The million-pound drop
The number of properties that sold for more than £1million fell in the first half of 2015. National sales are down by 11% compared with the same period in 2014, and sales of £1million-plus homes in London fell by 15%, according to research from Lloyds Bank. In the South East, sales in this price bracket fell by 9% in the first half of 2015. Research indicates national sales in the £5m-£10m price range were 15% lower, and those between £2m and £5m were down by 26%. Within these same price brackets in London, prices fell by 18% and 26% respectively.
Asking prices hit new record high
Rightmove reported the highest ever national average asking price in October at £296,549 – 5.6% higher than last year. Much of this was fuelled by the increase in demand from first-time buyers.
Doing nothing by halves
Research from comparison website GoCompare has found that the average UK salary of £22,000 is less than half the average needed to get on the property ladder. On average, a minimum household income of £50,000 is required, with a 90% mortgage. London was found to be the most unaffordable part of the country, where a minimum annual household income of £140,000 is necessary to buy a flat, rising to £275,000 for a detached house.
Landlords could be ready to move out
Research from the National Landlords’ Association indicates that 5% of buy to let investors could sell up following the Government’s plans to remove mortgage interest relief for landlords. If true, this could affect some 600,000 tenancies across the country. Around 60% of London landlords would reduce the size of their property portfolios in the event of a rent freeze.