Thriving UK Housing Market Creates More Millionaires
More than 300,000 British homes are worth over £1 million pounds ($1.5 million), up 32 percent on last year, according to a property "rich list" out on Friday.
Rising house prices, particularly at the prime end of the market, created 77,894 new property millionaires in the last year, said Zoopla Property Group in its 2013 Property Rich List. Furthermore, the number of streets where the average property value is over £1 million jumped to 8,230.
Unsurprisingly to those familiar with England's expensive capital, London was home to all 20 of the country's most expensive streets. Kensington Palace Gardens — dubbed "billionaires' row" — once again retained its position as Britain's most expensive street.
"Even lottery winners can only fantasize about owning a home on streets like Kensington Palace Gardens and The Boltons [also in South Kensington]," said Lawrence Hall, the head of communications at Zoopla, in a news release.
The average property on Kensington Palace Gardens, home to Leonard Blavatnik, the second wealthiest man in the U.K., and a stone's throw from where Prince William and the Duchess of Cambridge live, is currently worth £36.1 million ($55.5 million). Meanwhile, a house in The Boltons, formerly home to Madonna, will set you back around £ 23.4 million ($35.9 million).
"Property values in these super-prime areas are astronomically high and have risen substantially over the past year. Only the super-wealthy can entertain the notion of living on the most expensive streets and they are paying as much for the address and location as they are for the size and quality of the property," said Hall.
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Despite the U.K.'s anemic economy, property prices have continued to rise, fueled by easy monetary policy, housing shortages, and government schemes to make home-buying more affordable. In May, housing property prices in England posted their biggest gain since the property boom in 2007, raising fears of a new housing bubble.
(Read More: UK Property Price Rises Stoke Fears of New Bubble)
However, Hall noted that price rises were heavily driven by London and the prosperous South East.
"You can find magnificent mansions in other parts of the country for a similar price to even just average properties in areas like Kensington," he said. According to Zoopla, the average U.K. home is currently worth £ 230,924 ($355,136).
Britain's Top 10 Most Expensive Streets:
1. Kensington Palace Gardens, London W8
2. The Boltons, London SW10
3. Grosvenor Crescent, London SW1X
4. Courtenay Avenue, London N6
5. Compton Avenue, London N6
6. Frognal Way, London NW3
7. Park Place Villas, London W2
8. Montrose Place, London SW1X
9. Cottesmore Gardens, London W8
10. Palace Green, London W8
—By CNBC's Katy Barnato