Zoopla , a property market website, has conducted a survey that indicates that the number of residential properties worth more than Â£1m has decreased from 1 in 97 before the crunch to about 1 in 150 today. Zoopla estimates this to mean that 35% fewer properties are worth more than Â£1m than before Nov 2007.
This drop has been most significant on the North East where 87% of homes previously worth over Â£1m have now dropped below the threshold. In Wales 56% of expensive Â£1m plus properties have dropped below Â£1m, in the Midlands the figure is 50%.
It is no surprise that London has been least effected with 29% falling below Â£1m. Overall the South East has seen 39% dropping into the under Â£1m bracket. But 8 out of 10 homes still above Â£1m are located in the South East of England with most either in London or in Virginia Water Surrey.
In London Kensington, South Kensington and Chelsea have the highest proportion of homes still worth more than Â£1m.
The totals of are that before Nov 2007 283,168 homes fell into the Â£1m plus club, now that figure stands at only 183,630.
This is despite most housing market activity being in London and the South East where bank bail outs and foreign buyers taking advantage of the weak pound has had the most positive effects.
The property millionaires’ club has definitely taken a very hard hit during the last couple of years and there is no reason to believe that the slide of homes dropping below that magic threshold will not continue.