Luxury home sales hit new high as rest of market falters

Luxury home sales hit new high as rest of market falters

16:35 PM, 26th April 2012, About 12 years ago

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Sales of homes worth £2 million or more are rising – and most are in just four upmarket neighbourhoods of London.

Just over half of all multimillion pound home sales last year were in swish Kensington, Chelsea, Westminster or Camden, while 76% (1,161) of £2 million plus sales were in London.

Altogether, 1,518 homes valued at more than £2 million were sold in the UK according to Land Registry data analysed by Lloyds Bank – a rise of 5% on 2010.

These were the highest recorded sales figures for £2 million-plus homes since records started in 1995.

Also, the number of properties selling for more than £5 million were up 22% from 128 in 2010 to 156 in 2011.

However £1 million home sales did not fare so well, with a 5% fall to 6,911 properties after a 55% surge in 2010 to 7,526 homes sold.

Researchers estimate around 165,000 homes in the UK are worth £1 million or more – with just 38,000 topping the £2 million threshold.

The rise in multi-million pound property sales contrasted to the fall in sales across the rest of the market. While more expensive homes changed hands, total home sales fell by 4% from 728,550 in 2010 to 698,200 in 2011.

Suren Thiru, Lloyds TSB Housing Economist, said: “The rise in the number of multi-million pound property sales over the past year compares to the weakening picture across the rest of the market, highlighting the strength at the very top end of the housing market.

“Continued demand from wealthy cash rich buyers, both from the UK and overseas, as well as limited supply has meant that this segment of the market remains largely immune from the headwinds facing the vast majority of homebuyers.”

Other multi-million property hotspots outside London and the South East are St Alban’s (73 sales), Edinburgh (61) and Poole, Dorset (38).

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