Property Millionaires spend £63bn on cash purchases

Property Millionaires spend £63bn on cash purchases

The latest analysis from high net worth adviser, Bower Private Clients, has found that over 7,200 £1 million-plus homes are being bought a year without mortgages.

Its research shows more than £63bn has been spent on homes costing more than £1 million in England and Wales over the past five years with the average cash buyer splashing out £1.75 million. Around one in three £1 million-plus property purchases are cash deals.

Nearly two-thirds of the £1 million-plus cash buyers bought in London with the average spent per property hitting £1.89 million – but the South East, East and South West also saw high numbers of millionaire cash buyers.

More than 110,000 £1 million-plus homes have been bought in the past five years across England and Wales with a total of £192.7bn spent – around 67% were partially funded by mortgages.

Bower Private Clients www.bowerprivateclients.co.uk believes the surge in million-plus cash sales underlines the need for more specialist advice and bespoke solutions for retired homeowners who need to maximise their property assets.

It has recruited specialist advisers from private banks and has access to specialist underwriters to help it deliver personalised equity release solutions for customers with the initial focus on London and the South East.

Andrea Rozario, Chief Corporate Officer at Bower Private Clients said: “Property millionaire cash buyers are a growing force in the housing market highlighting the wealth which is concentrated in homes. The wealth tied up in homes is a potential source of retirement funding but people who want to remain in their properties can struggle to access the money via general mortgages which is driving increasing demand for retirement lending solutions.

The continuing squeeze on pension and investment income means some property millionaires may find themselves in a position whereby they have the desirable home which they love but not the level of income or liquid assets they had hoped for. Consideration of how best to maximise what will likely be their biggest asset should include solutions such as a lifetime mortgage.”


The table below shows how £1 million-plus property sales in England and Wales over the past five years breakdown across different areas with London way ahead of the rest of country.

REGION

NUMBER OF £1 MILLION PLUS BOUGHT FOR CASH SINCE 2011

AVERAGE PRICE PAID

London

22,852

£1.896 million

South East

7,864

£1.53 million

East of England

2,377

£1.418 million

South West

1,211

£1.479 million

North West

641

£1.649 million

West Midlands

496

£1.399 million

Yorkshire & Humberside

239

£1.359 million

East Midlands

218

£1.339 million

North East

79

£1.385 million

Wales

52

£1.256 million

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Latest Comments

Spencer Fortag
Spencer Fortag 25 Aug 2016

The funny thing is, I mentioned the brick issue in my blog back in April: http://medwayproperty.blogspot.co.uk/2016/04/the-medway-property-market-and-lack-of.html

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SecomTech
SecomTech 19 Aug 2016

Firstly, I either lodge with DPS or do not take a deposit...secondly, If a tenant has not received a confirmation their deposit is secured with either a scheme or in an insured account with an agent/landlord,...

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jasonevans
jasonevans 19 Aug 2016

Belvoir has over 15 years of experience in property lettings, buying and renting and is one of the best agencies I know about. I have heard that they revived an award for the hard work. Really amazing...

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jasonevans
jasonevans 19 Aug 2016

Usually these areas are least affected when it comes to unexpected economical collapse.

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TheWaspNestRemover
TheWaspNestRemover 11 Aug 2016

You agree to pay for the treatment needed to get rid of fleas, ants, mice, wasps nests and other pests unless you can prove that these are a result of us not meeting our repairing responsibilities or these...

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madisonwelch80
madisonwelch80 02 Aug 2016

16% is quite a raise. Let's hope this tendency won't continue for long.

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madisonwelch80
madisonwelch80 02 Aug 2016

?66,963 is a serious price drop However buying a property it a serious investment only small percentage of the UK population could afford.

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madisonwelch80
madisonwelch80 02 Aug 2016

Wow, it kind of surprised me. I mean counting on mom and dad's bank even after retirement is too much. That's the moment in life when one should have ensured themselves. I am shocked.

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AbbieP.
AbbieP. 22 Jul 2016

"While house prices in the most expensive eleven boroughs have declined values in the cheapest eleven boroughs continue to rise" - not a nice way to even out the price range. London is overrated as it

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AbbieP.
AbbieP. 21 Jul 2016

And try to profit from your decisions, I may add

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CommercialTrust
CommercialTrust 19 Jul 2016

Retirement investment has always been one of the biggest draws of buy to let. And the buy-to-let demographic is, on balance, older. (Over a third of our applicants are over 50 at the time of application.) It...

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Forrest Wheatey
Forrest Wheatey 11 Jul 2016

I find the time perfect for ever home-owner wannabe. Prices should slowly, but steadily drop, at least for the inner buyer. Making it harder for outsiders to buy properties (the whole Brexit thing means...

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