In the last 7 months London became leader in terms of property price growth in the UK with +6%, followed by East of England with +3.6%. In general, the average real estate price in the country grew by 1.9% in June and reached a level of £ 168,941. In 10 of 13 districts homes and apartments appreciated in value last year except for Scotland, Northern Ireland and the area of Yorkshire and Humberside.
This year the highest growth rate was demonstrated by real estate units worth up to £ 1million — 6.6%, property in the price range of £ 1 million to £ 2.5 million grew by 5.4%. The «super-premium» property worth over £ 10 million went up in price by 1.5%.
According to a recent study, London again became the first in the rating of world cities that attract wealthy people with incomes of € 23 million and above. There are 4,296 HNWIs in London, most of whom are entrepreneurs having established their own business, which they either sold or became shareholders. The average assets of a multimillionaire in London make € 125 million; usually they are men with the average age of 57 years.
As many of our readers know, in June, Great Britain was celebrating 60th anniversary of the Queen’s coronation. Crown Estate, owned by Queen Elizabeth, operates a number of properties in central London. It was announced that due to an increase in real estate prices, the company’s annual revenue grew by 5.25% to reach a record of £ 252.6 million. By the law, the Queen owns 15% of this amount, which means that 2014 — 2015 she will have about £ 38 million at her disposal. The rest goes to the State Treasury or the Ministry of Finance. Among the real estate properties owned by the company there are white buildings on one of the main streets of London — the famous Regent’s Street, wind farms and the most of the UK seabed. The approximate estimated value of the entire investment portfolio owned by the Queen makes ca. £ 8.1 billion. In this case, the reigning king or queen is considered the owner of properties and has no right to sell any of them.
In total currently there are approximately 8,230 streets with an average value of the property over £ 1 million in the UK. 34% of them (or 2789) as well as the 20 most expensive ones are located in London. As before, the first place goes to Kensington Palace Gardens, a street under security surveillance located opposite to Kensington Palace and the main park of London — Hyde Park. The average price of a house here reaches £ 36,066,148. The second place belongs to The Boltons (Borough of Kensington) with an average value of £ 23,375,758, where Madonna once owned a mansion. The last of the top three is Grosvenor Crescent in Belgravia with the price of £ 19,768,963. If we consider the average price of real estate not by streets but districts, the undisputed leaders are Kensington (£ 2,326,439) and Knightsbridge (£ 2,034,706).
The most expensive area outside London is Virginia Water in the county of Surrey with an average property price of £ 1,822,560. This area is chosen by those who wish to purchase a family residence with a large territory, located in a protected park area with golf courses and a world-class spa; another definite plus is a short distance to the best private, public and international schools of Great Britain.
An interesting survey was recently released by real estate analysts: due to the record real estate price growth in London they reviewed the price distribution in the Monopoly — the most famous game related to real estate. If it had not been released 80 years ago, but today, of all the streets present in the game, the most expensive items and the cheapest street would remain the same: streets in the area of Mayfair (£ 400) and Old Kent Road in South East London (£ 60). Today the price would be £ 1,426,689 and £ 192,714 respectively. In 1936, the average property value in the Monopoly game was £ 208, now it would be £ 788,106.
The five most expensive objects and the 2 cheapest streets would remain the same. However, in general, there would be a lot of rearrangements in the playing field. For instance, Whitehall located on the banks of the River Thames within a short walk of Westminster Abbey, would move from the 10th cheapest to the sixths most expensive property (£ 1,172,778) or the last lot of the yellow zone before the green pattern of Oxford street, Bond street and Regent street with the price of £ 1,193,960, £ 1,235,485 and £ 1,244,476 respectively. The biggest price crash, however, would happen to Vine street (City of London, just minutes from the Tower of London) — minus 8 places.
It is widely known that properties within walking distance of underground stations are more expensive. A recently published research indicates how much the price increases as you move from one underground station to another: £ 152,640 per each minute of this trip.
The lack of residential property in London is more and more becoming an insoluble problem with each year. To tackle this problem the Mayor of London Boris Johnson proposed to build a new large airport in the east of the capital and to create in place of Heathrow a new residential area that potentially can accommodate about 250,000 residents, which can partly solve the problem with the lack of residential property. London attracts a growing number of tourists and is a major transit point for passengers. In this regard, the UK’s main airport Heathrow needs more space and capacity to increase the passenger traffic.
UK universities and schools remain on the list of the most prestigious educational institutions in the world. In addition to the steady growing demand for apartments for students, investors are attracted by the income guaranteed for years ahead. The growing number of students coming to the UK ensures that residential complexes for students near universities across the UK are becoming one of the most popular investment types.
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The following sources were used during the preparation of this report: www.propertywire.com, www.hometrack.co.uk, www.cbre.eu, www.rightmove.co.uk, www.thisismoney.co.uk, www.moneywise.co.uk, www.prian.ru, www.knightfrank.com, www.rg.ru, www.daylymail.com, www.euromag.ru, www.londonlovesbusiness.com,www.guardian.co.uk, www.bloomberg.com, www.globalpropertyguide.com, www.express.co.uk, www.lonres.com, www.standard.co.uk, etc.