Sales of London’s most expensive homes may be cooling, but in two areas they’ve never been higher.

The latest Lloyds house price index has found that while sales of London properties may be down 8%, the number of high-end house sales has soared in Wales and the West Midlands.

In the first half of 2018, there was a 100% increase in the number of million pound plus homes sold in Wales, followed by a 67% increase in the East Midlands, and a 19% rise in the West Midlands.

However, the picture was less positive in other areas of the country with the biggest drop was in the North East, which saw a 38% fall in the sale of million pound plus homes (from 13 in the first half of 2017 to 8 in the first half of 2018). 

Yorkshire and the Humber also saw a decrease in the sale of million pound plus homes with a 27% drop, from 55 in the first half of 2017 to 40 in the first half of 2018.

The region also experienced a significant decrease in property prices, with average prices falling from £1,452,252 to £1,367,672.

The sale of million pound plus homes in London has also continued to decline with Brexit uncertainty putting new investors off.

Sales fell 8% from 3,940 homes in the first half of 2017 to 3,628 in the first half of this year.

The capital’s market share of million pound homes also decreased to 57% from 60% in 2017.

Sales in London were at their peak at 4,371 in the first half of 2014, dropping to 4,238 in the first half of 2016 and then continuing to decline in subsequent years, sparked by changes to Stamp Duty on second homes in 2016.

Despite this, the top six local authority districts with the highest number of million pound plus property sales are still in London.

Sarah Deaves, at Lloyds Bank, said: "The trend of a split across the country in the purchase of million pound plus homes continues, with the capital still experiencing a decline in the number of sales.

"Political uncertainty is likely to be influencing buyers’ decisions about investing in property in the capital, especially in homes at the higher end of the scale.

"London and South East continue to dominate in overall share of high end homes but the Increases in stamp duty and capital gains tax for foreign investors have dampened demand in the capital, with more housing stock now on the market.

"The picture outside London seems to be moving in a different direction, particularly in Wales and the East Midlands. Explanations for this could be that homes outside of the capital are less likely to be used for investment with purchaser buying properties to live in.

"The development of HS2 in addition to commuting links between the capital and Birmingham are also likely to be contributing factors to property investment in this region," Deaves added.

Read More

Housing

Source: Read Full Article