Savills Banbury and Stow-On-The-Wold Home Truths
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Savills Banbury and Stow-on-the-Wold Home Truths Thursday 10 June 2021 Welcome and thank you for joining. You are on mute for the duration of the webinar. We will begin shortly. 1 Welcome Charles Elsmore-Wickens Frances Clacy Nick Rudge David Henderson Head of Cotswolds Residential Head of Sales Head of Sales Residential Sales Research Banbury Stow-on-the-Wold [email protected] [email protected] [email protected] [email protected] 07870 999 447 07972 000 186 07968 550 366 07973 122 248 2 Q&A Panellists Louise Nicholson James Walker Head of Cotswolds Country House Department Residential Lettings Cotswolds [email protected] [email protected] 07812 965 329 07968 550 441 3 UK Residential Update Frances Clacy, Residential Research 4 The housing market in a snapshot 1st modern-day recession where Mainstream UK the economy Market driven by annual house and housing those with price growth market moved in financial security +10.9% to the different end of May directions Low levels of price growth Changing prior to Covid-19 lifestyles and & very low priorities interest rates Government intervention April completed including house sales furlough scheme +28% above and stamp duty 2017-19 average holiday Source: Savills Research, Nationwide, HMRC 5 Market activity over £1m (versus average for month 2017-19) Newly Agreed Sales New Instruction 250% 200% 150% 100% 50% 0% Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Source: Savills Research using TwentyCi 6 More locally… Cherwell, Cotswold, South Cherwell, Cotswold, South Northamptonshire, Stratford-on-Avon & Northamptonshire, Stratford-on-Avon & West Oxfordshire West Oxfordshire +46% -17% SSTCs New instructions 5 months to May 2021 vs same period 2019 5 months to May 2021 vs same period 2019 Source: Savills Research using TwentyCi 7 Variation in average house prices £500,000 £496k £450,000 21 - £400,000 £430k £402k £350,000 £357k £355k £300,000 £250,000 £200,000 £150,000 £100,000 Average second hand sale price, 12 months to Janprice, months secondsale12 hand Average £50,000 £0 Cotswold West Oxfordshire Stratford-on-Avon Cherwell South Northamptonshire Source: Savills Research using Land Registry 8 Source: Savills Research using Land Registry 9 Prime price movements All prime UK (excluding London) Prime Banbury and Stow-on-the-Wold & surrounds 20% Annual 15% growth 10% 5% +5.1% 0% All prime UK (excluding London) -5% Annual price movement priceAnnual -10% +3.4% Prime Banbury and -15% Stow-on-the-Wold & -20% surrounds Source: Savills prime regional index, Q1 2021 10 Prime Banbury and Prime Banbury and Stow-on-the-Wold & Stow-on-the-Wold & surrounds surrounds Under £1.5m £1.5m+ +3.3% +3.4% Annual growth Annual growth Source: Savills prime regional index, Q1 2021 11 Looking forward 1• Activity levels mean a supply / demand imbalance will persist into the Autumn 2• Search for more inside and outside space likely to continue throughout 2021 3• …especially as the prolonged experience of lockdown will drive more upsizing 4• And we may see some slight rebalancing between town and country markets 5• A prolonged period of low interest rates underpins capacity for price growth 6• But this may be tempered by the potential for an increased tax environment Source: Savills Research 12 New prime forecasts 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. 13 Prime rental markets 14 Similar trends in the prime rental market Increased More try Strong demand tax & before you for family regulation buy tenants houses Sharp rise in Tenants seeking applicant more inside and numbers outside space More demand Best in Strong from Londoners sales class market favoured Source: Savills Research 15 Leading to anoutperformance beyond London Source: Savills prime lettings indices, Q1 2021Q1 indices,lettingsSavillsprimeSource: Annual rental growth -6% -4% -2% 0% 2% 4% 6% Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Prime London Prime Dec-16 Mar-17 Jun-17 Sep-17 regionalPrime Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 16 Regional rental Regional rental values - houses values - flats +5.6% +2.8% Annual Annual growth growth Source: Savills prime lettings index, Q1 2021 17 New prime rental forecasts Source: Savills Research Note: These forecasts apply to average rents in the second hand market. New build rental values may not move at the same rate. 18 Thank you © Savills 2021 Local Market Update Nick Rudge – Head of Residential Sales, Banbury 20 Our markets in Banbury and Stow-on-the-Wold Buyer Sales Multiple Guide price Buyers from registrations* agreed* offers** achieved* London** +86% +64% 70% 100% 31% *Source: Savills data, Jan – May 2021 v Jan – May 2019 **Source: Savills data, Jan 2020 – Apr 2021 21 ‘Banburyshire’ • Schools • Transport • Formula 1 • Soho Farmhouse Soho Farmhouse image source: The Telegraph 22 SOLD properties in Banbury Woodend, Northamptonshire Guide £875,000 Horley, Oxfordshire Guide £1.1 million Aynho, Northamptonshire Guide £2.95 million Swerford, Oxfordshire Offers in excess of £4.75 million 23 Case study: Swerford, Oxfordshire • Windy Hill Farm • 160 viewings over 3 weeks • Guide £550,000 24 New instructions Coming soon… Birdingbury Plumpton Little Wolford Hornton Barford St. John Swerford 25 Thank you © Savills 2021 Local Market Update David Henderson – Head of Residential Sales, Stow-on-the-Wold 27 North Cotswolds • ‘Daylesfordshire’ • Stunning villages • Beautiful countryside • Sports • Transport links • Great schools • Lifestyle • Architectural 28 Our market 2019 - 2021 • 99% of guide price achieved • +111% more sales agreed • +128% more buyers registered YTD • Country and town markets are robust, with increasing numbers of instructions Source: Savills data, Jan – May 2021 v Jan – May 2019 29 SOLD properties in Stow-on-the-Wold Sykes House, Halford Guide £1.8 million 94% of guide price achieved Maces Farmhouse, Wyck Rissington Guide £5 million 90% of guide price achieved Flat, Sherborne House, Sherborne Guide £1.1 million 95% of guide price achieved Rosedale, Chipping Camden Guide £1.1 million 100% of guide price achieved 30 What do you get for... £1 million? Orchard House, Little Rissington • Recently refurbished • Great condition • Elevated village location • Four bedrooms • 2,312 sq ft • Close by two market towns 31 New instructions Coming soon… Bourton-on-the-Hill Guiting Power Alveston Great Rollright Dorsington Blockley 32 Thank you © Savills 2021 Q&A 34.