New data has illustrated that over half of residential properties in the UK are now worth £1 million or more. Property expert Simon Morris discusses what this means for investors who are looking to capitalise on the good fortunes of the UK residential property market.
UK residential property prices
There’s little doubt in the mind of even the most cautious investment expert that the UK residential property sector has recovered from the economic crash. According to the Daily Mail, data from the Office for National Statistics indicates that the average UK house price in May 2015 was £274,000; this is £57,000 higher than the market’s previous peak in May 2008.
Number of £1 million properties rises 8.3%
New research from property website Zoopla indicates that for the first time, over half the residential properties in the UK are now worth £1 million or more. This data shows that 524,306 properties now fall into this bracket; an increase of 8.3% from 2014.
The Zoopla statistics went onto reveal that London is the city which has the most properties that are worth £1 million or more. A total of 43% of the 10,958 streets in the UK with £1 million+ homes are located within its capital city. Furthermore, this data proved that there are now 13 streets in the country where the average house price sits at over £10 million; they’re all in London.
Regions outside London
However, the Zoopla research went on to highlight that there are a number of other locations in the UK that now boast properties which fall into this exclusive category. The areas with the highest proportion of streets with properties worth £1 million or more were Surrey with 158, Guildford with 154 and Leatherhead with 144.
Zoopla’s Lawrence Hall commented on the meaning of these statistics. He was quoted by Property Wire saying: “London continues to be the epicentre of the million pound property market in Britain but there are a number of high value property areas outside the capital, particularly in Surrey and Buckinghamshire, that are very attractive to professionals seeking to live outside yet within easy reach of the city and enjoy low crime rates coupled with good schools.”
Invest in London?
This may lead investors to believe that they should invest in residential property markets outside of London if they want to generate revenue whilst keeping costs down. This may be a prudent investment strategy, however Simon Morris would argue that it’s still possible to invest in London for less than £500,000 if you do extensive research and weigh risk vs. reward carefully, before you invest.