Mortgages  

Cooling market for £1m houses in first half of 2015

Cooling market for £1m houses in first half of 2015

The first half of 2015 has seen the number of million-pound property sales decline by 11 per cent compared with first half 2014.

This is the first such fall since first half 2012 according to research from Lloyds Bank. However, Lloyds said sales of £1m homes had risen 264 per cent since the first half of 2005.

Sarah Deaves, Private Banking director at Lloyds Bank, said: “The number of homes sold for over £1m has fallen sharply over the past year, with a pronounced slowdown in the prime and Central London market. This may be the effect of the new Stamp Duty rates introduced last December and uncertainty generated by the election in May.”

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The research showed average house prices of more than £1m in Virginia Water, Cobham and Beaconsfield - the first time the average property price has hit £1m outside of London.

Adviser view

Daniel Bailey, mortgage broker for Derbyshire-based Middleton Finance, said: “The £1m average is a ripple-effect spreading from London. The decline in £1m property sales shows the impact of rising costs such as Stamp Duty on those buying at the top end of the scale.”