How Times Have Changed
Emerging seven figure markets?
The million plus market spread further in 2014
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2014 was a record year for £1millon plus sales, 14,000 homes worth a total of £26 billion traded hands for £1million or more. That’s a third up on the 11,000 sales in the £1million plus price bracket in 2013 and two thirds more than the 8,900 in 2007.
Growing prices, particularly in London and the South East have put more homes than ever into seven figure territory in 2014. The growth of transactions above £1million in local markets points us to emerging and growing prime areas. In 2014 there were 16 local markets in particular that saw £1million plus markets emerging. Those that saw an increase from just one sale above a million pounds in 2013 to five or more in 2014.
There are three distinct groups on the list. Areas on the fringes of Inner London that are currently on the up, there aren’t many areas like this without £1million plus markets already, so New Cross and Bethnal Green stand out. Markets in Outer London boroughs, some less established, such as Brentford, Harrow and Edgeware which are benefitting om a flow of demand from more expensive central areas. And towns in the commuter belt, currently seeing an influx of London leavers, cashing in on prices in the capital while making life stage moves.
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The only area on the list outside of London or the commuter belt is Sudbury, in Suffolk. Sudbury is benefitting from a mix of spill over from Cambridge, and the seemingly constant advance of London leavers looking further afield to get more for their money. Sudbury’s stock of classic Georgian buildings seems to be proving particularly popular with incoming buyers.
While the upcoming election and the threat of a mansion tax makes it difficult to chart the path of the more expensive £2million plus markets over the rest of 2015, it is likely that we’ll see the emerging £1million plus areas continuing to grow. House prices are forecast to rise in 2015, albeit at a slower pace of 4%, and we expect the tide of London leavers to continue to push demand into prime markets across the rest of the country. The result will likely be more areas outside of the traditional London commuter belt, like Sudbury, making an appearance in next year’s list.