The number of £1m+ transactions climbed month-on-month ahead of December’s election.
Analysis by high-net-worth mortgage broker Enness Global has found that the volume of property transactions across the nation’s £1m+ property market were not included in the bounce that followed December’s election for the rest of the market.
The number of £1m+ transactions climbed month-on-month ahead of December’s election.
Enness Global found that, while the overall market enjoyed a bounce in the months that followed the election, transactions on property selling at £1m or more declined at an average of 45% per month between December and March.
The largest monthly decline (87%) came between February and March as the nation approached lockdown and the market faced further uncertainty.
Year-on-year, transactions at £1m and above were 91% lower when compared to March last year; again, this was largely driven by government-imposed restrictions.
However, compared to a year ago, the average sold price for properties at £1m and over increased by a notable 4%, averaging growth of 1.5% a month since the election.
This is the most consistent level of growth seen over the last year with three consecutive months of positive movement.
Islay Robinson, group CEO of Enness Global, said: “The high-end market is one built on a quality over quantity mentality and as a result, a transactional decline can often be more pronounced during periods of market instability, with recovery periods also taking longer.
"That’s certainly been the case of late and while much of the wider market enjoyed a swift return to form following December’s election, the almost immediate industry-wide lockdown that followed in March has prevented the top end of the market from gathering momentum.
"This has been driven, for the most part, by a decline in foreign buyer interest with many unable to travel and therefore opting to put their purchase on hold.
"However, despite the notable decline in transactions, there has been a silver lining in the form of consistent, upward price growth.
"This is a natural occurrence in a market where demand remains while supply falls, but for the average sold price at this tier to climb at plus one percent for three consecutive months demonstrates a very firm foundation.
"With this foundation in place, it is very likely that the prime UK market will bounce back in the coming months and any drastic drop in values seen during previous periods of market turbulence is unlikely to materialise.”
