The Rise Of The Million Pound Towns

13 November 2015

The Telegraph has reported that there has been an increase in towns boasting million-pound homes, in a recent article. A report published by Lloyd’s Bank stated that as property prices continue to push upwards in Britain, certain towns have become bestowed with properties that have a million pound price tag attached to them.

Some examples of these towns are in Surrey. A property in Virginia Water, which vaunts views over a lake, has amounted to a typical £1.16 million, while in Cobham, another town in Surrey, buyers will be charged £1.04 million for a home. This has endowed the town of Cobham with the title of being Britain’s second most expensive town, after Kensington and Chelsea in London takes the top spot. Another example of a million-pound town is Beaconsfield. The town, which sits on the edge of the Chiltern Hills in Buckinghamshire, has properties that will cost a buyer over £1 million.

The article goes on to mention that a record of nearly 5,600 million-pound property sales took place in the first 6 months of this year, and of that number 1 in 10 were bought in the London borough of Kensington and Chelsea, with 9% taking place in Westminster. Around two-thirds of all million-pound home sales of the first half of this year were in London. The capital has become one of the most expensive places in Europe, and it also contains the highest proportion of property management companies anywhere else in the UK.

In more statistical reports, the article recounts that there were 8 times as many million-pound-plus homes sold in St Albans in Hertfordshire as there were in Wales in the first 6 months of this year. In St Albans, 73 sales of these homes took place, which is significantly higher than the 9 sales that occurred in Wales. Also, in Scotland, 111 sales of these properties happened in the period from January to June this year as well, compared to 146 sales that took place in Elmbridge in Surrey and 159 sales that occurred in Barnet in London.

Sarah Deaves, a private banking director at Lloyd’s Bank, stated: ”Whilst there are several London neighbourhoods where prices are already at this elevated level, outside of the capital this is a first.” As the property boom shows no sign of stopping any time soon, more and more homes will be increasing in price, and the UK is currently experiencing a surge in properties valued at the £1 million mark more than there was a decade ago. There is no mention of a direct cause of this price hike, but the effects could be from inflation of properties increasing, new Government laws and taxes on the housing market and even a rise of millionaires residing in the UK.