Million-Pound Property Falling Across the Country
Greetings everyone, in this video I will be talking about the nationwide fall in properties valued over £1m….
The Numbers Don’t Lie
Here are some eye-opening figures:
– The number of properties worth over £1 million has taken a nosedive.
– We’re talking about a whopping 8.3% decrease – that’s 60,260 fewer posh pads!
– By the end of 2023, the total count stood at 670,100.
We are witnessing the Great Reverse Migration
Remember when everyone was fleeing to the countryside during the pandemic? Well, the tide is turning:
– 80% of this decline happened outside London.
– Those fancy white-collar workers who swapped their city digs for rural retreats? They’re selling up!
– The East and South East of England, Yorkshire & The Humber, and Wales saw the steepest drops at 13%.
– London? It’s holding steady with only a 4% dip.
What’s Behind This Shift?
- **The End of WFH Dreams**: More people are heading back to the office. For the first time since the pandemic:
– 43% are working full-time in the office
– 39% are hybrid working
– Only 18% are fully remote
- **The Mortgage Crisis**: Remember those plans to move using cheap credit? Well, they’ve been royally scuppered.
- **The Reality Check**: As once source described, “Buyers and sellers have realised the grass isn’t always greener out of town.”
What’s the Big Picture
While it might seem all doom and gloom, let’s put things in perspective:
– There are still 52% more million-pound homes in London compared to 2019.
– Across the UK, that number is up by 28%.
– Wales has seen a staggering 113% increase since before the pandemic!
- Last but not least, there is the economic factor. My personal experience with potential buyers of higher-end properties, is that they are anxiously waiting to see what the budget has in store. There have been rumours of ‘Mansion Tax’ and re-structuring Council tax bands, with many feeling that under the current administration, the investment into a high value property, may not be an investment at all, but little more than an expensive liability.
Over the last year, there has been a steadily increasing exodus of millionaires from the UK, which has increased exponentially since the election, with the added risk that the impending pursuit of Non-Doms, may actually have the reverse effect, by simply driving these people who contribute £87.bn to the UK economy to simply relocate elsewhere, after all, they can still spend a significant amount of time in the UK without being obligated to pay anything.
What’s Next?
According to industry analysts, we might see major cities outperforming the wider market over the next decade. So, keep your eyes peeled on those urban hotspots! Although much of the high-end properties is now falling into the hands of overseas investors and corporations, the question is, what effect will the actions of this administration have on the appeal of investing into the UK property market………..that remains to be seen.
That’s all for today, thank you very much and see you next time.