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

Join our mailing list:

Leave a comment



Latest Comments

luxus
luxus 27 Sep 2016

It can be stressful. More clarity is needed on the process, from a customer perspective and consideration should be given to using the Scandinavian model where the sales process is much quicker.

view article
Melissa_Green
Melissa_Green 26 Sep 2016

Green belts are normally designated around capitals and other major cities and conurbations and their aim is to prevent urban sprawl by keeping land permanently open. The essential characteristics of green...

view article
Jimmy_McCoy
Jimmy_McCoy 16 Sep 2016

I think that the main reason to buy garden purchases in last minute is because people always search for the best deal. In summer months there are abundance of seasonal goods and it means more low cost

view article
Jimmy_McCoy
Jimmy_McCoy 16 Sep 2016

Buying a home often is more expensive than you expect. There are lots of hidden costs such as: stamp duty, surveys and valuations, mortgages etc. that can add more than 10% to the total bill

view article
Homebuyerconveyancing
Homebuyerconveyancing 15 Sep 2016

We are seeing a massive influx of Homebuyers using online Estate Agents. The winners are the online portals that still aim to manage the customer journey to homeownership. They provide a valuation service,...

view article
oliviaG
oliviaG 12 Sep 2016

Without a doubt renovating can truly be very beneficial to many homeowners but it depends to a great extent on the condition of your home and the parts of it you want to refresh. Before you start you should...

view article
oliviaG
oliviaG 29 Aug 2016

So true about cats!

view article
Jason Roberts
Jason Roberts 25 Aug 2016

Any predictions what average rent will be at the same time next year, anymore drops coming?

view article
dylanvan
dylanvan 19 Aug 2016

very good, thanks for sharing

view article
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,...

view article
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...

view article
jasonevans
jasonevans 19 Aug 2016

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

view article

Related stories

More articles from Property