Scotland is the only part of the UK to see million pound home sales fall this year.
New research by the Bank of Scotland shows that the number of million pound house sales in Scotland in the first half of 2016 was a third lower than in the first six months of 2015.
The decrease in sales is in contrast to the 12 per cent increase seen across the whole of Great Britain for the same period. Indeed, over 90 per cent of million pound sales are in London, South East and East of England, illustrating the gulf that exists between each region’s housing market.
Only three Local Authority Districts in Scotland saw an increase in sales during H1 2015 to H1 2016 – Stirling (4), Fife (1) and Moray (1). Although Edinburgh had by far the highest number of million pound home sales in Scotland during H1 of 2016 – 50 sales, equating to 62 per cent of all Scottish million pound sales – this is still 17 per cent lower than H1 2015.
The news is not all bad, though, as Scotland’s overall market remains active.
“Although we had a dip in prime market sales, Scotland did see the highest rise in sales across all properties, recording a 9 per cent rise compared to a 2 per cent increase in Great Britain as a whole,” comments Graham Blair, Mortgage Director at Bank of Scotland.
Number of million pound properties to triple by 2030
18th February 2016
The number of million pound properties is forecast to increase by more than three times by 2030.
Today, less than half a million homes in the UK are valued at £1 million or more, but new research from Santander Mortgages predicts this will rise to over 1.6 million in the next 15 years.
Working in partnership with economist and LSE Professor of Economic Geography Paul Cheshire, Santander looked at the future of the UK property market with a forward focus on the prime market.
While 7 per cent of homes in the South East are expected to fetch £1 million+ by 2030, fewer than 1 per cent in the North East, Yorkshire and Humber, North West, Scotland and the East Midlands are expected to do the same, highlighting a stark geographical divide. Indeed, in London alone, one in four homes are expected to be valued at more than £1 million.
Overall, the average UK property price, which currently stands at £283,5652, is expected to increase 23 per cent by 2020 to £349,3000. 15 years from now, the average UK property price will have almost doubled (97 per cent increase), surpassing the half a million pound mark at £557,444.
While property prices are expected to soar, predictions suggest that incomes will not keep pace, resulting in an overall decline in affordability. At present in the UK, the average property price is 7.9 times the average income, but by 2030, this is expected to hit a multiple of 9.7. Again, this trend is elevated in London, where prices are currently 11.5 times incomes and predicted to rise to 16.5 by 2030.
“The current property market is buoyant and the deals available to new and existing owners are extremely competitive, so those wishing to buy or move shouldn’t be put off,” says Miguel Sard, Managing Director of Mortgages at the lender.Google+