October 4, 2022

79% of areas see a £1m+ property bought

Analysis from London lettings and property agent, Benham and Reeves, has discovered that the variety of houses promoting for £1m or extra throughout England and Wales has elevated by 93% within the final decade, with 79% of native authorities seeing not less than one £1m sale to date in 2022, versus 52% throughout the identical time interval in 2012.

Benham and Reeves analysed bought value data from the Land Registry for gross sales at, or over, the £1m threshold to date this yr (January to June – newest out there). Additionally they in contrast this £1m market exercise to the identical timeframe in 2012, to see how the market has modified within the final 10 years.

£1m market exercise

The analysis reveals that to date this yr, 6,732 property purchases have been accomplished with a price ticket of £1m or extra. This can be a 93% enhance when in comparison with 2012.

By way of sheer quantity, London stays the nation’s £1m market hotspot, with 3,342 million pound gross sales to date in 2022. The South East is the one different area to see this complete exceed the 1,000 mark.

Nonetheless, by way of the most important enhance in £1m purchases within the final decade, the North East ranks prime. Regardless of being probably the most inexpensive area, 525% extra £1m property gross sales have taken place to date this yr versus a decade in the past.

Wales has seen a 420% enhance, with the West Midlands (338%), North West (313%) and South West (300%) additionally having fun with a rise of 300% of extra.

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At native authority stage, there has now been a sale for £1m or extra in 79% of areas in England and Wales, up 27% from the 52% of areas in 2012.

£1m bought costs

Whereas the amount of £1m+ gross sales has elevated within the final 10 years, the analysis by Benham and Reeves reveals that the common bought value has dropped barely. In 2012, the common bought value for houses bought for £1m or extra was £1.425m, in the present day it sits at £1.35m – a drop of -5%.

Simply the North East (+6%), the South West, North West and West Midlands (+5%) have bucked this topline pattern, whereas within the East of England, the common value paid has remained static.

Whole market worth

Regardless of this alteration within the common value paid for a £1m+ property, the sharp uplift in transaction quantity has boosted the whole worth of £1m+ market significantly. A decade in the past, £1m+ transactions generated simply shy of £6.5bn through the first six months of 2012. Thus far this yr, this complete sits at virtually £11.3bn – a 75% leap.

Director of Benham and Reeves, Marc von Grundherr, commented: “The upper finish of the property market hasn’t been inclined to the identical drastic ranges of home value appreciation seen throughout cheaper price thresholds lately, because it merely isn’t pushed by the identical excessive quantity of houses altering arms.

Nonetheless, what we have now seen is that top charges of home value appreciation are tipping many houses, in lots of areas, over the a million pound threshold.

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A decade in the past, a house was bought for a million kilos or extra in simply over half of native authorities in England and Wales. Thus far this yr, 79% of areas have seen a house bought at this value or above and this actually demonstrates simply how a lot the market has modified.”