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Midland house sales on the rise after London price hike

Mortgage broker Private Finance released findings of a Land Registry study Photo: PA

The number of million-pound home purchases outside London could overtake those in the capital this year, analysis suggests.

Mortgage broker Private Finance, which studied Land Registry figures covering England and Wales, said London has traditionally seen the bulk of sales of homes worth £1 million-plus, accounting for 53% last year.

Among the top places listed as seeing the most growth in recent years are:

  • West Midlands
  • Gloucestershire
  • Essex
  • Hampshire
  • Kent
  • Manchester

The ripple effect of prices rising outside London, combined with a slowdown in the pace of price growth in the capital, means that more than half (51%) of £1 million-plus property transactions could take place outside London in 2017 if recent trends continue.

In 1995, when house prices were much lower, London had an 81% share of transactions of £1 million or more.

Shaun Church, director at Private Finance, said:

Sustained house price growth in London means that even for many highly paid professionals, a large family home in the capital is now out of reach.

– Private Finance, Shaun Church

Hometrack recently said prices in London were up 3.3% year-on-year, while in Birmingham they saw an increase of 7.7%.