Despite the predictions of a double dip recession and the air of doom and gloom around us, property owners owning homes worth over a £1 million are on the increase. The number of property millionaires has gone up by nearly 5 times over the last ten years! According to this is money 9. 7. 10 they tend to be older home owners who initially bought their properties years ago with a very small mortgage and for a very modest amount in comparison with the value of the property today.
The report sates:
"The London SW postcode has the most property millionaires and the Greater London is home to 78% of the homes worth more than £1m, with 29% being in the sought after SW postcode.
The up-and-coming SE postcode has seen the biggest rise in the number of homes topping £1m, with the figures soaring 23-fold in the past decade.
The top four locations for million pound properties are all in London, with Kingston upon Thames, Guildford and Twickenham the three top towns outside of the capital. "
So although property prices, in general, are stagnant or are falling at the moment those who own properties at the top end of the market are seeing different trends.
Stamp duty land tax is currently payable at a 4% on properties worth £500, 000 or more, however, there are plans to introduce a new SDLT threshold, next year, of 5% on properties worth £1million or above which will add a staggering amount to the SDLT tax bill.