The number of millionaire neighborhoods in London increased by 14 over the course of 2021 due to a pandemic-fueled property boom that saw areas with high average property prices almost disappear. Childs Hill, in north-west London, saw the largest jump, where the average price rose from about?788,000 in 2020, to around?1.12million in 2021. The area to the west of Hampstead is home to large houses with gardens. This five-bedrom semidetached house with five bedrooms, currently on sale through Hausman & Holmes, is typical of Childs Hill
/ Rightmove Our buyers are mostly locals who are downsizing. They always want a garden or parking,” Brian Lester, senior property consultant at William Nelhams & Co. “I believe prices will continue on the same trajectory in 2022. However, they haven’t reached their peak yet.” The Bank of England’s announcement of interest rates and rising energy bills have not slowed things down. I think people want to find some normality in their lives and that includes getting on with their lives. “Chiswick
/ Daniel Lynch. Other new millionaire neighborhoods include Town in Hammersmith & Fulham, Brondesbury Park and Brent; Tachbrook at Westminster; Clapham Commons in Lambeth; Northcote in Wandsworth.
Average sold price 2021
2020 Average selling price
Hammersmith & Fulham
Kensington & Chelsea
Kensington & Chelsea
Source: SavillsClapham Common
Areas where homes are now more expensive than 500,000 The stamp duty holiday was the catalyst for the recent surge in house prices, but the market’s momentum has been largely supported by low interest rates and people’s reassessment about their housing needs. This led to a significant increase in house prices in some parts of the UK. “Typically, the areas with the greatest growth reflect how much more affluent households have changed their locational preferences.” Lucian Cook, head UK residential research, said that while house prices below?150,000 are no longer a problem in London, only 10% of British wards qualify for them. To afford a home of this price, a buyer would need to have a household income of around?30,000.
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Only five?150,000 wards remain in the South of England, compared to 17 in East Suffolk, Great Yarmouth and Fenland last year. Even more wards were lost in the North East, where only five?150,000 wards remain. This is a drop of 50% to 48% of the North East’s wards, which was 17 last year in Great Yarmouth, East Suffolk and Fenland. As interest rates rise, this will be more apparent. “Keeping this in mind, it is important to know what the Bank of England will do regarding mortgage regulation. It would allow for more price growth in the medium-term, but it would also decrease the protection it provides against future downturns.