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More million pound plus properties on the market in the UK, research shows

Collectively, they were worth over £47.76 billion, which equates to £2.24 million per property, according to the research from commissioned by Investec Specialist Private Bank.

Looking at the 10 regions in the UK that have the highest number of million pound plus properties, nine saw an increase in the number of these homes for sale in the second quarter of this year when compared to the same period in 2010.

Both Kent and Hampshire saw increases of 42%.  Only London saw a slight decline of 1%, but the research reveals that 44.5% of the multi-million pound homes on the market during the second quarter of this year were in the capital city.

‘Our research shows just how big the multi million pound property market is in the UK, and that it is growing rapidly.  However, as mortgage lending falls, many of those looking to buy these properties may find it increasingly difficult to secure the necessary funding,’ said Jack Jones of Investec Specialist Private Bank.

Andrew Smith, research director at PrimeLocation.com, whose data was analysed for the research, said that in an environment of restricted mortgage funding, London’s residential market has been partially supported by international buyers, ensuring that £1 million plus properties have continued to sell.  

‘Whilst this research confirms the dominance of London in this sector, it is interesting to see the stock growth being driven by the other counties. The profile of the prime stock outside of London continues to change, with 43% of £1 million plus properties being new to the market in the second quarter. Over the coming months, higher levels of mortgage funding will be vital to keep this market ticking over, especially within £1 million to £3 million price bracket,’ he explained.

Investec Specialist Private Bank offers a £Million Plus mortgage targeted at high net worth professionals who may not get paid along conventional lines, but can accrue irregular income such as lump sum bonuses.  The new custom made mortgage offering takes overall income and wealth into account rather than just the value of an individual’s property and their regular monthly income.

The £Million Plus mortgage is aimed at the top end of the market, with loans available exclusively to individuals looking to borrow a minimum of £1 million with sustainable earnings in excess of £300,000 a year and an established balance sheet in excess of £3 million. Investec Specialist Private Bank says that these individuals typically purchase properties worth in excess of £1.5 million.

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