Slowdown at top of market
Scotland sees dip in sales of £1m homes
Scotland has seen a sharp dip in sales of £1 million homes against a rise across the UK, according to Lloyds Bank research.
While there was a 12% rise across the whole of the UK in the first half of the year, they fell by a third in Scotland from 120 to 81.
Some have put the fall down to the land and buildings transaction tax, while there has also been a slowdown in the north east because of the decline in the oil industry. Agents say buyers are enjoying a choice of quality properties in leafy areas close to good schools.
The research shows UK sales of million pound homes rose by 12% from 5,946 in the first six months of 2015 to 6,684 in the same period this year.
However, the 6% increase overall between 2014 and 2016 contrasts with growth in million pound sales over the past five and 10 years of 88% and 162% respectively, indicating a significant slowdown over the past two years.
Nonetheless, the prime market has outperformed the rest of the market, with sales of houses under £1 million rising by only 2% between 2015 and 2016.
The average price for houses sold for over £1 million has fallen for two consecutive years, by 7% from £1,862,578 (H1 2014) to £1,727,327 (H1 2016).
In the first half of 2015 there were three ‘million pound towns’ in Britain – where the average price of all sales is over £1m: Virginia Water, Cobham and Beaconsfield.
The recent fall in the average price means that Virginia Water in Runnymede is now Britain’s only million pound town. The average price in Britain’s most expensive town outside London is £1,082,286.