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High Value Property
A new report has shown that the number of homes costing over £1million has fallen for the first time in 2 years. The report released this week by Lloyds TSB shows the sales of such homes fell 5% to 6,911 last year, having risen by 55% in 2010. This triggered price falls on such properties in 11 regions according to the report.
Lloyds TSB said the fall reflected "the general weakness in activity across most of the housing market", which has been hit by the weak economy and relatively low levels of bank lending. Sales of houses overall fell 4pc last year to 698,200.
However, the report has been interpreted as reflecting problems with home-owners climbing the ladder, rather than a change in sentiment among the super-rich, not least because sales of houses worth at least £2m rose 5pc to 1,518 in 2011, more than at any time since records began in 1995, although as you'd expect such sales were concentrated mainly in London.
"The rise in the number of multi-million pound property sales compares with the weakening picture across the rest of the market," said Suren Thiru, Lloyds TSB economist. "Continued demand from wealthy cash rich buyers, both from the UK and overseas, as well as limited supply has meant that this segment of the market remains largely immune from the headwinds facing the vast majority of home buyers."
According to the report, the biggest drop in £1m home sales was a 35% fall in the West Midlands. Ironically the north east and east Midlands were the only places to see home sales in the bracket rise, but of course, as the report points out, this is from a very low starting point.
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