New house price data released by Lloyds Bank has shown a regional divide across the county in sales of prime property, with Lincolnshire and the East Midlands doing very well.
According to Lloyds data, the sale of property priced at over a million pounds in London has seen a decline of 8%, a trend that that the East Midlands is countering with more southern buyers considering our more affordable and therefore attractive properties.
Lloyds revealed that there was a 67% increase prime sales in the East Midlands.
The picture was less positive in other areas of the country. The biggest drop was in the North East, which saw a 38% fall in the sale of million pound plus homes (from 13 in the first half of 2017 to 8 in the first half of 2018).
Yorkshire and the Humber also saw a decrease in the sale of million pound plus homes with a 27% drop, from 55 in the first half of 2017 to 40 in the first half of 2018. The region also experienced a significant decrease in average property prices, with average prices falling from £1,452,252 to £1,367,672.
The sale of million pound plus homes in London continued to decline, down 8% from 3,940 homes in the first half of 2017 to 3,628 in the first half of 2018.
Changes to Stamp Duty on second homes, introduced in 2016, are a likely contributing factor to this decline. Sales in London were at their peak at 4,371 in the first half of 2014, dropping to 4,238 in the first half of 2016 and then continuing to decline in subsequent years.
James Ward, Partner at Mount & Minster comments, “Yet again, our area is coming under the watchful eye of more savvy buyers who realise that there are certain areas in which people can enquire a good sized property with land for very little money compared to down south. Our transport connections at Newark and Grantham drive not only commuters, but those who only need to be in the Capital once every couple of weeks or so. The amount of applicants seeking something special between £1m and £2m has increased significantly and currently the lack of stock available to such a buyer allows many of our clients to sell for a premium due to a lack of supply and high demand.”