What's happening in the premium property market? - Edition 1
The number of homes selling for £1 million or more across England and Wales has risen by 93% in the last decade.
In fact, 79% of local authorities saw at least one £1 million sale in 2022, set against 52% in 2012.
2.4% of all homes in Great Britain are valued at more than £1 million and this is an estimated 7300,000 residential properties in total.
To put that into context, it's around 1 in 42 homes.
Properties going up for sale in the premium market have increased by 10.12% so far this year when compared with the same period last year and 35.37% up on the figures of 2021.
A total of £114,180,542,320 worth of property had hit the market by the end of August.
Why are People Selling more Million Pound Properties?
Research from Twentyci and View My Chain found that over 50% of all £1million plus property purchases were actually upsizing into the greater than £1million band.
Whereas 33% of transactions involved downsizers moving out of the £1million plus band and 17% moved from one £1million plus property into another one.
Why is this important to know?
Zoopla is expecting a 21% decline in property sales by the end of 2023 due to a 28% drop in the number of mortgaged buyers.
However, cash sales are predicted to fall by just 1% compared to 2022 and this is an interesting read when considering 71% of properties sold in Prime Central London this year have been bought in cash.
This compares to 35% of cash purchases in the UK property market as a whole over the first seven months of the year.
If transaction levels are going to drop by 21%, the value of properties sold and associated fees may need to increase to compensate for the shortfall.
What if I told you there has been £21,685,123,559 worth of property complete in the premium market already this year according to the land registry
This presents an opportunity for success in a low-volume market, where strategic targeting of higher-end properties can yield positive results.
The opportunity ahead
According to Spectre, 46% of properties that withdraw from the market will come back on within two years.
Already this year, 29,044 properties have withdrawn from the premium market at a total value of £66,605,552,336.
To tap into this opportunity, consider using the main image from previous listings as the lead photo on a letter or postcard.
Address the homeowner directly using their property address and ask if they still wish to sell.
This personalised approach has proven effective in generating responses from potential sellers.
Give it a go and see how you get on.
The UK premium property market continues to grow, offering opportunities for those who can adapt to changing market conditions and employ creative strategies to connect with potential sellers.
In the ever-evolving landscape of the UK premium property market, the numbers tell a story of growth, adaptation, and opportunity.
With an increasing number of million-pound properties on the market, it's clear that there's room for success for those who can navigate this end of the market.
As we look ahead, it's essential to keep a close eye on these trends, adjust strategies accordingly, and explore innovative ways to connect with potential buyers and sellers in this market.
Remember, every withdrawn property may be an untapped opportunity waiting to be realised.
So, take action, stay agile, and unlock the potential of the UK premium property market.
Your next success story could be just around the corner.
Thank you for reading.
Simon Gates
