While there are many different viewpoints surrounding the UK property market, it makes sense to look at the longer-term picture before coming to conclusions. There are too many factors impacting on the short-term changes to state anything with significant confidence. This year, you only must think back to March and the terrible weather conditions to understand how some issues can have an enormous impact on the buying, selling and even the development of property.
When you consider the longer-term changes of the market, it is fair to say that the demand for million-pound homes and high-end property development is on the rise. In the past decade, the volume of million-pound properties in the United Kingdom has risen by 73%. While it is understandable that many people will believe that this is taking place in London and the south east of England, this is not solely the case. There are regions in the north of England which have experienced growth which has been classed as “exceptional” this year.
Short term figures are rising for high end property too
If you would prefer to consider the short-term time-frame, you will find that the market for properties valued at least £1m has increased by 5% compared to the demand from the previous year. This is taken from house price data compiled by Lloyds Bank Private Banking, so it should provide a reasonable insight into the market.
Some of the areas that have increased significantly in the past year may take you by surprise. In Yorkshire and The Humber, there was an increase of 60% for properties being sold for more than £1m in 2017 compared to 2016. In the North West, there was a market increase by 46%, so there are areas outside of the capital and the South East that are performing well.
East Midlands was the only faller in the market
In West Midlands, the increase in property sales of one million more for 2017 was 28% but in the East Midlands, there was a fall. The number of one million-pound properties selling for at least one million fell by 23% and this was the only region in the country where the level of sales for this market fell.
With respect to the 10-year figures, there was a dip in 2012. That was a challenging year for property sales. There was also a struggle in the opening half of 2017, with a 1% fall in the sale of million-pound homes. However, the market rallied for the second half of the year.
Louise Santaana, is the Head of UK Wealth Lending for Lloyds Bank Group, and she released a statement saying; “Overall, 2017 was slow for the UK economy, with high inflation and low wage growth. But high end homeowners and investors in many parts of Great Britain are starting to regain their confidence in the market, with exceptional growth seen in Yorkshire & Humber and the North West of England.”
When it comes to high-end properties in the UK, there is plenty to remain optimistic about.