest of the country. Nick Millican adds that London accounted for eight of the top ten boroughs with the most expensive home sales in 2023.
Effect on Other Properties
Nick Millican explains more. He says that despite the overall decrease in property millionaires, some homeowners managed to sell their properties at significant profits. Some homeowners who sold their London houses in 2023 earned £204,190 more than they initially paid for them. That suggests that even homes that are below the million-pound threshold have the potential to be profitable, even as property prices drop.