×

London property millionaire? You’re not alone

There are now close to 500,000 property millionaires in the U.K., after several years of house price growth which have surprised even estate agents.

And the priciest properties are, unsurprisingly, in London, according to research from property website Zoopla.


114988765OS007_LEAGUE_TABLE
Oli Scarff | Getty Images News | Getty Images

There are 12 streets in the U.K. where the average house will set you back over £10 million ($16.6 million), and they are all in London. The most expensive is Kensington Palace Gardens, with an average house valued at over £42 million, where international business tycoons like Lakshmi Mittal and Roman Abramovich have their London base – a stone's throw from the Duke and Duchess of Cambridge.

Lower down the scale, the kind of wealth creation through property shown in these numbers (there are now 49 percent more property millionaires in the U.K. than last year) is unlikely to continue at the same pace, with rate repayments on mortgages set to rise.

House price growth in London is likely to slow in 2015, before stalling completely in 2016, according to new predictions from estate agents Savills. London house prices will grow by 15 percent, the estate agent predicts, a rise in its earlier forecasts, but growth will be slower than forecast for the next four years.


"House price growth in the mainstream market has been underpinned by record low interest rates, rising loan-to-income lending and pent up demand from buyers re-entering the market as the economy and consumer sentiment have improved," Lucian Cook, Savills UK head of residential research, said in a statement.

"But these extraordinary rates of house price growth cannot continue in the current, more regulated mortgage environment, particularly in the face of likely interest rate rises."

- By CNBC's Catherine Boyle