London loosens its grip on high-value real estate market as house prices soar

Soaring house prices over the past year have loosened London’s grip on the high-value real estate market, according to analysis of official data from Search Acumen, the real estate data and information provider .

The residential real estate market has recovered at a sustained pace since the summer of 2020, when the country emerged from the first Covid-19 lockdown, fueled by pent-up demand and the holiday from the property tax on property rights. Treasury Treasury stamp (SDLT).

With sales reaching record highs and UK house prices increasing at a rate of 10% per year¹, analysis of Search Acumen data from the HM Land Registry shows that nearly one in five home purchases (19%) in England and Wales is now valued at £ 500,000 or more. This compares to just 11% in 2018.

The £ 1million + property market has also exploded with 3% of sales now reaching this price point, up from 2% in 2018. In total, 15,560 home sales were closed for £ 1million sterling + in England and Wales last year, which equates to 43 per day and topping 2018 and 2019 totals despite the spring shutdown.

The North West (15.2%), Wales (13.3%) and the North East (11.8%) set the tone for regional house price growth in England and the Netherlands. Wales over the past year¹. Over the same period, house prices in London rose 5.2%, the weakest measure of any region.

As a result, Search Acumen has found that more than half of homes bought for £ 1million + are now located outside of Greater London, for the first time on record. The share of capital in this market has increased from 58% in 2018 to 48% so far this year.

Likewise, more than two-thirds (68%) of home purchases over £ 500,000 are now made outside the capital, up from 61% in 2018.

Table 1: Sales of residential properties in England and Wales priced at £ 500,000 + and £ 1m +, 2018 to 2021 YTD

2018 2019 2020 2021 YTD
£ 1m + house purchases Number 15,534 15,338 15,560 4 881
% of all sales for England and Wales 2% 2% 2% 3%
% in Greater London 58% 57% 53% 48%
% outside Greater London 42% 43% 47% 52%
Home purchases £ 500,000 + Number 99 788 98,293 93,865 33 105
% of all sales for England and Wales 11% 12% 14% 19%
% in Greater London 39% 38% 36% 32%
% outside Greater London 61% 62% 64% 68%

Figure 1: A growing share of home sales for £ 500,000 + and £ 1m + now takes place outside Greater London

Rising house prices and the spread of high-value sales across England and Wales mean more diverse parts of the country are now attracting buyers in the £ 500,000 + and £ 1million price range. £ +.

Areas associated with London’s traditional suburban belt, including Surrey, Hertfordshire, Essex and Kent, have seen the highest volume of purchases of over £ 500,000 so far this year. But the areas that have seen the strongest growth since 2018 are spread more widely as far as Ceredigion in Wales, North Lincolnshire, Wrekin in Shropshire and Blackburn with Darwen.

Likewise, while Richmond, Oxford and Leatherhead recorded the most £ 1million buys last year, the areas with the largest increase in sales in that price bracket were more widely distributed with Falmouth, Christchurch, York and King’s Lynn all appearing in the top ten for growth. since 2018.

Table 2: High-value home buying hotspots in England and Wales, outside of Greater London

Areas with over £ 500,000 in purchases Areas with over £ 1 million in purchases
More activity
2020
Biggest increase
2018-2020 **
More activity
2020
Biggest increase
2018-2020 **
Surrey Ceredigion Richmond Falmouth
Hertfordshire North Lincolnshire Oxford Bedford
Hampshire Wrekin Leather head Kings langley
Essex Blackburn with Darwen Bristol Whitstable
Kent Flintshire Sevenoaks Christchurch
West Sussex Denbighshire Twickenham York
Buckinghamshire Pembrokeshire Guildford Warlingham
Oxfordshire County Durham Poole Dartmouth
Devon Isle of Wight Reading Uxbridge
Gloucestershire Halton Esher King’s lynn

* Areas listed by sales volume (highest first)

** Areas listed by% increase in sales volumes (highest first, excludes areas with less than 10 sales per year at this price point)

Andy Sommerville, Director of Search Acumen, says:

‘These numbers may not show the kind of leveling the government has in mind, but they do suggest that the housing market is being reshaped by recent political and economic events, including Brexit alongside Covid. -19, and policy responses such as stamp duty holidays. London’s monopoly on higher-value homes has ended, and law firms across the country will find themselves facing increasingly high-stakes deals.

“It is becoming increasingly common for buyers to part with large sums to move up the real estate ladder, with nearly one in five homes priced at £ 500,000 or more. But despite all of these investments, the home buying process is still stubbornly stuck in the past, with high prices accompanied by the same stress, angst, and uncertainty that have plagued the market for years.

“With the rising sums at stake, it is woefully insufficient that transactions can still be on hold for weeks or even months after an offer is accepted, while law firms wait for information to complete.” due diligence. Paper-based processes have long passed their welcome, and the digital trend during the pandemic is expected to accelerate the use of real-time data to deliver a more seamless, efficient and ultimately more rewarding experience. “

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