The question of houses worth more than £2 million is currently in the news. To read some of the more florid press coverage you might think that we are all in danger of finding that our homes have accidentally become mansions.
This is simply nonsense of course.
To get a quick shot of reality it’s worth looking at the latest Land Registry figures for houses sold in England and Wales. This data source is preferred over the commonly used lending figures, since experience suggests that very expensive house are those most likely to be bought without a mortgage. The following figures are for sales in the month of February 2015.
- 70,470 houses sold
- 189 houses sold for more than £2 million
- 0.27% of house sales were over £2 million
On the basis of these snapshot figures, just 27 buyers in every 10,000 pay more than £2 million for their homes.
This should not really need saying as it is such an obvious point, but note that there is a very strong link indeed between owning a home worth £2 million and being very well off.