Sales are down by 11% compared to the same period in 2014 – from 6,303 to 5,599 – which is in stark contrast to the 46% increase seen in the first half of 2014, and the first decline in sales since H1 2012.
Sales of million pound homes in London fell by 15% from 4,357 to 3,703 in H1 2015, the largest decline in the capital since H1 2009 when transactions fell by 43% during the lowest point of the housing downturn. However two-thirds (66%) of all million pound home sales in UK are still in London, with the largest national shares in Kensington & Chelsea (10%) and Westminster (9%).
In the South East sales in this sector fell by 9% (1,137 to 1,037) in the first half of 2015 compared to a year earlier.
However, in Scotland the sale of million pound homes has more than doubled from 43 in H1 2014 to 111 properties a year later, an increase of 158%.
Virginia Water, Cobham and Beaconsfield are Britain's most expensive towns, with an average house price of over £1 million. This is the first time the average property price has hit £1 million outside of London.
Whereas last year the top end of the market outperformed the rest, the decline in million pound home sales this year has tracked the rest of the market, with sales of properties under £1 million also falling by 11% in H1 2015.
The sale of multi-million pound homes in the first half of 2015 has fallen significantly compared to the same period a year earlier, with sales in the price range £5 million to £10 million 15% lower, and those selling between £2 million and £5 million down by 26%. In London the decline was 18% and 26% respectively.
While there could be a number of reasons for this, the changes to Stamp Duty in December 2014 mean, for example, that a buyer paying £5 million for their property today needs to find £163,750 more than at this time last year to pay the tax.
Sarah Deaves, Private Banking Director at Lloyds Bank, said: "The number of homes sold for over £1 million has fallen sharply over the past year, with a pronounced slowdown in the prime and Central London market. This may be the effect of the new Stamp Duty rates introduced last December and uncertainty generated by the election in May.
However, the regional picture is much more mixed and we’re seeing the emergence of towns where the average price is at least £1 million. Whilst there are several London neighbourhoods where prices are already at this elevated level, outside of the capital this is a first."
Nitesh Patel, economist at Bank of Scotland, had this to say: "The amount of homes in Scotland that have sold for more than a million pounds has more than doubled within a year, which is a stark contract to Great Britain as a whole, which has seen an 11% decrease. Sales south of the border may have been impacted by the new Stamp Duty rates last December; whilst the equivalent Land and Building Transaction Tax came into force for Scottish homebuyers only in April.
It’s no surprise that Edinburgh had the most million pound sales in Scotland, however four regions went from having no sales last year to three or four this year - East Renfrewshire, Glasgow City, South Ayrshire and South Lanarkshire. Edinburgh, East Lothian and Aberdeen continue to dominate the market share of million pound property sales in Scotland.”
