Sales of £1 million apartments surge to new high in London

Sales in England and Wales of apartments costing £1 million-plus have almost tripled over the past decade, according to a new report from Lloyds Private Banking.

196 per cent increase

The report says the sales of these properties – the vast bulk of them in London – rose from a total of 1,002 in 2006 to 2,967 in 2016, an increase of 196 per cent.Some 96 per cent of the sold properties were in London and apartments comprised just over a third of all million pound-plus homes sold in the capital last year. Sales of such flats have grown far faster than the pace of £1 million-plus detached homes (up 88 per cent), semi-detached ones (up 154 per cent) and terrace houses (up 165 per cent) over the decade.Prime apartment sales in London increased 193 per cent over the decade: from 973 in 2006 to 2,853 in 2016, with Kensington and Chelsea seeing the greatest increase in sales, rising from 357 in 2006 to 731 last year.

The only way is up

Louise Santaana, head of lending at Lloyds Private Banking, said, “London dominates the million-pound flat market, with the prime areas of Westminster and Kensington and Chelsea accounting for over half of all million-pound apartment sales in England and Wales.“A finite supply of land in prime central London combined with a growing population has meant the only way is up, with more and more developers focusing on apartments. In the past decade there has been a large increase in the building of high value apartments in Knightsbridge, West End, Victoria and King's Cross, with Marylebone and Mayfair being the top two locations for most development. With demand still high, there are more in the pipeline.”Publication of the Lloyds report coincided with another from YourMove which showed house price growth in London had continued to slow last month at a time when eight in 10 English and Welsh regions recorded new peaks in average prices.

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Related news:

• UK property market lacking impetus, surveyors report
• UK house prices reach new high, but rate of increase slows
• Halifax index confirms house price slowdown

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Despite last year's surge in prime apartments, YourMove found house price growth in Kensington and Chelsea fell at the sharpest rate in the capital, down 2.6 per cent.The average home price in England and Wales in March rose 0.5 per cent from last month, representing 3.3 per cent year-on-year increase and bringing the national average to £301,278. The West Midlands was the region with the highest annual price growth, at 4.8 per cent.Oliver Blake, managing director of YourMove and Reeds Rains estate agents, said, “In England and Wales, house price inflation continues but at a relatively low, though still positive level. There is little in the short-to-medium term that will disrupt the market greatly, with interest rate increases seemingly on hold, mortgage supply and pricing remaining favourable and consumer confidence strong.”For related news and features, visit our Residential Property section.Access hundreds of global services and suppliers in our Online Directory  Get access to our free Global Mobility Toolkit

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