Number of million-pound properties being sold has ‘fallen significantly’

| November 3, 2012 | 0 Comments

By
Harry Glass

10:19 EST, 3 November 2012


|

10:19 EST, 3 November 2012

Fewer million-pound homes were sold in the first half of the year than there have been for three years, according to new research by Lloyds TSB.

There were 3,043 million-pound property sales in Britain, the smallest total since the same period in 2009 – although well above the level then(1,376).

But it has fallen 11 per cent lower than the first six months in 2011 (3,413).

Sales of million pound homes account for a minor part of the whole housing market, representing just 1.0 per cent of total sales in the first six months of 2012.

Rich pickings: Lloyds estimates that in total there are around 166,000 homes in Britain worth upwards of £1million

Rich pickings: Lloyds estimates that in total there are around 166,000 homes in Britain worth upwards of £1million

Even in London, million-pound sales account for only 5.2 per cent of all sales.

More than two-thirds (67 per cent) of
all million-pound sales were in the capital, so the decline in sales
there – by 151 (7 per cent) to 2,034 properties – accounted for almost
half (41 per cent) of the national decline.

Suren Thiru, Lloyds TSB Housing Economist, said: ‘The number of homes sold for over £1million has fallen significantly.

‘This partly reflects the changing
market conditions for those looking to buy such properties including the
40 per cent increase in the stamp duty rate for multi-million pound
homes.

‘However, there does remain a certain
amount of strength at the very top end of the housing market with sales
of homes worth more than £5million continuing to outstrip the rest of
the market with the very top end of London property market still seen as
a ‘safe haven’ by investors.’

Lloyds TSB estimates that in total there are around 166,000 homes in Britain worth at least that much money.

Scotland accounted for the highest proportion of sales (1.7 per cent) outside southern England.

There were 670 sales of properties
costing upwards of £2million, a fall of 10 per cent. This was the first
annual fall since 2009.

In contrast, the number of
£5million-plus property sales continued to increase, rising by 5 per
cent to 81 in the first six months of 2012 – the third successive annual
increase.

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