Million pound houses are becoming much more common in the UK. The number of houses selling for at least one million pounds increased by 12% from January to June 2016. However, estate agents believe that stamp duty changes may have suppressed the very highest prices.
While the number of million pound houses on the market increased during the first half of this year, there was also a decline in the average price of upmarket properties.
From the beginning to January to the end of June, a total of 6,684 homes worth at least £1 million were on sale, compared to 5,946 during the same period in 2015.
Every single area with the highest number of million pound houses for sale is in London. (Source: Lloyds Bank Report)
The twelve percent increase included 10 sales in Harrogate, 29 in Cheshire East, 31 in Trafford.
However, the vast majority of £1m+ homes on the market were in London. Westminster had 8% of all the one-million-pound-plus homes on the market – Kensington and Chelsea also reported 8%.
Stratford-upon-Avon sold more £1m+ homes than the whole of Wales did in the first half of this year – 16 and 13 respectively.
Scotland was the only region in the UK to report a decline – the total number of million pound houses sold fell by one third.
According to research carried out by Lloyds Bank, the average £1m+ home is now worth £1,727,327, which is less than the £1,862,578 estimate for the January-to-June period in 2014.
This tiny, two-bedroom flat in Britten Street, London SW3 costs more than one million pounds today. In 1980, it would have cost £70,000 at the most. The number of adults who live with their parents in the UK because they cannot afford to get onto the property ladder is currently breaking records. (Image: millionplus.com)
Stamp duty on million pound houses
While the new stamp duties that came into force in 2014 made purchasing property cheaper for 98% of all buyers, at the top end of the market the effect was the opposite. Any home selling for more than £937,500 had extra stamp duty slapped on.
In 2015, there were three Million Pound Towns, now there is only one – Virginia Water. Beaconsfield and Cobham fell off the list this year.
In Virginia Water, a town bordering Windsor Great Park, the average price of a home stands at £1,082,282.
Sarah Deaves, Lloyds Bank Private Banking Director said:
“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 £1m, 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.”