New analysis from leading property firm Savills has revealed that approximately one in 45 homes across Britain now carries a valuation of £1 million or more. This represents a significant shift in the UK's housing landscape, though the current proportion remains below the peak levels witnessed during the pandemic-driven property boom.
Market Rebalancing After Pandemic Peak
According to Savills' detailed calculations, there are currently 673,143 properties across Britain valued at £1 million or more. While this figure represents an increase from the one in 55 homes estimated to be worth £1 million-plus in 2019, it marks a notable decline from the one in 40 homes that reached this threshold during 2022's housing market surge.
The property experts note that over the past year alone, the number of million-pound homes has decreased by approximately 29,400 properties. This represents a reduction of around 9% or 63,500 fewer homes compared to the mini-housing boom of 2022, when pandemic conditions triggered what became known as the "race for space" among buyers seeking rural and coastal properties.
Regional Variations in Million-Pound Property Trends
The research highlights significant geographical disparities in how the million-pound property market has evolved. London continues to dominate this segment, with approximately half of all million-pound properties located within the capital. However, other regions have experienced more pronounced fluctuations.
Lucian Cook, head of residential research at Savills, explained the market dynamics: "Higher mortgage costs, changing lifestyle priorities and tougher tax measures have rebalanced the market, causing pockets of growth to contract. More recently, additional tax burdens placed on the most prime properties, particularly in central London and across second-home hotspots, have meant that some of the most expensive neighbourhoods have experienced some of the sharpest pullbacks to values."
Detailed Regional Breakdown
Savills' analysis, which combines Land Registry data with price movements from their own prime regional property index, provides a comprehensive regional picture of million-pound property distribution and recent changes:
- London: 340,620 properties (minus 8,447 from previous year)
- South East: 151,659 properties (minus 8,314 from previous year)
- East of England: 58,466 properties (minus 5,873 from previous year)
- South West: 40,706 properties (minus 5,618 from previous year)
- West Midlands: 21,662 properties (minus 403 from previous year)
- North West: 20,491 properties (minus 273 from previous year)
- Yorkshire and the Humber: 11,967 properties (minus 233 from previous year)
- Scotland: 11,329 properties (no change from previous year)
- East Midlands: 9,188 properties (minus 98 from previous year)
- Wales: 4,337 properties (minus 149 from previous year)
- North East: 2,717 properties (minus 30 from previous year)
Post-Pandemic Market Correction
The research indicates that regions which experienced the most dramatic increases during the "race for space" phenomenon have subsequently seen the most significant corrections. The South East and South West both witnessed substantial jumps in million-pound homes during the pandemic period, but have since seen many properties fall back below the £1 million threshold.
Savills estimates that approximately 40% of South East homes that entered the £1 million-plus bracket between 2019 and 2022 have since dropped out of this category. This contrasts sharply with London, where only around 15% of properties that reached the million-pound mark during the same period have since fallen below this valuation threshold.
Regional Resilience and Stability
Interestingly, the analysis reveals that Northern England, the Midlands and Scotland have demonstrated greater stability in their million-pound property segments. These regions are particularly unlikely to have seen properties falling back under the million-pound threshold over the past three years, suggesting more sustainable growth patterns in these areas compared to the more volatile southern regions.
This regional analysis provides valuable insights into how different parts of the UK have responded to changing economic conditions, shifting buyer priorities, and evolving tax policies affecting high-value residential properties.
