£1m-plus market shifting away from London
14 Jul 2017
Over half of properties purchased for over £1 million will be sold outside London this year, according to recent research. It found that between 2011 and 2016 there has been a 195 per cent rise in the number of transactions of £1 million-plus homes.
In the last two years, the growth in the sales of such properties in Hertfordshire, Surrey, Essex, Hampshire and Kent has outpaced that of London.
Separate research by Savills found that the average size of a prime home in the capital is 1,389 sq ft, compared to Winchester, 2,187 sq ft. Commenting on the findings Lucian Cook, Head of Residential Research at Savills, said the focus has shifted to the country where buyers get more for their money.
Richard Donnell, head of research at Hometrack, which found the annual rate of house price growth in London was down from 14 per cent in May 2016 to 3.3 per cent in May 2017, adds: “London has 20 per cent of the market which means that 80 per cent of it has room to grow,” he said. “There is more life in the housing market beyond the capital.”
He says the market for more expensive homes “is more buoyant and less affected by changes to stamp duty, as well as less exposed to changes in sentiment due to political and economic uncertainty.
“This is also to do with the rise in prime urban property [outside London], and increasing numbers of the £1 million house you find in more affluent commuter towns. The manor house has become more unfashionable.”
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