National Housing Market Update | May 2021

MAY 2021
NATIONAL HOUSING MARKET UPDATE

K E Y S T A T S
E N G LA ND AN D WAL ES
£764,000 £1,138,269 10.78%
£613 £37.9bn 14,517
LATEST DATA QUARTERLY CHANGE ANNUAL CHANGE
MORTGAGE APPROVALS 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%
2 I PREMIUM MARKETS I NATIONAL

M A R K E T O V E R V I E W
2 0MOMENTUM 1 8 - TH E YE ACONTINUES
R TH AT WAS
A Although year ago, the the festive property season market is upon was us, in there midst is little of seasonal full lockdown; cheer and a year ‘good on will and to the
all’
market evident is across hitting the new political heights. arena. Annual Brexit property continues price to dominate growth is the at its headlines strongest as in all over
eyes
six await years the (UKHPI), final outcome. with sales Whatever activity the and conclusion, mortgage there lending are setting sure to new be implications records, as for the
roadmap sterling and to the ‘normality’ economy. remains As 2018 on draws course.
to a close, are we any closer to predicting what
we can expect in 2019?
RECORD-BREAKING
Over 190,000 property sales were recorded in March
and GLIMMERS mortgage lending OF SEASONAL topped £35.6 CHEER billion, both records
according to the HMRC and Bank of England respectively.
Sales Throughout across the 2018 UK sales were volumes on average across 30% the higher housing during
market
the have first struggled, quarter thanks year-on-year to the backdrop (TwentyCi), of lower breaching buyer a third
of demand a million and for low only levels the of second consumer time in confidence. history. Rightmove
However,
report latest data properties from the sold Bank faster of England in the first indicates two weeks mortgage of April
than approvals
ever previously in October
recorded; were 4%
in higher
March, than
23% a year
of homes
ago, while
were the total
‘sale value
agreed’ of lending
within just hit its
7 highest
days. Consumer monthly figure
confidence
since
the surge in transactions prior to the introduction of the
is at its highest level since the start of 2008, the PwC
additional 3% SDLT levy in March 2016. More sales took
index is 34 points higher than at the start of the pandemic
place across the UK in October than in any month since July
and confidence in UK businesses across the service and
2017, while Rightmove data shows properties in 2018 to
manufacturing sectors in April was at its strongest since
date have taken an average of 61 days from the start of
November 2013 (IHS Markit). Although mortgage approvals
marketing to being sold-subject-to-contract, one day
dipped shorter
slightly than last
in April year and
to their an improvement
lowest level since on the
last 65
August,
days
close witnessed to 83,000 in 2016. new loans were approved, over 20% higher
than the long-term average (Dataloft, Bank of England).
Despite the rise in the UK base rate in the summer,
mortgage interest rates remain low. UK Finance report that
at 2.23% the current average mortgage interest rate is lower
PRICE GROWTH STRENGTHENS
than the rate both five and ten years ago, 3.14% and 6.11%
The respectively. loosening Adjusting of restrictions for inflation, April wages led to have an increase risen over in
supply the past to year, the market, positive and news valuation for household activity finances. is on the rise.
However, as yet, this is failing to keep pace with demand,
property SENSE AND prices rising SENSIBILITY month on month. Nationwide report
the average property has increased by nearly £16,000 over
Sensible pricing remains crucial to achieving a sale. The
the past 12 months; a 2.1% rise in prices between March and
average asking price of a property fell by 1.7% in November,
April is the largest month-on-month increase recorded since
the largest November fall since 2012 according to
February 2004. Based on the current trajectory, annual
Rightmove, while annual house price growth has moderated
growth across the UK will hit double digits by June, with agents
throughout the year. Annual house price growth across the
reporting the strongest sentiment towards price growth
UK in the year to September was 3.5%, down from 4.6% a
between year ago,
April according
and June to the
since official
the UK
summer House
of Price
2015 Index.
(RICS).
Average prices across London remain slightly lower than a
year ago, the capital currently feeling the brunt of Brexit
uncertainty.
Property price growth across the premium markets is currently
outperforming the general market and growth in excess of 10%
has been seen in eight out of ten regions in England and Wales.
Across the UK prime markets, the average price of property
is down a fraction on a year ago. However, across many
HIGH-VALUE assets 2018 has HOMES not proved SOAR
momentous. In the year to the
end of November the average price of gold has fallen by
More over than 1%, 8,300 the homes stock market sold for (FTSE over 100) £1 million by 6%, during while the
S&P
first three Global months Luxury of Index 2021, is the 5.5% highest lower quarterly than a year figure ago, ever
despite
recorded. fine wines Buyers and have classic been cars able boasting to benefit small from positive a saving returns. of
£15,000 Many thanks commentators to the stamp report duty evidence holiday offering pent-up 0% demand property
taxation for higher on purchases priced properties, up to £500,000. with prospective This meant vendors just over a
third waiting (36%) of for all more residential clarity sales before were they subject commit to to tax, their compared
to over purchase. two-thirds (67%) during Q1 2020. The holiday, and
the enforced closure of the market in Lockdown 1, has led to a
£2.3 A billion CRYSTAL fall in residential BALL property taxation receipts to the
Treasury during 2020–21.
Unsurprisingly all current forecasts for 2019 are issued with
a caveat relating to a deal being brokered between the UK
and the EU. The Governor of the Bank of England, Mark
MEETING Carney, has NEEDS
reiterated his forecast that in the event of a nodeal
Brexit the economy may fall by over 8% and average
As competition for property remains high, meeting the needs of
house prices by up to 30%. Current forecasts from the
buyers Office
and for
sellers Budget
in the Responsibility
marketplace point
is paramount. to employment
Capability,
levels
market continuing
knowledge to rise
and in
trust 2019,
are along
considered with average
the most earnings,
important
while
attributes inflation for is home predicted movers to edge when back choosing to the an government’s agent, with less
2.0%
than target. one in This five basing may well their require decision a gradual on the rise agent in interest offering rates, the
lowest although fee (Dataloft, the current Property view is Academy that the 2020). base rate Floorplans, will rise to the
quality just and 1.5 number – 1.75% of by photographs 2021. and a map or street view
are deemed important information for over 90% of buyers.
Broadband Across speeds the housing and ‘green’ market, credentials as per 2018, are many set to move up
the agenda commentators in future expect years, energy the wider efficiency UK market the main to outperform reason
why London.
home movers An average
would of
choose independent
a new build forecasts
property.
predicts price
growth across the UK will be 2.2% during 2019. In
comparison, those commentating on the London market
anticipate 2019 may well prove another year of falling
prices. Compound growth across the UK is anticipated to
be in the region of 11% – 14% over the next five years.
Forecasts for London vary widely, from less than 5% to over
10%. Only time will tell which trajectory is more likely to be
true.
PREMIUM MARKETS I NATIONAL I 3

R E G I O N A L
P R E M IU M M A RK E TS : TOP 5 %
£473,000 £474,000
£641,792
+10.8% +10.9%
£319
£525,000
£693,912
+11.3% +10.3%
£335
£376,000
£501,573
+7.3%
£247
£460,000
£610,643
+10.3% +11.1%
£299
£481,000
£630,186
+10.2%
£291
£419,000
£546,274
+10.8%
£285
£750,000
£1,007,650
+10.0%
£483
£686,000
£938,080
+15.3%
£435
£905,000 £904,000
£1,302,081 £1,301,890
+11.1% +17.2%
£501 £517
£1,550,000
£2,508,438
+6.4%
£1,180
4 I PREMIUM MARKETS I NATIONAL

N A T I O N A L
P R E M IU M M A RK E TS : TOP 5 %
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.
ENGLAND & WALES
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
ENGLAND & WALES
£1,200
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.
£900
£600
£300
£1122
£719
£536 £531
£613
0
FLAT/APARTMENT TERRACED SEMI-DETACHED DETACHED ALL PROPERTY
Source: Dataloft, Land Registry
PREMIUM MARKETS I NATIONAL I 5

T R A N S A C T I O N S
A N D K EY P RI C E POIN T S
ALL PROPERTIES SOLD ACROSS
THE COUNTRY
Chart shows a rolling 12 month
change in transactions compared
to the previous 12 month period.
ENGLAND & WALES All property £1m+
10%
0%
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.
-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
£250,770
£764,000
£1,138,269
£219,579
£739,489
£1,144,217
£193,345
£636,129
£1,017,356
£236,411
£607,468
£841,545
£387,034
£976,553
£1,444,599
£256,703
£768,446
£1,136,162
6 I PREMIUM MARKETS I NATIONAL

N A T I O N A L
M A IN S TR E AM M AR K E T
ALL PROPERTIES SOLD ACROSS
THE REGION
Rolling 12 month change in
the average price paid for all
properties sold compared to the
previous 12 month period.
ENGLAND & WALES
8%
6%
4%
2%
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 OF
ALL PROPERTY SALES
ENGLAND & WALES
Average price paid per square
foot for all property transactions.
£400
£300
£200
£326
£213
£245
£288
£255
£100
0
FLAT/APARTMENT TERRACED SEMI-DETACHED DETACHED ALL PROPERTY
Source: Dataloft, Land Registry
PREMIUM MARKETS I NATIONAL I 7

A V A I L A B I L I T Y
A N D TIM E TO SE LL
AVERAGE NUMBER OF DAYS
TO SELL
NATIONAL
Average number of days
from when a property is first
marketed on Rightmove to
when the estate agent marks it
as “sold subject to contract”.
100
75
50
76
67
61
83
88
73
62
53
50 49
52
57
65
60
51
25
0
JAN
2020
FEB
2020
MAR
2020
APRIL
2020
MAY
2020
JUN
2020
JUL
2020
AUG
2020
SEP
2020
OCT
2020
NOV
2020
DEC
2020
JAN
2021
FEB
2021
MAR
2021
Source: Rightmove
PROPERTIES AVAILABLE TO
BUY PER AGENT
Average stock per agent
calculated by the average
number of properties an agent
has on Rightmove each day
across the month.
NATIONAL
50
40
30
20
10
0
JAN
2020
FEB
2020
MAR
2020
APRIL
2020
MAY
2020
JUN
2020
JUL
2020
AUG
2020
SEP
2020
OCT
2020
NOV
2020
DEC
2020
JAN
2021
FEB
2021
MAR
2021
Source: Rightmove
T: +44 (0)207 079 1515
E: parklane@fineandcountry.com
fineandcountry.com
Disclaimer: This report is produced for general information only. Whilst every effort 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
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Report edited by Inform user and published on 04-05-2021.
Please note, HM Land Registry transaction figures are lower than usual due
to the impact of Covid-19. They are likely to be revised upward.
dataloft.co.uk