There was good news for property millionaires in the latest Land Registry report as it revealed that there had been a 19% increase in sales for those valued at more than £1million. This equated to an increase by 232 completions from July 2013 as the same month this year saw 1,439 deals in England and Wales.
This comes despite a 0.2% drop in house prices since August but the average property value is still up 7.2% on last year at £177,299. Lenders have begun to dampen spirits of the property market by suggesting that potential buyers will now be put off by the raising house prices and the constant prospect of higher interest rates.
Property millionaires haven’t been put off though and reports throughout the year, like this from This is Money, have spoken of the continuous leaps in the number of British big-money homeowners. This is a result of soaring prices, mainly in the south, and a positive economy.
It is estimated that the best part of 200,000 property millionaires have been created during the past year; an almost 50% increase with around half a million homeowners now falling into that category. In fact, 22% of home sales in the first six months of 2014 fell into the category of more than two million pounds – although, this is a slight drop on the same price in 2013.
This huge growth means that there are 10,613 streets now boasting an average property value above £1 million. It has been widely documented that the interest of rich overseas investors has been a trend, mainly in London, and the capital has almost 40% of these million-pound streets as well as the 20 most expensive houses across the United Kingdom. Not only this but in the first half of 2014, 70% of all million pound housing sales came from the capital (followed by 16% in the South East and 6% in the East).
These figures show that the market continues to steadily grow but there are a number of regions doing better than others. While the rich get richer, it is the likes of London, Surrey and Buckinghamshire that are on the march but Humberside, the North East and Yorkshire aren’t quite enjoying the same success.
With the north struggling through lower economic activity, there is a sustainable feel about the supply and demand found in London and the South East. This has led to these micro-markets enjoying lasting prosperity.
At the other end of the spectrum, things continue to look good for the first time buyer market, too. The Help to Buy scheme has made lending accessible for everybody and assisted in a more than 10% increase in these sales from the previous year – along with an 8% fall in the big stumbling block of deposits.
The sale of these million pound properties is impressive, and they outperform the rest of the market, but they are only a small portion. Since 2009, million pound plus property deals are up some 345%, and they are outpacing property sales of less than a million. Although it’s worth remembering they account for just 1.3% of property sales nationwide as demand grows far and wide.