Sales of £1m-plus apartments soar by 196%
The only way is up, as the number of £1m apartment sales nearly trebles, according to Lloyds Bank.
What’s the latest?
The number of £1m apartments sold across England and Wales rocketed by nearly 200% in the last 10 years, from 1,002 in 2006 to last year's 2,967.
London boasts the bulk (96%) of £1m apartment sales – over half (51%) of which have been achieved in the boroughs of Westminster and Kensington & Chelsea, according to Lloyds Bank research.
Why is this happening?
Louise Santaana, head of lending at Lloyds Private Banking, explained: “A finite supply of land in prime central London combined with a growing population has meant the only way is up, with more and more developers focusing on apartments.
“The last decade has seen a large increase in the number of high value apartments being built in Knightsbridge, the West End, Victoria and King’s Cross. Marylebone and Mayfair have been the top two locations for most development.”
She added that, with demand so high, there are more apartments “in the pipeline” in central London.
Who does it affect?
With the number of £1m apartment sales London outpacing all other property types, it is no surprise that Lloyd Bank’s research shows almost a threefold increase in the capital, from 973 in 2006, to 2,853 in 2016.
But where else has experienced a rise? Local authorities outside London recording sales of £1m apartments last year included Poole, Newcastle upon Tyne and Manchester.
Sounds interesting. What’s the background?
Apartments accounted for 22% of all £1m property sales in England and Wales in 2016, compared with 17% a decade earlier.
The South East saw the highest percentage increase of apartment sales in 10 years, with an almost fivefold (398%) rise. There were 44 recorded in 2016, and just nine in 2006. The East of England followed with a 283% increase, while the South West saw a 150% rise.
Apartments accounted for 26% of the increase of all £1m property sales in the decade from 2006 in England and Wales.
Interestingly, Hackney was one of five boroughs in the top 20 local authority districts with the highest increase in million-pound apartment sales over the past decade – particularly as it had no such sales in 2006, the research found.
Westminster apartments are the most expensive, at an average price of £2,215,073 followed by Kensington & Chelsea, at £2,158,151.
Beyond the capital, Bristol and South Oxfordshire boast the most expensive apartments – with both seeing prices reach £1.8m.
Top 3 takeaways
- Exclusive apartments now account for nearly a quarter of all £1m-plus sales
- Nearly 3,000 apartments sold for a seven-figure sum in 2016, up from 1,002 in 2006
- 96% of £1m apartment sales were in London