For the first time on record, more than half of £1m+ residential property transactions are likely to take place outside of Greater London this, according to some research by Private Finance.
The mortgage firm has looked at Land Registry data for England and Wales, which shows a 195% rise in £1m+ deals between 2011 and 2016. Total transactions rose by 54% over the same period, meaning the volume of £1m+ purchases grew nearly four times as fast as the overall market – despite stamp duty costs escalating since 2014. Continuing house price inflation meant that £1m+ transactions still rose 10% between 2015 and 2016.
London has historically been home to the majority of seven-figure deals. In 2011, the capital accounted for 63% of these more high-value property purchases. London also recorded the biggest growth by far (7,333) in the annual volume of £1m+ transactions between 2011 and 2016. Surrey ranked second (818) followed by Hertfordshire (676) in third.
But growth in Greater London’s £1m+ segment was outpaced by six other areas in 2015-16: Hertfordshire, Surrey, Essex, Hampshire and Kent.
Private Finance reckons that, as long as this trend continues, more than half (51%) of £1m+ property transactions will take place outside Greater London in 2017 for the first time on record.
Between 2011 and 2016, the volume of £1m+ residential transactions grew by 4,800% in South Yorkshire, and by 2,600% in County Durham and Swindon. Meanwhile, the biggest percentage increase in £1m+ transactions from 2015-2016 was in Carmarthenshire (1,200%).
Shaun Church, Director at Private Finance: “Sustained house price growth in London means that even for many highly-paid professionals, a large family home in the capital is now out of reach. With buyers looking further afield as a result, this has contributed to significant growth in the number of million pound-plus transactions in areas like Kent, Essex and the Home Counties, which are all within easy commuting distance of London.”