MAY 2021
E A S T O F E N G L A N D M A R K E T U P D AT E
KEY STATS E AS T O F E N G LA N D
£750,000
£1,007,650
10.04%
£483
£3.59bn
1,255
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 OF ENGLAND
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 6.2%(IHS across the East England in theexpect since November Markit). The of 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 forecasts 11.9% rates House priceearlier growth across of much of (OBR). the UKInterest is slowing, and remain low and although mortgage approvals dipped slightly the East of England is no exception. Annual house price in April in to the theiryear lowest level since August, in excess growth to August (UKlast HPI) was 1.6%, downof 82,700 loans were approved, over 20% higher than long annual from 6.0% a year earlier. Across the prime market, the term growth (5-year)was monthly price 1.4%average over the(Dataloft, past year.Bank of England). The extension of the stamp duty holiday and the introduction on April 1st of 95% government-backed mortgages were BUDGET WINNERS AND LOSERS welcomed by the property sector. Housebuilders and first-time buyers were the main real estate beneficiaries of the Autumn Budget. As the RECORD-BREAKING government aims to meet its ambitious 300,000 new homes per year target, a range initiatives Spring is traditionally theofbusiest timewere of theannounced. year for the Additional monies the Housing housing market andtotalling 2021 is £500 alreadymillion settingforrecords. In March, newrecorded homes, new Investment Fund to property deliver 650,000 more than 190,000 sales were and partnerships with exceeded Housing Associations, of the mortgage lending £35.6 billion,removal record highs revenue cap for local councils and a business-backed according to HMRC and Bank of England respectively. Demand guarantee scheme for34% SMEhigher builders are all in the pipeline. levels in March were year-on-year (Zoopla) and As too is large-scale infrastructure investment and moves to 23% of homes were sold ‘sale agreed’ within one week reinvigorate street, with of proposals to Surveyors allow (Rightmove).the Thehigh Royal Institute Chartered conversion of unused retail units to residential and changes to business rates relief for small businesses. 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
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 of Rightmove reporting properties selling faster in the first two England the cap will be £407,400. Based on analysis of new weeks than at any point in its history. activity build property sales over the pastAlthough year, 76%valuation would have is onqualified the rise,under this is the failing to keep pace with demand, resulting in new cap. The SDLT relief introduced for strengthened price growth. first-time buyers in the 2017 Budget will also be extended to all those who purchase a shared-ownership property. Those who have purchased a shared property since FUTURE DIRECTION 22nd November 2017 will also be able to claim the relief Annual property price growth across the UK is at its strongest retrospectively. in over six years, with price growth in the East of England The government is also going to consult on reforms to currently 6%, compared to -0.3% 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 just over £1 billion in stamp duty
THE PRIME MARKETS receipts (SDLT) across the East of England in the year to the end of March 2018, up 8.5% on a year previously. This Prime growth in the East England currently wasproperty despite aprice fall in sales volumes of of 1.6%. Oneis fifth of 10%, with price strengthening over recent months. In receipts weregrowth attributed to the purchase of additional both Cambridge and£200 Watford, theraised average price a prime additional properties, with million from theof3% property commands a seven-digit The price threshold for a levy alone. Virtually 50% of all sum. residential taxation receipts prime market property £500,000 in allfor areas of the were attributable toexceeds properties purchased over £500,000, were fromHigher-value properties purchased over region except 17% Peterborough. homes haveforproved £1 million. popular in recent months. Across England, more than 54,000 homes sold for over £500,000 during the first three months of The average price for prime market property exceeds £1 2021, the highest quarterly figure ever recorded. These buyers million in two of the main cities/towns across the East of have benefitted from a £15,000 saving, thanks to the stamp duty England: Cambridge and Watford. The prime market across holiday (HMRC). Southend-on-Sea is currently experiencing the highest level of growth, average prices of prime property having risen by 3% over the past year.
PREMIUM MARKETS I EAST OF ENGLAND 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
£420,000 £419,000 £546,376 £546,274 +10.9% +10.8% £285 £285
£686,000 £686,000 £938,080 £938,080 +15.1% +15.3% £435 £435
44 II PREMIUM OF ENGLAND PREMIUM MARKETS MARKETS II EAST NATIONAL
£460,000 £460,000 £460,000 £610,643 £610,643 £610,643 +11.0% +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 £904,000 £904,000 £1,302,081 £1,301,890 £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 O F E N G LA N D PR E MI UM MA R KE T
£423,000 £517,987 +7% £263
£565,000 £833,136 +21% £410 £573,000 £727,094 +13% £288
£849,000 £1,138,571 +5% £494
£625,000 £797,107 +12% £359
£561,000 £709,599 +7% £354
£1,300,000 £1,738,467 +19% £630
£626,000 £811,214 +18% £356 £726,000 £929,935 +5% £425
£677,000 £829,932 +5% £416
PREMIUM MARKETS I EAST OF ENGLAND I 5
TOP 5% E AS T O F E N G LA N D PR E MI UM 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 OF ENGLAND
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 OF ENGLAND
£600
£519
£524
£450
£515
£518
SEMI-DETACHED
DETACHED
£483
£300
£150
0 FLAT/APARTMENT
TERRACED
ALL PROPERTY Source: Dataloft, Land Registry
6 I PREMIUM MARKETS I EAST OF ENGLAND
MAINSTREAM E AS T O F E N G LA N D MA I N STR E A M 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 OF ENGLAND
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 OF ENGLAND
Average price paid per square foot for all property transactions.
£400
£300
£308
£305
FLAT/APARTMENT
TERRACED
£321
£321
£315
SEMI-DETACHED
DETACHED
ALL PROPERTY
£200
£100
0
Source: Dataloft, Land Registry
PREMIUM MARKETS I EAST OF ENGLAND I 7
KEY STATS E AS T O F E N G LA N D
£310,049 £750,000 £1,007,650
£190,954 £390,518 £506,308
£261,450 £525,320 £660,978
£310,024 £649,436 £797,688
£430,148 £998,751 £1,378,388
£332,925 £778,488 £1,054,125
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