Although the economic downturn has hit the UK property market hard over the past eighteen months, Birmingham has experienced an increase in the number of homes that have been sold for more than £1 million.
According to a report released by the Halifax, the sales of new homes in Birmingham and across the West Midlands saw a rise of 127% in sales during the year which is the second highest to volumes of sales in London of £1 million properties that reached a 134% increase.
Reasons behind this sales boom of new houses for sale in Birmingham are because more vendors are adjusting their prices to a lower and more realistic level due to the stagnant status of the market. Previously prices were too high which put off buyers causing fewer properties over £1 million to be sold.
Mortgages for £1 million plus homes were also being queried by mortgage providers because of the over-inflated prices being asked for the properties, which in turn prevented house deals from going through due to the lack of mortgage financing. Because of the more realistic pricing expectations that have been set, more mortgages have been approved.
Sales in this niche property sector were also affected by the volatility and instability of the current property market and buyers not being confident enough to buy homes and pay higher prices, which in turn stopped the £1 million plus market from growing any further.
The £1 million plus property market is a small one overall in the UK with approximately 0.9% of total UK house sales. However, the sales growth in this sector of the property market has superseded the wider housing market in the UK.
Notes to Editors:
What House? is a leading property website that features thousands of new houses for sale in Kent and Birmingham as well as the rest of the UK. It also provides the latest property news, valuation of homes and property and mortgage advice. Over the last 30 years, What House? has held their annual What House? Awards, which are the longest established New Homes awards in the UK recognising UK house builders and developers across 23 categories.
