MAY 2021
YO R K S H I R E A N D T H E H U M B E R M A R K E T U P D AT E
KEY STATS Y OR K S HI R E A N D H U M B E R S I D E
£460,000
£610,643
11.05%
£299
£1.86bn
161
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 YORKSHIRE AND HUMBERSIDE
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 continues to linger. Rhetoric has beenProtective more positive in recent weeks; nowroadmap all eyes to are on of supply underpinning price growth. measures are easing as the 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 proving highly successful. Continued economic There wasand positive economic news in the Budget: eight support packages, announced the government in the years of economic growth, 3.3 by million new jobs since 2010 March Budget,more wereforecast a welcome boost, the at with 800,000 by 2023, andsupporting wage growth economy it reopens Consumer confidence is at its its highest as level in nearlyfully. a decade. Independent forecasts from thelevel Office forthe Budget (OBR) also highest since startResponsibility of 2008, the PwC index predict inflation fall at back the of government’ s target 34 points highertothan thetostart the pandemic. UKof 2% over the course of 2019. However, sales volumes business confidence in the service and manufacturing sectors remain low,strongest albeit down 0.7% since acrossNovember Yorkshire and was at its leveljust in April 2013the Humber in theThe twelve to June compared a year (IHS Markit). latestmonths forecasts expect the UK to economy earlier. After a brief reprieve over the number to return to its pre-pandemic levelthe by summer the summer of of mortgage approvals across UK has also slowed. 2022, six months quicker thanthe previously anticipated.
Unemployment is setacross to peak at 6.5%, lower House price growth much of theconsiderably UK is slowing, and than earlier forecasts of 11.9% (OBR). Interest rates remain Yorkshire and the Humber is no exception. Annual house low and although approvals slightly price growth in themortgage year to August (UKdipped HPI) was 3.7%, in April to their lowest level since last August, in excess market down from 4.4% a year earlier. Across the prime of 82,700 loans werewas approved, than annual price growth just 0.8%over over20% thehigher past year. the long term (5-year) monthly average (Dataloft, Bank of England). The extension of the stamp duty holiday and BUDGET WINNERS AND LOSERS the introduction on April 1st of 95% government-backed mortgages were welcomed the property Housebuilders and first-timeby buyers were thesector. main real estate beneficiaries of the Autumn Budget. As the government aims to meet its ambitious 300,000 new homes RECORD-BREAKING per year target, a range of initiatives were announced. Additional monies totalling £500 million Housing Spring is traditionally the busiest time offor thethe year for the Fundand to deliver homes, newIn Investment housing market 2021 is650,000 already new setting records. partnerships removal the March, morewith thanHousing 190,000Associations, property sales were of recorded revenue cap for local councils and a business-backed and mortgage lending exceeded £35.6 billion, record highs guarantee forand SME builders are all respectively. in the pipeline. according scheme to HMRC Bank of England As too is large-scale infrastructure investment and moves to Demand levels in March were 34% higher year-on-year reinvigorate the high street, with proposals to allow (Zoopla) and 23% of homes were sold ‘sale agreed’ within conversion of unused retail toInstitute residential and changes one week (Rightmove). Theunits Royal of Chartered 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
Surveyors report the sales rate per surveyor in March was at its leveluntil since summer of 2014, behighest extended thethe end of March 2023, with with the the salesvalue of to-stock ratio at its strongest in over 17 years. Momentum the loan subject to a new regional cap. Across Yorkshire continued April,the Rightmove reporting properties selling and theinto Humber cap will be £228,100. Based on an faster in the first two weeks than at any point in its history. analysis of new build property sales over the past year 61% Although is on rise, this first-time is failing tobuyers. keep would valuation have beenactivity available to the prospective pace with demand, resulting in strengthened price growth. The SDLT relief introduced for 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 FUTURE DIRECTION shared property since 22nd November 2017 will also be Annual price growth across the UK is at its able property to claim the relief retrospectively. strongest in over six years, with price growth in Yorkshire The government is also going to consult on reforms to and the Humber currently 10.9%, compared to 3.2% a year lettings relief which looks set to impact on many so-called ago (UKHPI). Nationwide report average prices in the ‘accidental’ landlords. Non-resident buyers will face a 1% UK have risen 2.1% between March and April, the largest additional SDLT surcharge over and above all other costs. month-on-month increase recorded since February 2004. Although this is yet another tax rise, it is less than the 3% Agents are reporting the strongest sentiment towards price indicated by the government earlier this autumn. growth between April and June since the summer of 2015 (RICS). Premium markets are currently outperforming the THEmarket; VALUE general eightOF outPRIME of ten regions in England and Wales are HM seeing growth of over 10%. Treasury netted £310 million in stamp duty receipts (SDLT) from Yorkshire and the Humber in the year to the
endPRIME of MarchMARKETS 2018, up 12.7% on a year previously, aided by THE a rise in sales volumes of 4.7%, the highest rise of any region Prime property priceone growth in Yorkshire and the Humber is in England. Over fifth (23%) of receipts were attributed currently withofprice growth strengthening over recent additional properties, with £100 million to the 11.1%, purchase months. for a prime market property raisedThe fromaverage the 3%price additional levy alone. Over one quarter exceeds £500,000 in six areas of thereceipts region; were the price in York (27.4%) of all residential taxation attributable to properties purchased for over £500,000, 6.5% to is close to £750,000 and in Harrogate over £1 million. Higherproperties purchased over £1 million.months. Across value homes have provedfor popular in recent England, more than 54,000 homes sold for over £500,000 The average price for prime market property exceeds during the first three months of 2021, the highest quarterly £500,000 in half of the main cities/towns across Yorkshire figure ever recorded. These buyers have benefitted from a and the Humber. The prime markets across Sheffield and £15,000 saving, thanks to the stamp duty holiday (HMRC). Rotherham are currently experiencing the highest level of price growth, average prices of prime property have risen by 7% over the past year.
PREMIUM MARKETS I YORKSHIRE AND HUMBERSIDE 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
£686,000 £686,000 £938,080 £938,080 +15.3% +15.3% £435 £435
£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 +16.0% +11.1% +17.2% £517 £517 £501
44 II PREMIUM PREMIUM MARKETS MARKETS II YORKSHIRE NATIONAL AND HUMBERSIDE
£1,550,000 £1,550,000 £2,508,438 £2,508,438 +6.4% +6.4% £1,180 £1,180
TOP 5% Y OR K S HI R E A N D H U M B E R S I D E P R EM I U M M A R K E T
£834,000 £1,108,855 +11% £388
£464,000 £608,869 +11% £330
£388,000 £499,583 +12% £288
£394,000 £537,287 +16% £239
£437,000 £565,727 +5% £279
£283,000 £352,182 +10% £203
£565,000 £743,837 +12% £318
£339,000 £443,887 +14% £205
£479,000 £630,784 +8% £318
£320,000 £403,260 –4% £230
PREMIUM MARKETS I YORKSHIRE AND HUMBERSIDE I 5
TOP 5% Y OR K S HI R E A N D H U M B E R S I D E P R EM I U M M A R K E 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.
YORKSHIRE AND HUMBERSIDE
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.
YORKSHIRE AND HUMBERSIDE
£400
£360 £324
£300
£271
£291
£299
£200
£100
0 FLAT/APARTMENT
TERRACED
SEMI-DETACHED
DETACHED
ALL PROPERTY Source: Dataloft, Land Registry
6 I PREMIUM MARKETS I YORKSHIRE AND HUMBERSIDE
MAINSTREAM Y OR K S HI R E A N D H U M B E R S I D E M A I N S T R E A M M A R K ET
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
YORKSHIRE AND HUMBERSIDE
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
YORKSHIRE AND HUMBERSIDE
Average price paid per square foot for all property transactions.
£320
£240
£233 £160
£186
£180
£179
£142 £80
0 FLAT/APARTMENT
TERRACED
SEMI-DETACHED
DETACHED
ALL PROPERTY Source: Dataloft, Land Registry
PREMIUM MARKETS I YORKSHIRE AND HUMBERSIDE I 7
KEY STATS Y OR K S HI R E A N D H U M B E R S I D E
£170,159 £460,000 £610,643
£115,533 £293,690 £402,645
£124,396 £298,689 £395,796
£169,317 £358,363 £455,538
£300,229 £657,036 £861,608
£176,003 £468,552 £623,634
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