F&C_National_Housing_20Market_Update_December_2020

DECEMBER 2020 NATIONAL HOUSING MAR K E T U PDATE

KEY STATS ENGLAND AND WAL ES £712,000 £1,078,520 7.85% £616 £36.3bn 12,396 MORTGAGE APPROVALS LATEST DATA QUARTERLY CHANGE ANNUAL CHANGE RESIDENTIAL TRANSACTIONS GROSS MORTGAGE LENDING 97,532 135.0% 51.1% NEW HOME STARTS (QT) 105,630 55.7% 8.1% NEW HOME COMPLETIONS (QT) £21.5 bn 24.5% -0.2% -52.0% 12,950 -54.4% -59.2% 14,050 -62.2% 2 I PREMIUM MARKETS I NATIONAL

MARKET OVERVIEW 2S0T1A8Y -S ATHF EE TYHE IASRC THHRAI STT MWAASS A20lt2h0ouisghdrtahwe ifnegsttivoeaseclaossoen, aisnuupnopnreusc,etdheenreteids lyitetlaersienahsoisntoalrcyhaenedr aonnde‘ginoowdhwichill to all’ ethviedehnotuascinrgosms athrkeeptohliatsicayleatraegnaai.n Bprreoxvitedcointstinreuseilsietnocdeo. Hmoinuastee pthreicehegardolwineths ahsasall eyes aswtraeint gththeefinneadl oouvetcrotmhee.cWouhrsaeteovef rthteheyecoarncalcursoiosns ,bthoethrethareemsuarinesttorebaemimanpdlicpatriiomnes for smtearrlkinegtsa,nwditthheaerceocnoordmny.uAmsb2e0r1o8f dsaralewssintoparocgloresses, aforer wtheisatnimy ecloosfeyretaor. predicting what we can expect in 2019? AN UNPRECEDENTED YEAR Index and Rightmove both reported an uptick in demand during the first week of Lockdown 2 across England. Rewind a year and the country was waiting with bated breath Across the UK prime markets, the average price of property tGo LseIMe wMhEoRwSoOuldFoSccEuApySONuNmAbeLr C10HfoErECRhristmas, after the SOaissBsdeEotRws 2nS0aP18fEraNhcatsDionnIoNotnpGraoyveeadr ago. However, across many 1tAtldhTahhsaehtietyrevmredJesopaataunresrndigutloderoahaructforiaattgyCuniyg,oftdorlilentoi2vs’ldsomt0iind,,bw1t-ahajt8dulhctaloesheskntvamokoeBlfuseiilnavnssgtneahotovkthyoefwteeohdlcuiafeotamrhhEgnsbeenes.faaungisEncdlmduaakalianrcdlneo.rdtreroiopescisepnsoshdswnoatiehcsfifataedlssotteeeohtwenosoncbepmueersB.ooibncrfrHeuugttxytgohmeiafewtrrgaosaeerlmgivkpeeenrdt,doaw. n momentous. In the year to the approvals in October were 4% higher than a year ago, while Agaeinndstothf eNboavcekmdbroepr tohfeaarveesrilaiegentphroicuesoinfggmoladrkheats, ftahlleen by Tthhee timotpaalcvtaoluf etheofCleonviddi-n1g9 hpiatnidtsemhiigchheasstrmesoulntethdlyinfiagyueraer sliikneceno Chaonvceerll1o%r’s, tshpeesntdoicnkg mreavriekewt o(FnT2S5Eth10N0)ovbeym6b%e,rwmhialedethe S&P oththeesr,uarngde oinnetrwanhsicahcthioasnismppraioctredtootuhrelivinestraondduhcotiwonwoefutsheeour sobGerlorbeaaldLinugx.uCryovInidd-e1x9 ihs a5s.5c%aulsoewdetrhteheancoanoyemayr atogos,hdreinskpite haodmdietisosniganlif3ic%anStlDy.L‘GTalredveyn’inhaMs aprrcohve2d0t1h6e. mMoostrepospaulelasrtsoeoarkch eCtbuhxnyreeti1fiwfpMseomm1inusnara..e3rpsiindtcChi%lioywohndiognayglcithennsmhooefeetoiomisrfe.snrftnpyumah2mterene0eiaadcdo2nrnef,r1utgctdewariolc–atlpcvoiiostpletrshuarhaoirrcsgtenpiphetrcmuyeedhasbrpibercgttlsohieniohceerftbesorbtm,soferiowteneaaervssacirttiitnthdnhohioncceew2gpienaMy.ri6lcsnotcameshgomsruepcaoampiheltlfGlplmcirppowolteoeoiinrtvicbnltselot(itatoah7-rivlnvu.ed5eFtedplh%pnihnerdtdia)mgehioernhtebmraucsysniraaanylnnsd.d tpelramceacarcorsosstshtehheoUusKinginmOarckteotbtehrrotuhgahnoiunt a2n0y20m; ‘odnettahchsiendc’,e‘rJuurlyal’ a2n0d1‘7se, cwluhdileedR’ aiglshotmmaokveeitdianttao sZhooowplsa’ps rtooppe1r0tileisst.iWn 2it0h1284%toof and the introduction of a successful vaccine programme will tdhaetewohrakvfeortcaekceunrraenntalyvewroargkeinogffr6o1mdhaoysmfero(OmNthS)e, asntadrmt oanfy pmreadrikcetitninggthtaot ba efuinll-gtismoeldr-estuubrnjetcot-tthoe-cooffnicteraicstu, nolnikeelyd,aaydditional undAouCbtReYdlySTaiAd LecBoAnoLmLic recovery. As it stands, the Office ssphaocretecorntthinaunelsatsot ybeaar parniodriatny, wimitphrloavrgeemr ehonmt oesnsteheein6g5thdeamysost swigintnifiecsasnetdrisine i2n0i1nt6e.rest. for UBnusdugreptrRisiensgplyonalslibcuilirtryefnotrfeocraesctatshtsefeocro2n0o1m9yarweililsgsuroewd wbyith 5.5%a coavveerat2r0e2l1atainngdto6.6a%deinal2b0e2in2g, tbhreokcoeruendtrbyestewteteonrethtuerUn K Despite the rise in the UK base rate in the summer, to parned-pthaendEeUm. iTchleevGelsovbeyrnQouraorftetrhe4 Binan2k02o2f .EInngfllaatniodn, Maanrdk inteCreasrnt erya,theassarreeitfeorraetceadsthtisoforermecaaisnt ltohwat. in the event of a no- AamtCo2r.T2tg3IaV%geEthinAetecUruerTsrteUnratMtaevsNerreamgeaimn olorwtg. aUgeKinFtinearenscterraetepoisrtlotwhaetr deal Brexit the economy may fall by over 8% and average Arwttrehheciceastthopnivperpitdacthrsystoeti.vapTyerceealhrytaroe.etrs,iAnesbpusdootmhjstsueheistblitlvhfieiinnevorggeuon(fseafosinnowsragdlsdilnemtfflSseoaaTnratrCgikhyoree)oentauie,nrtwsdhsejauihwasgsogeaatolussd4,t9uh3ufiap.mn1dva45aenny%0crsh%ie,saa1sensi.5nndsedOo6tav.c1ynets1ero%wber faster than a year ago, according to Rightmove. It is estimated house prices by up to 30%. Current forecasts from the oSvEeNr 1S0E5,A00N0 DtranSsEaNctiSoInBsILcoITmYpleted in October, the highest WOHfAficTe fWor BILuLdgeTtHReEspNonEsiWbilityYpEoAinRt toBeRmINploGym? ent levels mSeonnstibhlley fpigriucrinegsrinecmeaMinasrccrhu2ci0a1l 6to(parcihoirevtoingthaesianlter.oTdhuection of continuing to rise in 2019, along with average earnings, while tahveer3a%geSaDskLiTngsuprrcichearogfea), parnodpueprty8.1fe%ll byeya1r-.7o%n-iyneaNro(vHeMmRbCer),. MthoerltagraggeestaNpporvoevmalbserremfalal isninrcoebu2s0t1, 2waitchcogrrdoisnsgmtoortgage Rigihntflmatoioven aisssperretdsicthteedretoareedcguerbreanctklyto65th0e,0g0o0vmeronmreehnot’sm2e.0% lReingdhitnmgoavteit, swhhiigleheasntnlueavlehl osiunscee pthriecehogruoswintghmhaarskmetoednetrearteedd ltohcrkoduogwhonuitntMhearycehar(.BAannnkuoafl Ehnogulasendp)r.icDeegsrpoitwetthheacarvoasislatbhielity purtcahrageset.sTinhitshme apyipweleinllerethqaunirea ayegarradaguoal, raisebuinyeinrtsesresetkrates, oUfKfeiwn ethremyoeratrgatogeSpeprotedmucbtesrawcraoss3s .t5h%e, mdoawrknetfprolamce4, .a6t%2.a12% tyheearavaegora,gaeccmorodritnggagtoe rthateeoisffihcisatloUriKcaHllyoluoswe,ParnicdedInedmeaxn. d levels to maltahkoeutghhetmheoscturorfepnrtovpieewrtyisttahxaattitohne sbaavsiengrsatbeewfoirllerise to rAevmearaingehipgrhi.ceTsheacNroAssELAornedpoonrtretmheainnusmligbhetrlyolof pwreorsptheacntivae byeuayrerasgop,etrhbercaanpcihtarlecaucrhrendtlaynfeaevelinraggteheofb4r5u1n,ttohef Bhrieghxietst ever thejuMstar1c.5h –311s.t7d5e%adblyin2e0. F2o1r. thcoming changes to capital ruenccoerrdteaidntfyo. r the month of October. The Dataloft Demand gscuaarpincLcAisthoocaatmnrla.rodgmxTsoeshaenefntn.rhdotuAeamnftnohoaronrAasvsuopwesevrirenxeialrpgrgasaeerembceaoltaesafrtlphqkisnoeueudtre,weicmsaphtisdipeaoepsnanercedrtraeUsintn2Kigtpn0rmf1atoec8harst,eeerimvkcnfioaettaystrnitsmytasocwproorhofeausadtstpi2wcteht%isrellfporrimce hapgpreonwttoh athceromssatrhkeetUpKoswtiMll baerc2h.,2w%itdhumrinagny20ca1l9lin. gInfor an extceonmsiopnartisootnh, ethsotsaemcpodmumtyehnotaltidinagy odnuethteo Lthoendnounmmbearrkoeft saleasnctiacuipgahttein20th1e9 cmoanyvewyealnl cpirnogvperoancoesths.eAr yceoanrsoefnsfaulslinogf indeppriecensd.eCntofmorpeocuanstds gsruogwgethstsacprroicsse tghreowUtKhiswailnl tsiocfipteanteodvteor thebceoiunrsteheorfe2g0io21n, owfit1h1%str–on1g4e%r coavpeirtatlhgeronwextthfievxepyeecatersd. to rFeotruercnasints2f0o2r2L.ondon vary widely, from less than 5% to over 10%. Only time will tell which trajectory is more likely to be tr ue. PREMIUM MARKETS I NATIONAL I 3

REGIONAL P R E M I U M M A R K E T S : TOP 5 % £425,000 £352,000 £580,054 +0.9% £469,858 £309 +4.0% £240 £475,000 £628,351 £416,000 +0.7% £562,046 £316 +3.6% £284 £391,000 £506,446 £441,000 +5.5% £578,427 £273 +2.7% £277 £608,000 £840,700 £831,000 £700,000 +5.6% £948,404 £403 £1,180,220 +3.8% +7.2% £469 4 I PREMIUM MARKETS I NATIONAL £492 £1,550,000 £2,547,002 +12.7% £1,275

NATIONAL P R E M I U M M A R K E T S : TOP 5 % PROPERTIES SOLD ABOVE THE ENGLAND & WALES PREMIUM PRICE THRESHOLD 10% 7.5% The premium price threshold is 5% the value over which the top 5% 2.5% 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. 0% -2.5% NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT 2019 2019 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 Source: Dataloft, Land Registry BY PROPERTY TYPE OVER THE ENGLAND & WALES LAST 12 MONTHS, PROPERTIES £1,600 SOLD ABOVE THE PREMIUM PRICE THRESHOLD £1,200 £1213 £800 An individual premium price threshold is calculated for each £677 £616 property type based on sold prices in the last 12 months. The £509 £504 chart shows the average price paid per square foot for all of these premium properties. £400 0 SEMI-DETACHED DETACHED ALL PROPERTY FLAT/APARTMENT TERRACED Source: Dataloft, Land Registry PREMIUM MARKETS I NATIONAL I 5

TRANSACTIONS AND KEY PRICE POINTS ALL PROPERTIES SOLD ACROSS ENGLAND & WALES All proper ty £1m+ THE COUNTRY 10% Chart shows a rolling 12 month change in transactions compared 0% to the previous 12 month period for all properties and those -10% priced at £1m or over. -20% -30% -40% OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP 2019 2019 2019 2020 2020 2020 2020 2020 2020 2020 2020 2020 Source: Dataloft, Land Registry £234,572 £214,177 £182,874 £712,000 £750,180 £582,778 £1,078,520 £1,246,769 £944,828 £221,861 £361,192 £238,869 £558,057 £903,362 £703,109 £774,661 £1,321,090 £1,045,136 6 I PREMIUM MARKETS I NATIONAL

NATIONAL MAINSTREAM MARKET ALL PROPERTIES SOLD ACROSS ENGLAND & WALES THE REGION 2.5% Rolling 12 month change in the average price paid for all 2% properties sold compared to the previous 12 month period. 1.5% 1% 0.5% 0% NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT 2019 2019 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 Source: Dataloft, Land Registry BY PROPERTY TYPE OVER ENGLAND & WALES THE LAST 12 MONTHS OF £400 ALL PROPERTY SALES £300 £323 Average price paid per square foot for all property transactions. £277 £235 £246 £200 £204 £100 0 TERRACED SEMI-DETACHED DETACHED ALL PROPERTY FLAT/APARTMENT Source: Dataloft, Land Registry PREMIUM MARKETS I NATIONAL I 7

AVAILABILITY A N D TIM E TO S E L L AVERAGE NUMBER OF DAYS NATIONAL TO SELL 100 Average number of days from when a property is first 88 marketed on Rightmove to 83 when the estate agent marks it as “sold subject to contract”. 75 62 62 64 67 71 76 73 62 67 61 50 53 50 49 25 0 AUG SEP OCT NOV DEC JAN FEB MAR APRIL MAY JUN JUL AUG SEP OCT 2019 2019 2019 2019 2019 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 Source: Rightmove PROPERTIES AVAILABLE TO NATIONAL BUY PER AGENT 50 Average stock per agent calculated by the average 40 number of properties an agent has on Rightmove each day 30 across the month. 20 10 0 AUG SEP OCT NOV DEC JAN FEB MAR APRIL MAY JUN JUL AUG SEP OCT 2019 2019 2019 2019 2019 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 Source: Rightmove T: +44 (0)1284 718822 Disclaimer :This repor t is produced for general information only.Whilst ever y effor t has been made to E: burystedmunds@fineandcountry.com ensure the accuracy of this publication, Dataloft Ltd accepts no liability for any loss or damage of any W: fineandcountry.com 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. dataloft.co.uk Repor t edited by Inform user and published on 01-12-2020. 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.