The number of £1m-plus homes in Britain continued to grow last year, with 3,127 more properties surpassing the million-pound threshold, according to research by property firm Savills. Despite economic challenges, the resilience of high-value homes has been evident, with the total number of £1m properties now standing at 702,580.
London leads the charge in £1m homes
One in every 42 homes in Great Britain is now valued at over £1m, with London seeing the largest increase. The capital now has a record-high 349,068 £1m-plus properties, making up one in every 11 homes. The unwinding of pandemic trends has played a key role in shifting demand back towards urban centres, according to Lucian Cook, head of residential research at Savills.
“This market returned to growth last year, after the market and prices fell from their pandemic higher in 2023. But, growth has been limited by higher mortgage costs and stretched affordability, further reducing some of the gains made over the course of the pandemic in suburban and rural areas,” said Cook.
“However, increased demand for city living driven by the return-to-work movement has rebalanced the market back in favour of London homeowners, with 5,000 properties crossing the £1 million threshold in 2024.”
Cook also noted that improving economic conditions could further boost the £1m property market: “Falling mortgage rates and improved optimism among second steppers should increase the share of £1m homes more significantly over the coming year. With commutability and good schools likely to be the key drivers for where growth is most concentrated.”
Regional growth in high-value homes
Outside of London, the number of £1m properties saw slight declines, down by 1% overall. However, the five-year growth rate remains strong, with a 58% increase in high-value properties across the rest of Britain compared to London’s 16%.
The North East saw the largest percentage growth in £1m homes outside of London, with a 5.5% increase. The West Midlands led in the number of new property millionaires, adding 918 homes to the category over the past year.
Peter Daborn, head of residential sales at Savills in the West Midlands, explained the factors behind this shift: “The rise in million-pound homes in this part of the world is largely driven by demand, with buyers moving to the area from more expensive parts of the UK, which is naturally driving up prices.”
“We see many buyers still taking advantage of flexible working and the appeal of living in the countryside is still a big draw, with London commutable in little over an hour from the likes of Stafford station. The recent changes to school fees are also having an impact on the region’s property market, with more buyers driven to the West Midlands to take advantage of the abundance of highly regarded public schools on offer.”
Outlook for the property market
While some areas have seen a slight dip in £1m properties, the slowdown appears to be easing. The South East, East of England, the South West and Wales all experienced declines in £1m home numbers, but at a slower rate than in 2023.
Daborn highlighted that affordability is becoming a balancing factor for buyers: “When coupled with the relative affordability in counties like Shropshire and Staffordshire, a new balance is struck, meaning families can still have the complete package of the home, lifestyle, and education they want, without increased financial burden.”
As mortgage rates stabilise and demand for prime property remains strong, the number of £1m homes is expected to continue its upward trend, particularly in well-connected locations with strong amenities.
