subject: Million Pound Homes Sales Weaken To Three Year Low [print this page]
There were 3043 million pound property sales in Great Britain in the first half of 2012; the smallest total since the first half of 2009 (1376) and 11% lower than in the same period in 2011 (3413).
Sales of million pound homes account for a minor part of the national housing market, representing just 1.0% of total sales in the first six months of 2012. Even in London, million pound sales account for only 5.2% of all sales. Lloyds TSB estimates that there are around 166,0001 homes in Great Britain worth at least one million pounds.
Million pound property sales underperforms the wider housing market
The 11% decline in million pound home sales in the first half of the year was in contrast to the 3% market-wide rise in property sales over the period. This is a reversal of the trend in 2011 when sales of million pound properties (11%), significantly outperformed the rest of the market (-8%).
The decline in million pound sales in London - a 151 decrease (-7%) from 2,185 in the first half of 2011 to 2,034 in the same period this year - accounted for almost half (41%) of the national decline. Despite this, over two-thirds (67%) of all million pound sales in Great Britain in the first half of 2012 were in the capital. Scotland accounted for the highest proportion of million sales (1.7%) outside southern England.
Sales of homes worth at least two million pounds also fall...
There were 670 sales of properties costing at least two million pounds in the first half of 2012; a fall of 10% on the same period in 2011 (744). This was the first annual fall since 2009.
...but sales of homes worth over five million pounds continue to grow
In contrast to the rest of the million pound sector of the property market, the number of five million pound plus property sales continued to increase, rising by 5% to 81 in the first six months of 2012. This was the third successive annual increase.
Suren Thiru, Lloyds TSB Housing Economist, said: "The number of homes sold for over 1million has fallen significantly over the past year, reversing the increases recorded over recent years. This partly reflects the changing market conditions for those looking to buy such properties including the 40% 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."
