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Growth in sales of £1m-plus homes

Joanna Faith
Written By:
Joanna Faith

More mansions have been sold in the UK this year, but their prices have fallen over the last 12 months.

The number of million pound house sales in Great Britain rose by 12% to 6,684 in the first half of 2016 compared to the same period last year, according to Lloyds Bank.

But there has still been an enormous slowdown in growth of in million pound sales in the last two years, which over the past five and 10 years increased by 88% and 162% respectively.

Despite the growth in the number of sales of million pound houses during the last year, their average price has dropped for two years running, from £1,862,578 (in the first half of 2014) to £1,727,327 (in the first half of this year) – a fall of 7%.

Britain’s only million pound town

In the first half of 2015 there were three ‘million pound towns’ in Britain – where the average price of all sales is over £1m: Virginia Water, Cobham and Beaconsfield.

The recent fall in the average price of homes sold for more than a million pounds has left Virginia Water in Runnymede, as Britain’s only ‘million pound town’. The average price in Britain’s most expensive town outside London is £1,082,286.

All regions, with the exception of Scotland, saw sales of million pound houses increase between 2015 and 2016.  The largest increase was in the North East of England with a rise of 83%, from six sales in the first half of 2015 to 11 in the first half of 2016. In Scotland, sales of £1m houses fell by a third, from 120 to 81.

Sarah Deaves, private banking director at Lloyds Bank, said: “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. 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.”