A distinct trend is emerging in higher-value financing within the UK residential property market. According to recent research by property services firm Savills, the number of buyers taking out loans of more than £500,000 has risen noticeably outside the traditional hubs of London and the South East.
This development is particularly pronounced in the North of the country. In the twelve-month period to October, 3,875 buyers in the North purchased properties using mortgages worth more than £500,000. This represents an increase of 16 per cent compared to the level five years ago.
Shift in the high-value lending segment
Historically, mortgage volumes of this magnitude were concentrated primarily in the UK capital and the adjoining regions of the South East. The research from Savills now demonstrates that demand for financing above the £500,000 threshold is increasingly spreading to northern markets.
- —Significant increase in mortgages over £500,000 outside London and the South East
- —A total of 3,875 buyers recorded in the North in the period to October
- —Growth of 16 per cent compared to the corresponding period five years ago
The half-a-million-pound mark traditionally represents the entry point into the prime market segment in residential property finance. The fact that more and more buyers in the North are taking out loans of this scale highlights the growing importance of the local market for higher-priced homes.
As PropertyWire reports, citing Savills data, the latest figures document a structural expansion of the prime financing market, which for many years was concentrated almost exclusively in Greater London and the South East.
