What's happening in the UK premium property market?
The property market is a hot topic at the moment, with doom and gloom news stories that are always sure to get high reader figures. But what is really happening in the property market? We asked property expert Simon Gates for his thoughts.
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, 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
The UK premium property market continues to grow, offering opportunities for sellers.
The numbers tell a story of growth, adaptation, and opportunity in the ever-evolving landscape of the UK premium property market.
Written by Simon Gates
