UK high-value mortgages rise outside London and South East

Data from Savills indicates a significant increase in homebuyers taking out mortgages exceeding £500,000 in regions outside of London and the South East. Over the year leading to October, the number of such large loans rose by 16% in the North and 17% in the Midlands compared to five years ago. Wales, Scotland, and Northern Ireland saw even higher increases of 27%.

In contrast, London and the South East experienced a 2% decline in high-value mortgages. Lucian Cook, Head of Residential Research at Savills, attributed this shift to diverging house price growth, noting that rising housing wealth in northern regions has provided buyers with the confidence to assume larger debts. He also noted that increased latitude in how lenders apply affordability rules has allowed more individuals to pass stress tests.

While London still accounts for nearly 23% of all £500,000 mortgages, the geographic distribution is rebalancing. In London, average loans reached £650,000 in Kensington and Chelsea. Outside the capital, Elmbridge in Surrey recorded the highest average at £450,999, while Trafford in Greater Manchester led other northern areas with an average of £277,500.