THE PROPERTY MARKET - ESSEX, NORFOLK AND SUFFOLK - Property Logic
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
THE
PROPERTY
MARKET
A REVIEW OF THE KEY TRENDS IN THE
NATIONAL AND LOCAL HOUSING MARKET.
ESSEX, NORFOLK AND SUFFOLK
Analysis by Dataloft | Autumn 2020
POST-LOCKDOWN MOMENTUM IN THE SALES ↑3.4% ↓16.3% ↑28.9% ↓62.2% ↓13.6% House Property Mortgage New private homes Gross mortgage prices sales approvals built (completed) lending £237,834 June 2020 vs 81,280 August 2020 vs 84,715 August 2020 vs 14,050 Q2 2020 vs £18.8bn* August 2020 vs £230,049 June 2019 97,110 August 2019 65,704 August 2019 37,200 Q2 2019 £21.7bn* August 2019 Source: dataloft, Bank of England, HMRC, ONS, MHCLG, *Rounded-up figures **RICS Net Balance of Agents reporting an increase The UK housing market starts autumn with momentum, a post-lockdown mini-boom making summer 2020 busier than usual. Summer sunshine A balancing act Looking ahead The housing market has basked in The economy and consumer Properties are selling quicker than a summer sunshine since it reopened confidence have both shown signs year ago, and latest mortgage in June. Buyer demand has soared, of improvement throughout the approvals suggest the market is up 34% on a year ago (Zoopla), while summer. The economy grew by 6.6% returning to more ‘normal’ levels. supply to the marketplace is at its in July (ONS); however, it remains over However, the forced pause in the highest level since March 2008 11% lower than pre-lockdown while housing market will likely mean 2020 (Rightmove). Over 81,000 property consumer sentiment continues to sales levels will be below those of 2019, sales were recorded in August, up rise, albeit slowly. Recovery remains albeit not as low as many feared. UK 15.6% on July, with competition in the cautious as the government grapples house price growth is at its highest market leading to one in eight with balancing the economy and level in over two years and revised properties selling at or above asking public health. Stamp duty holidays forecasts anticipate property prices will price (NAEA). Larger properties and across the nations offer a saving for end the year 2% higher, a significant those with gardens are proving many buyers but although interest reversal to the negative expectations immensely popular, the impact of rates remain low, a reduction in high anticipated as the market reopened. COVID-19 set to have a lasting change loan-to-value lending products is Interest rates are predicted to be held on our home/work lifestyles. impacting on first-time buyers. at 0.1% until 2022. 2 | ESSEX, NORFOLK AND SUFFOLK HOUSING MARKET UPDATE Autumn 2020
MARKET
LETTINGS
↑1.5% ↑49% The housing market
Average
rents
Tenant
demand
is busier than many
August 2020 vs
August 2019
August 2020**
expected as we head
into the autumn,
homeowners keen to
fulfil lifestyle changes
following the COVID-19
Rental market
lockdown. Opportunities
As with the sales market, demand in the rental
sector increased over the summer, although exist to make savings
new instructions remain muted, a continuation
of the pre-lockdown trend. Average rental values
on purchases thanks to
across the UK rose by 1.5% in the year to August,
and yields remain attractive. Increased demand
government property
and a shortage of supply in many areas should taxation incentives, but
with sales needing to
help underpin rental values over the coming
months. Just 13% of tenancies expire during the
final quarter of the year but landlords will be
keen to avoid unnecessary void periods.
complete by 31 March,
prospective buyers should
not delay.
2%
Anticipated
house price IAIN MCKENZIE
CEO, THE GUILD OF PROPERTY PROFESSIONALS
growth in 2020
Source: dataloft, Average of
independent forecasts
Analysis by Dataloft HOUSING MARKET UPDATE | 3TAXATION HOLIDAY WILL
BENEFIT MANY PURCHASERS
In the wake of the COVID-19 lockdown,
savings can be made across the UK
England
£15,000
saving on a
£500,000 home
88%
all sales over past 12 monthsNATIONAL
MARKET CONDITIONS
At 3.4% annual house price growth
across the UK is currently at its
highest level since March 2018.
Price growth is strongest across
the East Midlands and the North
West, but across all regions the
trajectory is positive.
There have been robust levels of
SCOTLAND
2.9%
activity over the summer months,
HMRC estimating volumes in CURRENT ANNUAL RATE
OF PRICE CHANGE
August were just 16.7% lower year-
Less than 2.5%
on-year, compared to over 37% 2.5% – 3.0%
lower in June. Rightmove report 3.0% – 3.5%
3.5% – 4.0%
sales to date in 2020 are just 5% Over 4.0%
lower than 2019, with many areas
Source: dataloft, ONS,
of the UK seeing properties selling UKHPI June 2020
quicker than a year ago.
NORTH EAST
NORTHERN
IRELAND
1.7%
3.0%
NORTH WEST
4.4% YORKSHIRE AND
THE HUMBER
3.3%
Annual change in house prices
and transactions
EAST MIDLANDS
4.5%
10%
0% WEST
MIDLANDS
4.1%
-10% EAST OF ENGLAND
-20%
2.8%
WALES
2.6%
-30%
-40% SOUTH
EAST
2.1%
-50%
SOUTH WEST
-60%
JUL
19
AUG SEP
19 19
OCT NOV DEC JAN
19 19 19 20
FEB MAR APR MAY JUN
20 20 20 20 20 4.3%
House prices Transactions LONDON
Source: dataloft, ONS, HMRC
4.2%
Analysis by Dataloft ESSEX, NORFOLK AND SUFFOLK HOUSING MARKET UPDATE | 5REGIONAL ACTIVITY
ESSEX, NORFOLK AND SUFFOLK
It is estimated nearly two million In Essex, Norfolk and Suffolk,
people own buy-to-let property gross yields in six areas are
across the UK (Resolution Foundation upwards of 5%, Harlow, and
2019), property being regarded as a King’s Lynn and West Norfolk
‘safe-haven’ asset. At 4.7%, the gross are the current top performers.
yield on residential property across
the East of England is attractive.
North Norfolk
AVERAGE
Norwich
Broad
GROSS YIELDS
King's Lynn Norfo
fo
o
olk lan
Less than 4.0% Great
d
and West Yarmouth
4.0% to 4.4%
4.5% to 4.9%
Norfolk
5.0% to 5.4% Breckland South
5.5% and over Norfolk
Source: Dataloft Rental Market
Analytics (DRMA), Land Registry,
MHCLG, contains OS data
© Crown copyright and West
database right 2016 Suffolk
Mid Suffolk East
Suffolk
Su
Suffolk
Babergh
er Ipswich
Uttlesford Braintree st
Essex
ex
x
e
Tend
Colch
ring
Harlow
Ch
elm
n
t g
pi
Ep res
sfo
Maldon
Fo Brent
rd
wo
Rochford
od
c Southend-on-Sea
k
Thurro
Castle Point
Basildon
Average gross yields on residential property are attractive,
with positive rental and house price growth.
6 | ESSEX, NORFOLK AND SUFFOLK HOUSING MARKET UPDATE Autumn 20206.6%
Brentwood
Positive growth
Top for price
growth in Property prices across the East of
this region England were 2.6% higher year-on-year
as the housing market reopened in
Source: dataloft, UKHPI
June. Brentwood and Babergh are the
current top performers in the region,
prices more than 6% higher than a
year ago. Activity across the UK has
been brisk; Rightmove report August
Strongest housing markets across the region 2020 was the busiest month on record,
with a significant rise in the number of
RANK ANNUAL RATE OF AVERAGE sales of large (4+ bedroom detached)
PRICE GROWTH HOUSE PRICE
and 3–4 bedroom properties.
1 BRENTWOOD 6.6% £447,275
2 BABERGH 6.4% £297,453 Number of properties
3 SOUTHEND-ON-SEA 5.8% £296,155 for sale across the UK
4 BASILDON 5.2% £317,160 up 10% year-on-year
5 EAST SUFFOLK 4.6% £249,760 (Zoopla, August).
6 THURROCK 4.4% £276,314
7 HARLOW 3.9% £275,956
Price it right
8 SOUTH NORFOLK 3.8% £268,166
Homes across the UK are selling
9 BRAINTREE 3.7% £289,945 more quickly. Nationally the average
10 MID SUFFOLK 2.9% £269,080 time taken to sell a property fell to
53 days this August, down from
11 KING'S LYNN AND WEST NORFOLK 2.3% £222,123
62 days in August 2019. Sensible
12 BROADLAND 2.1% £267,567 pricing remains crucial; correctly
13 UTTLESFORD 2.1% £402,100 priced properties are nearly twice as
likely to be sold ‘subject to contract’
14 TENDRING 2.0% £223,209 within four months of listing than
15 MALDON 1.7% £343,748 those that have had their asking
price reduced (Rightmove).
16 IPSWICH 1.7% £198,896
17 NORWICH 1.4% £205,871
18 WEST SUFFOLK 1.0% £260,471
19 COLCHESTER 0.4% £262,660
Homes in the East of
England are selling, on
20 CASTLE POINT 0.0% £304,415
average, 11 days quicker
than a year ago.
Source: dataloft, ONS, UKHPI June 2020
Analysis by Dataloft ESSEX, NORFOLK AND SUFFOLK HOUSING MARKET UPDATE | 7'
ABOUT THE
'
GUILD OF
'
PROPERTY '
PROFESSIONALS
The Guild is a UK-wide network
of independent estate and letting
agents. Each of our Members
has been carefully chosen by us,
all agents adhering to our
Code of Conduct.
If you want independent guidance
on moving home or are looking
for the best agent in your area,
visit guildproperty.co.uk
The Guild of Property Professionals
121 Park Lane, Mayfair, London W1K 7AG
020 7629 4141 | parklane@guildproperty.co.uk | guildproperty.co.uk
Analysis by Dataloft
Dataloft is an established property market intelligence Disclaimer: This report is produced for general information
company with a long track record of analysing and only. While every effort has been made to ensure the accuracy
of this publication, Dataloft Ltd accepts no liability for any loss
reporting on the housing market. We are committed to or damage of any nature arising from its use. At all times the
stripping away the mystique of complex data analysis content remains the property of Dataloft Ltd under copyright,
and adding value for clients through interpretation, and reproduction of all or part of it in any form is prohibited
without written permission from Dataloft Ltd.
insight and creativity.
Date of publication: October 2020
dataloft.co.uk | dataloftinform.co.uk Analysis, editorial, design, graphics and charts by Dataloft.You can also read
