Million pound apartment sales up 200% in 10 years
In 2006 there were 1,002 million pound apartment sales in England and Wales but in 2016, this figure jumped to 2,967 – a 196% increase.
Flats seem to be the home of choice as the sale of these types of properties far outpaced others with terraces increasing by 165%, followed by semi-detached properties up 154% and detached houses by 88%.
According to research by Lloyds Private Banking, apartments represented 22% of all million pound property sales in England and Wales in 2016, compared to 17% in 2006.
And London leads the way with 96% of sales in million pound apartments. In the capital, this figure has risen from 973 in 2006 to 2,853 in 2016.
Kensington and Chelsea saw the largest number of transactions of £1m apartments rising from 357 to 731 in the decade and Westminster followed with an increase from 412 to 781.
Hackney in North-East London had no sales of million pound flats in 2006 but a decade on, recorded 47.
The South-East had the highest percentage increase in apartment sales in the past decade from nine in 2006 to 44 in 2016.
The East of England saw a rise of 283% while in third place came the South West with 150%
According to Lloyds, the only other regions to record sales of million pound apartments in 2016 were the North East and North West, both with just one sale.
Other local authorities outside London with £1m apartment sales in 2016 were Poole (15), Newcastle upon Tyne (1) and Manchester (1).
Louise Santaana, head of lending at Lloyds Private Banking, said: “The past decade has seen substantial increases in the number of million pound apartments sold, outpacing all other property types.
“A finite supply of land in prime Central London combined with a growing population has meant the only way is up with more and more developers focusing on apartments. In the past decade there has been a large increase in the building of high value apartments in Knightsbridge, West End, Victoria and King’s Cross, while Marylebone and Mayfair being the top two locations for most development. With demand still high there are more in the pipeline.”
“Outside London, the South-East, South-West and East of England have seen between two and a half and fivefold growth in the numbers of million pound apartment transactions, but still only account for three percent of the market.”