Property News

Millionaire homes on the up - 09/05/2006

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The number of properties valued at £1 million or more being sold in England and Wales increased by 57.5 per cent during the first three months of 2006 compared with the same time last year, says the Land Registry.

A quarterly report shows that 1,032 properties were sold between January and March of this year compared with 655 in 2005.

Of these properties, 652 were located in Greater London, showing a year-on-year increase of 62.2 per cent.

These figures tie in with an overall increase in house prices across the country for the same period as shown in the report and in data from Halifax for April.

But the market is expected to ease in the near future, commented Martin Ellis, chief economist at Halifax.

"Whilst the market may remain relatively buoyant over the coming few months, we expect the recent softening in the labour market and the continuing high level of house prices in relation to earnings to curb demand.

"Alongside higher utility and council tax bills, these factors should lead house price growth to moderate in the second half of 2006."

The increase in house prices follows data that suggests the average price of a terraced house in the capital has now surpassed the £1 million mark.

Underscoring the sustained growth of the sector, the Council of Mortgage Lenders recently predicted that the total value of borrowing through mortgages is set to hit £1 trillion this month and stated that housing equity now makes up the biggest proportion of Britain's personal wealth.

© Adfero

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