29 Oct 2015 10:53 AM

House prices in the South East have continued to rise and, as a result, three ‘million pound towns’ have been created outside London for the very first time.

According to figures recently released by Lloyds Bank the price for a house in Virginia Water and Cobham in Surrey and Beaconsfield, Bucks now exceeds £1million.

However rising prices are not the preserve of the South East.  It was Edinburgh and Cheshire East that saw the highest numbers of homes sold for over £1 million during the first 6 months of the year; in fact sales of homes over the £1million mark in Scotland have grown from 43 in the first 6 months of 2014 to 111 in the first half of this year.  Meanwhile sales of £1million plus properties in Yorkshire and Humberside enjoyed a 10 per cent increase.

Looking nationally 5,600 properties worth over £1million were sold during the first six months of this year.  However it’s important to note that despite the encouraging figures coming out of Scotland, Cheshire and Yorkshire & Humberside, more than 65% of these sales were in London, with 10% and 9% taking place in Kensington & Chelsea and Westminster respectively.

And the South East comparisons were made even more acute when Lloyds’ figures reported eight times as many £1million plus properties (73) were sold in St Albans, Hertfordshire during the same period than were sold in the whole of Wales (9).

But despite some the boom in some area there has been a sharp drop overall in sales of properties over £1million.  Sales in the UK from January-June 2015 fell by 11 per cent on the same period in 2014, the first decline in sales since the corresponding period in 2012. 

Interestingly the year-on-year drop within that period was only 7% which could signal an immediate and somewhat negative response from homeowners to the Chancellor’s recent ‘Millionaires’ Tax’.