HSBC: Million pound property numbers rise 15 per cent since mid-90s

Date:Tuesday 17th November 2009
Author: Susanna Kavka

The amount of properties valued at £1 million or above since 1995 has increased by 15 per cent, according to HSBC.

Research was carried out by the bank to coincide with the 15th anniversary of the National Lottery, which has so far created 2,300 new millionaires.

An increase in the average property price by around 213 per cent in the 15-year period has helped to push the number of million-pound sales to 2,800 this year, from 186 in 1995.

At its highest the peak number of £1 million homes was 8,834, which was recorded shortly before the recession began, in 2007.

The highest concentration for million pound houses is in London, with 61 per cent of the transactions in the past 15 years happening there. The most £1 million residences are in Kensington and Chelsea, where 18 per cent are on valued as belonging on millionaires' row.

Andy Mielczarek, head of retail products at HSBC, commented: "Despite a recent house price decline, the increase in the nation's property wealth has outstripped retail price increases by over four times during this period."

For consumers with a more modest budget, Moneyfacts has stated that rates need to fall further if the housing market is to see a return to its former strength.