Study: £1m home sales down in 2012

by Sarah Ashcroft

Significantly fewer homes with values of £1 million or above were sold in the UK during the first half of 2012, a new study has revealed.

Research published over the weekend (November 3rd) by Lloyds TSB has revealed that the number of sales of properties for seven figures declined to its lowest level since the opening six months of 2009.

According to this survey, some 3,043 houses worth a minimum of £1 million were sold between January and June this year - a figure that made up just one per cent of the total number of transactions throughout this period.

This figure also represents a decline of 11 per cent on the 3,413 seven-figure sales seen across the UK in the corresponding six-month timeframe last year and offers a stark contrast to the market-wide three per cent rise in general property sales in the early months of 2012.

Lloyds TSB has attributed this trend primarily to the uncharacteristic dip in high-cost sales seen in London in the first half of the year, as there was a seven per cent decline to a total of 2,034 in the capital when compared to the same period in 2011.

Nevertheless, more than two-thirds (67 per cent) of such transactions still took place in London, with Scotland accounting for the highest proportion of these sales outside of southern England.

In addition, the number of transactions involving properties with a value of more than £2 million dropped by ten per cent in the opening six months of 2012 when looked at against the start of 2011.

Suren Thiru, housing economist at Lloyds TSB, commented: "This partly reflects the changing market conditions for those looking to buy such properties including the 40 per cent increase in the stamp duty rate for multi-million-pound homes."

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Published on: November 5, 2012

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