More million pound houses outside of London than ever before

Research provided by mortgage broker Private Finance suggests that over half of properties purchased in the UK for over £1m will be sold outside of London.

This would be the first time this has taken place in British history.

Private Finance’s research, which was based on Land Registry Data, found that between 2011 and 2016 there had been a rise of 195 per cent in the number of houses valued at over £1m.

Over the last two years, sales of over £1m have grown far faster in the likes of Surrey, Essex and Kent than in the capital.

This news comes as the property market in the capital has stalled with the number transactions falling in the city, particularly of homes valued at higher levels.

Figures from Hometrack show that the rate of house price growth in London has slowed from 14 per cent in May 2016 to just 3.3 per cent in May this year.

The research goes on to suggest that, should this trend continue, 51 per cent of homes valued at over £1m will be outside of London this year, rising from just 37 per cent in 2011.

Lucian Cook, head of residential research at Savills, said: “Until 2014, London saw 10 years of very strong house price growth in prime markets and a significant growth in the amount of stock, but that focus has shifted to the country where you get more for your money.”

Richard Donnell, head of research at Hometrack, said that this situation is due to the capital having reached its peak in the housing cycle, while in areas outside it prices are still gaining momentum. “London has 20 per cent of the market which means that 80 per cent of it has room to grow,” he said. “There is more life in the housing market beyond the capital.”

Mr Cook added that in the countryside, the market for more expensive homes “is more buoyant and less affected by changes to stamp duty, as well as less exposed to changes in sentiment due to political and economic uncertainty.

“This is also to do with the rise in prime urban property [outside London], and increasing numbers of the £1m house you find in more affluent commuter towns. The manor house has become more unfashionable,” he added.