Collectively, they were worth over £47.76 billion, which equates to £2.24 million per property.
Many of these properties will require mortgages, but a number of lenders only provide finance against the value of the property you are looking to buy. In contrast to this, Investec Specialist Private Bank provides custom-built mortgages of £1 million or more, that take into account the income of the client and also their earnings potential, as opposed to simply the value of the mortgaged property. This enables it to develop a mortgage that is designed around the individual circumstances of the client, which includes scheduling repayments on a timescale that suits them. These are features that Investec Specialist Private Bank says are particularly appealing to high net worth individuals who may receive irregular income, such as lump sum bonuses.
Looking at the 10 regions in the UK that have the highest number of million pound plus properties, nine saw an increase in the number of these homes for sale in Q2 of this year when compared to the same period in 2010. Both Kent and Hampshire saw increases of 42%. Only London saw a slight decline of 1%, but the research reveals that 44.5% of the multi-million pound homes on the market during Q2 of this year were in the capital.
In terms of the value of multi-million pound homes on the market, 6,670 or 31% were valued at £2 million or more. Some 1,194 (5.6%) were valued at £5 million or more.
Jack Jones of Investec Specialist Private Bank said, “Our research shows just how big the multi million pound property market is in the UK, and that it is growing rapidly. However, as mortgage lending falls2, many of those looking to buy these properties may find it increasingly difficult to secure the necessary funding.
“With our unique approach that is based around flexibility and the client as opposed to the property they are looking to buy, the super-prime residential mortgage market is a huge opportunity for us.”
Andrew Smith, research director at PrimeLocation.com comments, “In an environment of restricted mortgage funding, London’s residential market has been partially supported by international buyers, ensuring that £1m+ properties have continued to sell. Whilst this research confirms the dominance of London in this sector, it is interesting to see the stock growth being driven by the other counties.
“The profile of the prime stock outside of London continues to change, with 43% of £1m+ properties being new to the market in Q2. Over the coming months, higher levels of mortgage funding will be vital to keep this market ticking over, especially within £1m to £3m price bracket.”
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