Sales of million pound homes in the UK are rising, whilst the average price of homes in the same bracket has fallen by 7% over the last 24 months, a new research has revealed.
During the first six months in 2016 the number of million pound sales was 12% higher than during the same period one year earlier, the latest research by Lloyds Bank has revealed.
However, the 6% increase overall between the first half of 2014 and the same period of 2016 contrasts with growth in million pound sales over the past five and 10 years of 88% and 162% respectively, showing a significant slowdown over the past two years.
Regardless of this trend, the prime market has still outperformed the rest of Britain’s housing market, with sales of properties under £1 million only recording an increase of 2% from the first half of 2015 to the first half of 2016.
So, whilst the overall number of properties sold for £1 million or more has risen, the average price for houses in the seven-digit world has fallen for the last two years from £1,862,578 in the first half of 2014 to £1,727,327 in the first half of 2016, a fall of 7%.
The report names a decline in sales at the very top end of the market, properties worth £5 million and more or £2 million plus, as a main influencer of the drop in value.
Otherwise, as with most property sales statistics this year, the new stamp duty surcharge might’ve also had an effect on the rise in sales during the first half of 2016.
Whilst 2015 had three British million pound towns (places where the average of all property sales is more than £1 million), Virginia Water, Cobham and Beaconsfield, the recent development left Virginia Water in Runnymede as Britain’s only millionaire’s haven.
Over the last year, there’s been an increase in the number of houses being sold for more than £1 million, but there’s also been a dip in the average house price at this level for two years in a row,”
said Sarah Deaves, private banking director at Lloyds Bank.
“The strength of the London economy, stamp duty changes and the attractiveness of UK prime property to overseas buyers, could all play a part in the boost to sales at this level. Due to a reduction in the average prices for all those homes sold for more than £1 million, Virginia Water in Surrey is now Britain’s only million pound town. In the first half of 2015, it was one of three towns with this status,” she added.
The latest figures for 2017/2018 prime property can be found here.