Tue 26th Feb, 2008
Three-fold increase in number of £1m-plus houses
Although there is lots of speculation out there that the property boom is finally coming to an end and we may even be heading for a crash its legacy will live on for a very long time. A new report released recently has shown that the number of properties on the market that are valued in excess of £1m has more than trebled in the past five years.
The report released by the Halifax estate agents shows that in June 2002 there were 2,250 sales of properties that exceeded £1m. However that figure has drastically increased in recent years and figures for June 2007 showed that almost 6,200 homes were sold for more that £1m.
The massive boom in the market has sent house prices soaring and it is estimated that there are more than 88,000 houses worth more than a million. This is in stark contrast with only 33,000 just five years ago and shows just how big of an impact the housing boom has really had.
The house price boom has helped increase the number of people who are now worth more than £1m but it has also had its downside. More and more people who are looking to get onto the property ladder find it increasingly difficult as the cost of housing is now so great and the cost of getting a home loan so high. As well as this many people who have bought their first home recently will have little hope of seeing the kind of returns from their investment that we witnessed through out the 90s and into the 2000s as their high loan repayments make moving an impossible dream.