The number of properties sold for a million pounds or more in Great Britain rose by only 1% in 2018, ending a decade of growth (194% over 10 years), according to analysis from Lloyds Bank.
The result can be directly linked to year on year sales in London being flat, with 8,267 million-pound homes sold in 2018, compared to an all-time high of 8,308 in 2017. There was also no measurable growth in the South East with 3,390 million-pound homes sold in 2018, just up from the 3,377 sold in 2017.
In addition, London experienced a 3% drop in the number of two million-pound plus homes sold, reducing from 1,946 to 1,886 over the course of the year, although this is still up 188% from a decade ago.
The biggest fall across Great Britain was in the Yorkshire and Humber, with million-pound home sales dropping by 23% from 2017, (133 homes sold in 2017 to 103 in 2018). The South West experienced a fall of 1%, from 676 homes in 2017 to 668 in 2018.
Despite the slowdown, the total number of homes sold for more than a million pounds in Great Britain was 14,638, the highest number ever recorded. The number of houses sold for more than two million pounds was down slightly, from 2,530 in 2017 to 2,501 in 2018.
While transactions in the capital remained flat last year, those in the East Midlands rose by 39% in the same period. 100 million-pound homes were sold in the East Midlands in 2018, a dramatic increase from the 49 sold in 2008.
Sales in the West Midlands were up by 13% compared to 2017, with the number of homes sold over the last year increasing from 198 to 223.
Other regions experiencing positive growth included Scotland (up 14%), the North West (up 9%), Wales (up 9%) and the North East (up 4%). However, given London and the South East made up 79% (56% and 23% respectively) of all one million-pound plus sales in Great Britain, the flat results in these regions out-weighed positive gains elsewhere.
Nine of the top 10 Local Authority Districts with million-pound house sales in 2018 were located in London, with Westminster (888 houses), Kensington & Chelsea (808) and Wandsworth (740) rounding out the top three. The only Local Authority outside of London in the top 10 was Elmbridge in the South East, which came in at number seven with 429 houses sold.
The story was similar in terms of two million-pound house sales, with Kensington & Chelsea (432), Westminster (418) and Hammersmith & Fulham (167) making up the top three. Again, Elmbridge was the only Local Authority outside London to feature in the top 10, with 87 houses sold for £2m and above.
Outside London and the South East, Local Authority districts St Albans and Epping Forest in the East of England had the highest numbers of million-pound properties sold with 193 and 117 respectively. Three Rivers (115), Edinburgh City (111) and Cheshire East (102) were the only other areas to see sales over 100.
Louise Santaana, head of private banking and lending, Lloyds Bank Private Banking, said: “The high-value property boom the country has experienced over the last decade has decelerated in the past 12 months, which is in line with expectations.
“However, while growth across London and the South East has slowed, there are still a number of property hotspots across the country that would create some value for investors, particularly in the East Midlands. We would urge anyone looking to buy a high value property to speak to a specialist adviser to discuss the most appropriate options.”