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Flats make appearance in UK's super-prime property market

Wednesday 23rd November 2016

Research into the super-prime property market has revealed that there are currently 21 properties in the UK priced £20 million and above, with five of these being flats. 
 
The research, conducted by online estate agent HouseSimple.com, found that there are 107 £10 million-plus properties for sale in the country, with only eight of these existing outside of London. 
 
In the capital itself, the super-prime homes are concentrated within a small number of areas – in fact, 40% of all homes for sale worth £10 million or above are located in just three postcodes: SW7, SW1 and W7.
 
As if to highlight the pull of London living, the £20 million-plus club includes a 4-bed flat in Knightsbridge. At the same time, a 70-acre country house in Ascot, Berkshire is on the market for £30 million.
 
Although you get more bang for your buck away from the capital, only one property valued at £20 million or above was found outside of London – going to show that the super-prime property market in the UK exists almost exclusively in one location. 
 
The super-prime market has, however, been hit hard by the recent stamp duty changes. Stamp duty on a £20 million property would currently be a mind-boggling £2,313,750. Taken together, the overall cost of stamp duty for the £20 million-plus club would be a massive £72,228,150.
 
Unsurprisingly, the most expensive property currently for sale in the UK can be found in well-heeled Belgravia, where a 6-bedroom terraced house has a barely believable asking price of £62,500,000. This means any buyer would have to stump up £7.5 million for stamp duty alone, equivalent to the total stamp duty cost of 4,038 properties (marketed at the UK national average asking price of £217,888) combined. 
 
Added together, the 107 £10 million-plus properties have a combined value of nearly £1.7 billion, with most of this property wealth concentrated in Central London postcodes. Places like Belgravia, Mayfair and Knightsbridge, so well-known for affluent lifestyles and high-end properties, lead the way. 
 
“The super prime market has suffered since the stamp duty changes, but that doesn’t mean it’s dead in the water,” Alex Gosling, CEO of online estate agents HouseSimple.com, said. 
 
“When you have £20 million plus to spend, you’re unlikely to baulk at paying a few million pounds in stamp duty. And there are buyers out there still willing to pay premium prices to live in the most exclusive areas.”
 
He went on: “So what does £20 million get you? Outside London you can probably pick up a country estate. In London, with the price per square footage so high in areas like Knightsbridge and Belgravia, you might have to lower your expectations.” 
 
“It’s staggering that a quarter of the most expensive properties on the UK market right now are flats. It just shows how crazy the property market is in the capital when £20m doesn’t even buy you a house!”
 
              

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