The number of homebuyers taking out mortgages exceeding £500,000 has increased significantly outside London and the South East, according to data from Savills.
In the year to October, 3,875 buyers in the North purchased properties with mortgages worth more than £500,000, representing a 16% increase compared to five years ago. The Midlands saw a 17% rise during the same period, while Wales, Scotland and Northern Ireland recorded a 27% increase. In contrast, London and the South East experienced a 2% decline.
Regional shift in housing wealth
Lucian Cook, Head of Residential Research at Savills, attributed the trend to diverging house price growth across the country. “Areas in the North, the Midlands and Scotland have shown growth in housing prices, while there is more downward pressure in the South and some other parts of the country,” he said.
Cook explained that growing housing wealth accumulation in the North has given buyers confidence to take on larger mortgage debt. “More latitude in how lenders apply affordability rules also means that more people are passing stress tests,” he added.
The shift reflects broader changes in regional property markets, with northern areas gaining momentum while southern markets face pressure.
Geographic distribution
Despite the growth elsewhere, London still accounted for nearly 23% of all £500,000 mortgages last year, followed by the South East at 9.6%, the East of England at 6.9%, and the North at 5.4%.
In Kensington and Chelsea, the average home loan reached £650,000, whilst Westminster recorded £500,999. Elmbridge in Surrey had the highest average outside London at £450,999.
Beyond London and the South East, Trafford in Greater Manchester recorded the highest average mortgage at £277,500, followed by Warwick at £261,015 and Bromsgrove in the Midlands at £252,749.
The data suggests a rebalancing of the UK property market, with pricing pressures varying significantly by region. The trend towards higher-value borrowing in northern markets indicates strengthening purchasing power in areas that have historically lagged behind the capital in terms of property values.
