Savills Norfolk Home Truths

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Savills Norfolk Home Truths Savills Norfolk Home Truths Tuesday 27 April 2021 Welcome and thank you for joining. You are on mute for the duration of the webinar. We will begin shortly. 1 Welcome Andrew Perratt Kirsty Bennison Natalie Howlett-Clarke Head of Country Residential Joint Head of Residential Research Residential Norfolk [email protected] [email protected] [email protected] 07967 555 402 07581 422 192 07967 555 755 2 Q&A Panelists Ben Rivett Tim Phillips Joint Head of Country House Residential Norfolk Department [email protected] [email protected] 07807 999 008 07870 867 218 3 Residential Market Update Kirsty Bennison, Savills Research 4 Anything but normal in the housing market 1st modern-day recession where the economy Low preceding and housing price growth, market have ultra-low interest moved in rates different March Resulting in a directions transactions market driven by more than those with double the financial security previous year rather than those and highest exposed to the For whom a Annual house Government since July 2004 economic fallout reassessment of price growth intervention on housing needs running at +5.7% jobs, earnings and priorities to end of March and stamp duty has essentially according to the provided a overridden Nationwide safety net economics Source: Nationwide, HMRC and Bank of England 5 Looking at market activity across Norfolk Sales agreed New Instructions 60% 55% 54% 50% 44% Q1 2021 v Q1 2020 40% 40% 36% 34% 33% 30% +43% 20% Sales agreed 10% +5.5% £2m+ country houses+ 3% Q1 2021 v Q1 2020v Q1 2021 0% -4% -2% -10% -8% -10% -9% -20% -16% -17% New instructions -30% King's Lynn South Breckland Great Broadland Norwich North and West Norfolk Yarmouth Norfolk Norfolk Source: Savills Research using TwentyCi 6 £313k North Norfolk £293k South Norfolk £291k Broadland £274k King’s Lynn and West Norfolk £263k Breckland £243k Norwich £202k Great Yarmouth Source: Savills Research using Land Registry 7 Average Number Ward name value of sold transactions Brancaster (King’s Lynn and West £781k 38 Norfolk) Burnham (King’s Lynn and West £721k 36 Norfolk) Glaven Valley £557k 40 (North Norfolk) High Heath £483k 48 (North Norfolk) Docking (King’s Lynn and West £474k 28 Norfolk) Rockland £472k 26 (South Norfolk) Priory £469k 74 (North Norfolk) Great Witchingham £438k 31 (Brodland) St Benet £406k 31 (North Norfolk) Tasburgh £402k 21 (South Norfolk) Source: Savills Research using Land Registry 8 Annual prime property price movements (to end Q1 2021) -0.3% +6.8% +3.6% All Prime Coastal Norfolk London +8.8% Urban £2m+ +5.8% Country Norfolk Houses +6.4% +5.1% +5.3% All Prime Norfolk Wider South Regional Villages/ Rural Source: Savills Research 9 Drivers of demand Now Prior to Covid-19 60% Greater commitment to move in the short, 50% medium & longer term 40% Working from home, 30% WiFi and 55% garden/outside 48% space are key 20% 37% priorities 28% 10% 17% Proportion of respondents who ranked as 1 or 2 1 ranked respondentsas who of Proportion 15% Suggests demand is 0% likely to remain strong Park/Open Family Shops/ local Transport Schools Place of throughout all of this space amenities connection work year and into next Source: Savills Research Client Survey March 2021 10 Prime market outlook 1• Activity levels mean a supply demand imbalance in the spring and early summer • Search for more inside and outside space likely to continue throughout 2021 2• especially as the experience of lockdown will drive more upsizing and relocation 3• Confidence will also be boosted by the rollout of the Covid-19 vaccines • A prolonged period of low interest rates underpins the capacity for price growth 4 over the medium term 5• Tempered by the potential for an increased tax environment Source: Savills Research 11 Prime house price forecasts 2021 2022 2023 2024 2025 5-year Prime Wider South of +21.6% England +5.5% +4.0% +4.0% +3.0% +3.5% Prime Regional +20.5% +5.0% +4.0% +3.5% +3.0% +3.5% Source: Savills Research Note: These forecasts apply to average values in the second hand market. New build values may not move at the same rate. 12 Thank you © Savills 2021 Local Market Update Natalie Howlett-Clarke – Joint Head of Residential Sales, Savills Norfolk 14 Our market Buyer Sales Multiple Guide price Buyers from registrations agreed offers achieved London +178% +129% 63% 101% 16% Source: Savills Data, 2020-2021 15 Our market 2020 - 2021 • Record under offer book coming into 2021 • 31% more viewings carried out than last year • 3.1 million hits on Savills website per month in January and February 2021* *Source: Google Analytics, 1 Jan 2021 – 28 Feb 2021 16 Sold properties across Norfolk Wighton Guide £550,000 131% of guide price achieved Thetford Guide £595,000 101% of guide price achieved Norwich Guide £895,000 95% of guide price achieved Carleton Rode Guide £1.65 million 98% of guide price achieved Source: Savills 2021 17 Case study – Castle Acre • Launched in mid-November 2020 • 19 viewings took place in 12 days • 8 offers received • Last Best and Final Offers of 2020 • Achieved 107% of guide price Source: Savills 2021 18 What does your money buy What does your money buy you in Norwich? you in London, SW11? • Guide £640,000 • Guide £700,000 • Sizeable town house • Apartment • 4 bedrooms, 2 receptions, 3 bathrooms • 2 bedrooms, 1 reception, 1 bathroom • 2,352 sq ft • 795 sq ft • £272 per sq ft • £881 per sq ft Source: Savills 2021 19 What do you get for £1 million? Walpole St Peter • Magnificent Grade II listed Elizabethan house • Six bedrooms • Four bathrooms • 7,005 sq ft of accommodation and outbuildings • 3.07 acres of gardens and grounds Source: Savills 2021 New Instructions And coming soon to the market Source: Savills 2021 21 Thank you © Savills 2021 Q&A 23.
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