Million pound homes report fall in sales

Million pound homes worth over £1m being sold across Britain have reported a 5% fall in 2011 according to a report by Lloyds TSB. However, houses worth £2m and over have shot up 5%, the biggest increase in this price range since the start of records in 1995.

The report highlights that whilst most ordinary Britons are struggling on the housing ladder- burdened with wages which have slow growth and the ever increasing cost of living- the super-rich are still able to afford expensive housing and have no problems on the housing ladder. Overall, there was a 4% decrease in the sale of houses across the whole country.

Differrent regions of the UK varied with sales. The West Midlands has the biggest drop with 35% fewer sales. The only regions with increases included the East Midlands, the North East and Wales. The cause of these poor figures are most likely due the weakness in the current economy and lack of lacking by banks which then has a domino effect on the housing market.

The £2m+ home sales were mainly bought in London from ‘cash rich’ buyers both from wealthy foreigners and UK property-savvy individuals. Lloyds TSB economist Suren Thiru states that this part of the housing market is unlikely to affect ordinary homebuyers.

Image: flickr/msk13