Rising house prices to make millionaires "ten a penny"

01 March 2004
The number of millionaires in Britain will triple in the next decade as house prices continue to soar, a new report predicts.

Research published by the Centre for Economics and Business Research (CEBR) shows that a rise in the value of homeowners' properties has boosted the number of millionaires in the UK.

The CEBR estimates that by 2010, 760,000 people will be millionaires compared with 230,000 in 2001, with around 90 per cent of the increase down to rising house prices.

CEBR chief executive Douglas McWilliams said: "Millionaires will be ten a penny by 2010. I think we will no longer be able to class millionaires as rich people, they won't be that unusual anymore."

He added that rising wealth would allow older people to finance spending on children, holidays, second homes or hobbies.

The CEBR found that the average homeowner retiring in 1990 had £62,055 of housing wealth, while somebody retiring in 2000 would have had £76,505. This is expected to rise to £161,113 by 2010 and £246,705 for a homeowner retiring in 2020. The report predicts that by 2020, there will be 1.9m millionaires in Britain.