Bank of Scotland

Million pound homes sales weaken to two year low

03 November 2012

The number of home sales worth at least a million pounds has declined to its lowest level since 2010, according to new research by Bank of Scotland. There were 51 million pound property sales in Scotland in the first half of 2012; the smallest total since the first half of 2010 (49) and 15% lower than in the same period in 2011 (60). Across Great Britain, million pound property sales have fallen by 11% over the past year.

Million pound sales continue to account for a minor part of the Scottish housing market, representing just 0.2% of total sales in the first half of the year. Million pound sales account for only 1.0% of all sales in Great Britain.

Bank of Scotland estimates that there are around 2,523 homes in Scotland worth at least one million pounds.

Million pound property sales underperforms the wider housing market
The 15% decline in Scottish million pound home sales in the first half of the year was in contrast to the 9% market-wide rise in property sales over the period. This is a reversal of the trend in 2011 when sales of million pound properties (22%), significantly outperformed the rest of the market (-12%).

Scotland sees the seventh smallest drop in million pound sales
In the first half of 2012, Scotland recorded the seventh smallest percentage fall in million pound sales in Great Britain. The North East of England saw the biggest decline (-69%), followed by Wales (-67%). Scotland also accounted for the highest proportion of million sales (1.7%) outside southern England.

Nearly half of all Scottish million pound property sales were in Edinburgh
Of all the million pound homes sold in Scotland in the first six months of 2012, 43% were in Edinburgh (22). Across Great Britain, Edinburgh also saw the highest number of million pound property sales outside southern England. Of the 32 local authority districts in Scotland, 53% saw at least one sale of over a million pounds in the same period. Across, Great Britain, a quarter of all million pound homes sold in the first six months of 2012 were in the London local authority districts of Kensington & Chelsea and Westminster.

Nitesh Patel, Bank of Scotland Housing Economist, said:
"The number of homes sold for over £1 million has fallen over the past year, partly reflecting the changing market conditions for those looking to buy such properties. However, despite this, demand from wealthy cash rich buyers both in Scotland and further afield plus the limited supply of such homes, is likely to help support activity at the very top end of the property market."

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