Behavioural and lifestyle changes have shaped the pattern of growth in the prime markets with greater price growth outside the capital as buyers and sellers look for more indoor and outdoor space. Between 2019 and 2020, prime regional prices grew by 3.6 per cent while prime London prices grew by 1.1 per cent. This trend was reflected in the change in the number of homes now worth £1 million or more: the increase was almost five times bigger outside London. 

While we’ve seen accelerated growth beyond the capital, that isn’t to say that London and its commuter belt hasn’t retained its dominance. London alone has a greater share of £1 million+ homes than the rest of Great Britain combined (54.5 per cent), followed by 22.2 per cent for the South East. One in 12 homes in London are worth over £1 million compared with one in 32 in the South East.

The gap between the North and South also remains strong. Several local authorities in the South have more homes worth over £1 million than the whole of the North of England. As a striking example, Wandsworth in southwest London has almost the same number (33,217) as Wales, Scotland, the North East, North West and Yorkshire and Humber combined (33,261).

Looking ahead, in our latest Cross Sector report, we predict that the gradual return to an office environment and rising unemployment may temper activity later in the year in what remains a mostly price-sensitive market. However, the prime housing market is likely to be more insulated from these factors than the mainstream market and the number of £1 million+ homes, now worth more than £1.15 trillion in total, is unlikely to have peaked. 

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Further information

Contact Lucian Cook

Contact Savills Research