The number of multi-million pound houses being sold across the UK spiked last year, but while London is normally the number one hotspot for top-priced pads, bigger growth is now being seen in other parts of the country…
While the capital still holds the monopoly in prime property market activity, with 60% of all £1m-plus sales taking place there in 2017, shifts in the housing market mean that more gains were actually made in the regional markets last year.
In total, 19,100 properties worth £1m or more were sold in England and Wales over the course of 2017, according to HMRC, which is a 6% rise on the previous year. This is despite the high level of stamp duty that is currently paid on such high-end properties – for example, stamp duty between £925,001 and £1.5m is charged at 10%, and 12% over £1.5m, meaning that someone buying a home worth £1m would be liable to pay £43,750 in tax.
Top places for prime property growth
The biggest growth was actually seen in Yorkshire, where there was a 40% rise in the number of million-pound properties sold, followed by the north-west which recorded a 36% increase, and the West Midlands which saw its prime property market grow by 19%. In the north of the country, Cheshire East alone sold more than 100 properties priced at £1m or more over the 12-month period, which is a 38% increase on the previous year.
This strong level of growth indicates a number of things including greater affluence in these areas, growing confidence in the housing market and a rise in demand across these emerging regions.
Oliver Knight of Knight Frank said: “The rise in £1m sales volumes over the past 12 months points to some relatively active prime markets across the country, even with higher rates of stamp duty. And, as our analysis shows, the pick-up in transactions hasn’t taken place in a uniform manner.
“The most notable rises in activity have come in markets outside of London and the traditional ‘commuter zone’.”