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The Number of Million-Pound Houses in the UK Rises
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
The number of million-pound houses in the UK rose by 12% in the first half of 2016 compared with the same period last year, according to a report from Lloyds Bank.
However, the study also found that the average price of a million-pound property has gone down over the last two years.
The average price of a home sold for more than £1m has dropped by £135,251 between 2014-16. The bank believes that the price drop was partly due to a reduction in sales at the higher end of the market.
The Number of Million-Pound Houses in the UK Rises
During the first six months of 2016, 6,684 million-pound houses were sold – up by 12% on the 5,946 sold in the same period of 2015.
The average price of a property selling for more than £1m has dropped from £1,862,578 to £1,727,327 over the past two-year period.
Even so, a buyer paying the average price would have still owed the Government a whopping £121,000 in Stamp Duty. Based on the total number of sales, this suggests that the Government has earned £808.7m from buyers of million-pound houses.
Changes to Stamp Duty in December 2014 have made it more expensive for buyers to purchase a home worth more than £937,500.
Virginia Water in Surrey has been named as the only million-pound town in Britain, while Cobham and Beaconsfield have lost their previous year’s status.
The North East of England has recorded the greatest rise in the number of million-pound property sales, with a huge 83% increase – due to 11 purchases.
Unsurprisingly, more than nine in ten sales of million-pound houses were in London, the South East and East of England, with Kensington and Chelsea and Westminster leading the way.
The capital saw 4,238 sales of million-pound houses in the first half of the year.
Scotland was the only part of Britain to see a decline in the number of million-pound home sales, with a 33% decrease.
The Private Banking Director at Lloyds Bank, Sarah Deaves, says: “Over the past year, there’s been an increase in the number of houses being sold for more than £1m, but there’s also been a dip in the average house price at this level for two years in a row.
“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.”
Indeed, recent reports claim that US property buyers are seeking refuge in the UK market following this week’s election result.
The average house price in the UK is now £217,411, according to the latest House Price Index from Halifax.
