Sales Boom For Million Pound Houses

There has been a boom in the number of sales of houses costing a million pounds or more, according to research by Lloyds TSB.

The number of sales of homes costing more than a million pounds rose at its fastest rate for four years in 2010, Lloyds TSB found in new research.

There were 7,185 million pound property sales in Great Britain in 2010: 54% higher than in 2009. This is the largest annual increase since 2006 and suggests a real resurgence at the very top end of the housing market.

There are now an estimated 184,000 homes in Britain worth at least one million pounds.

The credit crunch, which started in 2008 knocked an average of 43 per cent off the value of houses costing a million pounds or more, however these have now recovered significantly and are now only 13 percent below their peak.

The demand for higher end properties is out performing the property market as a whole, however million pound sales continue to represent a very small proportion of the total market, accounting for just 1% of all sales in Britain in 2010.

Although the sales of these houses is rising fastest in the West Midlands, it is the wealth concentrated in London which is largely driving this market, as Suren Thiru, Lloyds TSB Housing Economist points out:

“A small number of areas in London still account for the lion’s share of all £1 million sales, with housing market activity in such locations continuing to benefit from strong demand from wealthy international buyers and limited supply.”

“In contrast, the level of activity across the wider housing market remains subdued.”

MoneyHighStreet.com Comment: The weak pound is making UK property very attractive for wealthy overseas investors, particularly from booming economies such as China and India. London properties are seen as sound long term investments, by those with considerable sums to invest over the long term.

This trend is likely to continue for some time if the value of the pound remains low.