MAY 2021
E A S T M I D L A N D S M A R K E T U P D AT E
KEY STATS E AS T M ID LAN D S
£481,000
£630,186
10.19%
£291
£1.65bn
139
LATEST DATA
QUARTERLY CHANGE
ANNUAL CHANGE
82,735
-11.3%
45.3%
RESIDENTIAL TRANSACTIONS
190,980
31.2%
102.4%
GROSS MORTGAGE LENDING
£35.6 bn
25.8%
54.6%
NEW HOME STARTS (QT)
29,980
-4.5%
27.1%
NEW HOME COMPLETIONS (QT)
44,030
27.6%
11.4%
MORTGAGE APPROVALS
2 I PREMIUM MARKETS I EAST MIDLANDS
MARKET OVERVIEW MAO R WDAERSD UVTIUNMGNF O S HA Brexit have dominated headlines over quarhas ter, bounced and whileback, the Only aand yearthe on budget from a full property market lockdown andthe thepast market latter fireworksdemand for theisreal estate market, the dealthe or market, no deal aquestion hittingprovided new highs.few Continued driving momentum across shortage of continues to linger. Rhetoric has been more measures positive inare recent all eyes supply underpinning price growth. Protective easingweeks; as thenow roadmap to are on the EU summit in mid-November. theunderway. uncer tainty, annual house price growth ‘normality’ progresses, with economicDespite recovery remains positive across England and Wales, except London, although transaction levels remain muted. CONFIDENCE CLIMBS WATCHING AND WAITING Restrictions are lifting and the UK’s vaccine rollout is both on
track and successful. economic There wasproving positivehighly economic newsContinued in the Budget: eight support the government in the2010 March years of packages, economicannounced growth, 3.3bymillion new jobs since Budget, were more a welcome boost, supporting the economy with 800,000 forecast by 2023, and wage growth atas it reopens Consumer is at its highest level since its highestfully. level in nearly confidence a decade. Independent forecasts from the of Office Budget Responsibility the start 2008,forthe PwC index 34 points(OBR) higheralso than at the predict to fall UK backbusiness to the government’ target of start of inflation the pandemic. confidence ins the service 2% over the course of 2019. However, sales volumes and manufacturing sectors was at its strongest level in April remain low, down2013 3.8%(IHS across the East in the expect since November Markit). The Midlands latest forecasts twelve toto June compared to a year earlier. the UKmonths economy return to its pre-pandemic level After by thea brief reprieve oversixthe summer the number of mortgage summer of 2022, months quicker than previously approvals the UK hasisalso slowed. anticipated.across Unemployment set to peak at 6.5%, considerably
lower than earlier forecasts of 11.9% (OBR). Interest rates While annual house price growth across much of the UK is remain low and although mortgage approvals dipped slightly slowing, the East Midlands is an exception. Annual house in April to their since last August, in excess price growth in lowest the yearlevel to August (UK HPI) was 6.5%,ofup 82,700 loans were approved, over 20% higher than thethe long UK from 5.9% a year earlier and significantly higher than term (5-year) monthly average (Dataloft, Bank of England). average of 3.2%. Across the prime market annual price The extension the stamp dutypast holiday growth wasof1.7% over the year.and the introduction on April 1st of 95% government-backed mortgages were welcomed by the property sector.
report the sales rate per surveyor in March was at its highest levelbesince the summer of 2014, the 2023, sales-to-stock extended until the end ofwith March with theratio valueatof its strongest in over 17 years. Momentum continued into April, the loan subject to a new regional cap. Across the East Rightmove selling faster theanfirst two of Midlandsreporting the cap properties will be £261,900. Basedinon analysis weeks than at any point in its history. Although valuation new build property sales over the past year just overactivity half is on(59%) the rise, this have is failing to keep pacetowith demand, first-time resulting in would been available prospective strengthened price growth. buyers. The SDLT relief introduced for first-time buyers in the 2017 Budget will also be extended to all those who a shared-ownership property. Those who have purchaseDIRECTION FUTURE purchased a shared property since 22nd November 2017 Annual property price across UK is at its strongest will also be able to growth claim the reliefthe retrospectively. in over six years, with price growth in the East Midlands The government is also going to consult on reforms to currently 10.6%, compared to 1.3% a year ago (UKHPI). lettings relief which looks set to impact on many so-called Nationwide report average prices in the UK have risen 2.1% ‘accidental’ landlords. Non-resident buyers will face a 1% between March and April, the largest month-on-month increase additional SDLT surcharge over and above all other costs. recorded since February 2004. Agents are reporting the Although this is yet another tax rise, it is less than the 3% strongest sentiment towards price growth between April and indicated by the government earlier this autumn. June since the summer of 2015 (RICS). Premium markets are currently outperforming the general market; eight out of ten THEin England VALUEand OF PRIME regions Wales are seeing growth of over 10%. HM Treasury netted £330 million in stamp duty receipts
BUDGET WINNERS AND LOSERS
THE PRIME (SDLT) fromMARKETS the East Midlands in the year to the end of
Housebuilders and first-time buyers were the main real RECORD-BREAKING estate beneficiaries of the Autumn Budget. As the government aims to meet its ambitious 300,000 new Spring is traditionally the busiest time of the year for thehomes per yearmarket target, aand range were announced. housing 2021ofisinitiatives already setting records. In March, for the Housing Additional £500 more than monies 190,000totalling property salesmillion were recorded and Investment Fund to deliver 650,000 new homes, new mortgage lending exceeded £35.6 billion, record highs partnerships with Housing Associations, of the according to HMRC and Bank of Englandremoval respectively. Demand revenue cap for local councils and a business-backed levels in March were 34% higher year-on-year (Zoopla) and guarantee scheme SME builders all inone the week pipeline. 23% of homes wereforsold ‘sale agreed’are within As too is large-scale infrastructure investment and moves to (Rightmove). The Royal Institute of Chartered Surveyors reinvigorate the high street, with proposals to allow conversion of unused retail units to residential and changes to business rates relief for small businesses.
March 2018, up 10% on a year previously, aided by a rise in Prime property growth the East is currently sales volumesprice of 2.1%. Justinover one Midlands fifth (22%) of receipts 10.2%, with price growth over recent months. were attributed to thestrengthening purchase of additional properties, Thewith average for araised primefrom market exceeds £100price million the property 3% additional levy alone. £500,000 in allone areas of the of region except Mansfield. in Just under quarter all residential taxation Prices receipts Loughborough have topped £700,000. Higher-value homes were attributable to properties purchased for over 6.1% toinproperties purchased over £1 million. have£500,000, proved popular recent months. Acrossfor England, more than 54,000 homes sold for over £500,000 during the first The average price for prime market property exceeds three months of 2021, the highest quarterly figure ever £600,000 in just one of the areas across the East Midlands, recorded. These buyers have benefitted from a £15,000 saving, Northampton. The prime markets across Leicester and thanks to the stamp duty holiday (HMRC). Northampton are currently experiencing the highest level of price growth, average prices of prime property have risen by 7% and 5% respectively over the past year.
With first-time buyer numbers at an all-time high, rumours that the Help to Buy Equity scheme would be scrapped post April 2021 proved unfounded. Instead the scheme will PREMIUM MARKETS I EAST MIDLANDS I 3
P R E MRIEUGMI O MNAARLK E T S T OP ON 5% PREM IU M5 % M ABRYK ERTEG S : I TOP
£376,000 £376,000 £501,573 £501,573 +7.3% +7.3% £247 £247
£473,000 £473,000 £474,000 £641,792 £641,437 £641,792 +10.8% +10.9% +10.8% £319 £319 £319
£525,000 £525,000 £525,000 £693,912 £693,912 £693,912 +10.3% +10.3% +11.3% £335 £335 £335
£481,000 £481,000 £630,186 £630,186 +10.2% +10.2% £291 £291
£419,000 £419,000 £546,274 £546,274 +10.8% +10.8% £285 £285
£685,000 £686,000 £933,407 £938,080 +14.7% +15.3% £434 £435
44 II PREMIUM MIDLANDS PREMIUM MARKETS MARKETS II EAST NATIONAL
£460,000 £460,000 £460,000 £610,643 £610,643 £610,643 +10.3% +11.1% +10.3% £299 £299 £299
£750,000 £750,000 £1,007,650 £1,007,650 +10.0% +10.0% £483 £483
£905,000 £905,000 £904,000 £1,302,081 £1,302,081 £1,301,890 +17.2% +11.1% +17.2% £517 £517 £501
£1,550,000 £1,550,000 £2,508,438 £2,508,438 +6.4% +6.4% £1,180 £1,180
TOP 5% E AS T M ID LAN D S PR E MIU M MA R KE T
£364,000 £479,642 +5% £240
£433,000 £620,120 +24% £309
£429,000 £534,266 +10% £222
£515,000 £668,600 +16% £320
£450,000 £589,729 +3% £292
£517,000 £716,867 +20% £322
£484,000 £613,485 +10% £269
£492,000 £643,138 +7% £296
£550,000 £678,846 +2% £313
PREMIUM MARKETS I EAST MIDLANDS I 5
TOP 5% E AS T M ID LAN D S PR E MIU M MA R KE T
PROPERTIES SOLD ABOVE THE PREMIUM PRICE THRESHOLD
The premium price threshold is the value over which the top 5% of property sales occur. The chart shows a rolling 12 month change in the average price paid for premium properties compared to the previous 12 month.
EAST MIDLANDS
12.5%
10%
7.5%
5%
2.5%
0% APR 2020
MAY 2020
JUN 2020
JUL 2020
AUG 2020
SEP 2020
OCT 2020
NOV 2020
DEC 2020
JAN 2021
FEB 2021
MAR 2021
Source: Dataloft, Land Registry
BY PROPERTY TYPE OVER THE LAST 12 MONTHS, PROPERTIES SOLD ABOVE THE PREMIUM PRICE THRESHOLD
An individual premium price threshold is calculated for each property type based on sold prices in the last 12 months. The chart shows the average price paid per square foot for all of these premium properties.
EAST MIDLANDS
£400
£300
£308
£289 £255
£275
£291
£200
£100
0 FLAT/APARTMENT
TERRACED
SEMI-DETACHED
DETACHED
ALL PROPERTY Source: Dataloft, Land Registry
6 I PREMIUM MARKETS I EAST MIDLANDS
MAINSTREAM E AS T M ID LAN D S MA I N STR E AM MA RK E T
ALL PROPERTIES SOLD ACROSS THE REGION
Chart shows a rolling 12-month change in transactions compared to the previous 12-month period. PLEASE NOTE: Caution should be taken when viewing this chart as figures may show an exaggerated decline due to the closure of the market April to June 2020. Housing market demand remains strong; the HMRC report sales in March 2021 were the highest monthly figure ever recorded.
Transactions
EAST MIDLANDS
Average sales price
10% 0% -10% -20% -30% -40% MAR 2020
APR 2020
MAY 2020
JUN 2020
JUL 2020
AUG 2020
SEP 2020
OCT 2020
NOV 2020
DEC 2020
JAN 2021
FEB 2021
Source: Dataloft, Land Registry
BY PROPERTY TYPE OVER THE LAST 12 MONTHS OF ALL PROPERTY SALES
EAST MIDLANDS
Average price paid per square foot for all property transactions.
£320
£240
£240 £160
£187
£206
£205 £173
£80
0 FLAT/APARTMENT
TERRACED
SEMI-DETACHED
DETACHED
ALL PROPERTY Source: Dataloft, Land Registry
PREMIUM MARKETS I EAST MIDLANDS I 7
KEY STATS E AS T M ID LAN D S
£204,915 £481,000 £630,186
£117,044 £245,550 £318,698
£149,305 £283,513 £367,466
£184,877 £332,159 £425,252
£302,901 £619,496 £792,220
£211,471 £489,857 £637,744
T: +44 (0)207 079 1515 E: parklane@fineandcountry.com fineandcountry.com
Disclaimer :This repor t is produced for general information only.Whilst ever y effor t has been made to ensure the accuracy of this publication, Dataloft Ltd accepts no liability for any loss or damage of any nature arising from its use or from any changes made to Dataloft content by Inform users. Reproduction of all or par t of the repor t in any form is prohibited without written permission from Dataloft Ltd. Repor t edited by Inform user and published on 04-05-2021.
Please note, HM Land Registry transaction figures since March are lower than usual due to the impact of Covid-19. They are likely to be revised upward. dataloft.co.uk