Property millionaires to triple by 2030 - as prices double

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In just 14 years, one in four homes in London will be worth at least £1 million - as property prices double, and the number of property millionaires in the country triples. But what does it mean for you?

A study for Santander Mortgages found that by 2030, 1.6 million homes in Britain will be worth at least £1 million (up from less than half a million today), and the average property price will surge to more than half a million pounds.

The figures have been put together by LSE Professor of Economic Geography Paul Cheshire, who says overall, the average UK property price (which currently stands at £283,565) is expected to increase 23% by 2020 to £349,300. Then by 2030, the average UK property price will have almost doubled, surpassing the half a million pound mark at £557,444.

Hotspots

As ever, the overall figures mask even more dramatic changes in some parts of the country. London will be overwhelmingly overpriced - with 25% of properties costing more than £1 million by 2030. In some boroughs things are even more shocking - with two boroughs seeing 70% of all properties worth more than £1 million, and three boroughs seeing 50% over this mark.

The next biggest concentration of property millionaires is in the South East, where 7% are worth more than £1 million, followed by the East of England at 4%. Meanwhile, in vast swathes of the country, less than 1% of property will be worth over £1 million - including the North West, Yorkshire and the Humber, Scotland, the East Midlands, Wales, the North East and Northern Ireland.

What does it mean?

If you own a property, and only ever expect to move down the ladder, then this is good news, because you can expect to get more from any potential downsize - although in turn you will have to pay more for a smaller property.

However, for anyone yet to buy - or planning to move up the ladder - this could cause real problems. It's not just a question of rising prices, because buyers also have to deal with the fact that incomes will not keep pace with prices. At the moment the average property is already 7.9 times more expensive than the average income, but by 2013, the UK average will be an eye-watering 9.7 times. In London things will be even worse, where the average property will rise from 11.5 times income to 16.5 times.

Miguel Sard, Managing Director of Mortgages, Santander UK, said: "Property price inflation will tip many existing home owners into the million pound price bracket but could also price some aspiring buyers out of the market if they don't have the right support." He recommends working out how you can afford a sensible and affordable home as soon as you can, so you can find a place on the property ladder without over-stretching yourself.

Professor Cheshire adds: "By 2030 the divide between housing haves at the top and the have-nots at the bottom will be even wider than it is now. More owners will enjoy millionaire status, as homes that many would consider modest fetch seven figure prices in the most sought-after areas. Property price inflation is beneficial for existing owners who will see their net-wealth increase, but it will make entering the market more difficult still for new buyers, further highlighting the importance of the right timing, advice, support and financial planning; and not just having a mum and dad who bought a house but a grandparent too."

10 PHOTOS
Most viewed properties of 2015
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Property millionaires to triple by 2030 - as prices double

The tenth most viewed property of the year on Zoopla, was this beauty in Penrith.

It went on the market in August for just £100,000, and the low price and the opportunity for transformation drew in thousands of people looking for a potential project.

This lovely home was the ninth most popular property of the view. Potential viewers were drawn by the opportunity to buy a five-bedroom detached property, complete with a garage and a drive, for just £187,950.

The eighth most viewed property was another relatively new, detached property, with a garage.

This home also boasts four bedrooms for just £197,950

Seventh place is impressive for a property that only hit the market in November.

It's another relatively new detached property with a garage, at the rock-bottom price - of £180,000

The cheapest home in the top ten comes in at number 6. For just £40,000 you get three bedrooms and a garage in Liverpool.

It's no wonder that so many people, who have been squeezed by soaring property prices, are keen to view a property that offers a glimpse of hope.

In fifth place is the first of two mega-expensive homes on the list - and by far the most unusual. This one, in Newport, south Wales, hit the market in February for £1,899 950.

The 1720s hunting lodge and tower had been transformed during an episode of Grand Designs in 2009 - by a couple who added a dramatic glass extension. Thousands of us couldn't resist having a look around.

This swanky new-ish property in Gerrards Cross, Buckinghamshire, made number four, despite only going on the market in October.

It ticks all the boxes that have put so many of these properties on the list - being detached, and offering five bedrooms plus a garage.

The price reflects the fact it offers all that - in one of the priciest parts of the country. It makes it the most expensive property in the top ten.

A detached property in Bradford, offering three bedrooms for just £149,950 made it to number three.

It's perhaps unsurprising that it attracted so much interest, because it's one of the cheapest properties in the top ten, and the many thousands of viewers must have been astonished they could get so much family home for their money.

The joint-second cheapest property on the list is the second most viewed property in the country.

It benefited from the fact that it went on the market at the end of 2014, so had plenty of time to attract viewers. However, the appeal of a detached, 3-bedroom house for just £100,000 drew viewers in their thousands.

The number one most viewed property in 2015 was this 6-bedroom farmhouse in County Durham.

It demonstrates that we're a nation of dreamers, drawn by the affordable £175,000 price tag - as well as the huge potential of a six-bedroom farmhouse, outbuildings, almost eight acres of land and planning permission for a wind turbine.

It's no wonder s many thousands of us popped online to dream of a cheaper and simpler life in the country.

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