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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MBM Homelets
MBM Homelets 23 Mar 2017

Although this is a very positive step, there is little or no guarantee of the standard of workmanship employed by the tenants. We have had experience of a professionally decorated property being ' painted'...

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ajay
ajay 21 Mar 2017

How is the "robust evidence" looking now?

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NathanG 20 Mar 2017

I've been watching the series so far and am completely baffled by the cases that were presented. Though, I don't think that we can protect ourselves from every scam possible - it will just make the scammers...

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Landlady14 01 Mar 2017

You would think so Niraj Shah! My experience only proves that there are varying qualitiers of professional in all aspects of property letting. None of the ones I have dealt with, from letting agents to...

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Mark
Mark 01 Mar 2017

Thanks for this article. Hopefully one day everybody's lifestyle will be eco-sustainable.

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Ben Taylor
Ben Taylor 28 Feb 2017

I was convinced that London was the most expensive!

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Alan Read
Alan Read 28 Feb 2017

Australia are leading the way in this I think. The trouble with Britain is we don't get enough sun to make use of solar power.

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James Powell
James Powell 27 Feb 2017

This is a very good news.

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DanHumphreys
DanHumphreys 27 Feb 2017

It sounds like a good idea. Anything to help the younger generation get a foothold.

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Matt
Matt 20 Feb 2017

Is this fake news?

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Matthew Hollywood
Matthew Hollywood 07 Feb 2017

Matthew Hollywood - Director Mishon Mackay Land & New Homes - Brighton The shortage of New Homes is in part effected by the lack of land sales. Land sales are held back because there is a disparity between...

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CommercialTrust 30 Jan 2017

Hi Graham, Would be interesting to see the above figure calculated against an investment via a Lt Company /SPV structure and if the investor found themselves pushed in to the higher tax bracket. Mortgage...

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