Savills Shropshire & Staffordshire Home Truths

Home , Kinlet, Shropshire, Staffordshire

Wednesday 28 April 2021

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1 Introducing today’s panel

Tony Morris-Eyton Faisal Choudhry Peter Daborn Beccy Theodore-Jones Rosie Rickett

Head of Telford Residential Residential Residential Residential Residential Research Sales Sales Sales

[email protected] [email protected] [email protected] [email protected] [email protected] 01952 239 532 01952 239 510 0141 222 5880 01952 239 511 01952 239 534

2 Residential Market Update Faisal Choudhry Residential Research

3 2020 anything but a normal housing market

1st modern-day Resulting in a recession where market driven by the economy those with and housing financial security market have rather than those moved in Government exposed to the different intervention on economic fallout directions jobs, earnings and Stamp Duty and a Low preceding benevolent price growth, approach to For whom a ultra-low interest mortgage reassessment of rates and early repayments housing needs expectations of a and priorities sharp V-shaped essentially recovery overrode marked it out as economics different

4 Exceptional market performance

West Midlands market activity between June 2019 and March 2020 compared with June 2020 to March 2021

Net agreed sales Price reductions 120%

100% 110% 111%

80% 79%

60%

Mar 2021 -

40% 46%

Mar 2020 versus Mar 2020 versus - 20%

Jun Jun 2020 17% 14% 14% 15%

0% 0% 9% Jun Jun 2019 -7% -20% -31% -40% Under £100k £100k-£200k £200k-£300k £300k-£500k £500k-£1m Above £1 million

Source: Savills Research using TwentyCi 5 Sales agreed between June 2020 and March 2021 versus June 2019 and March 2020 Staffordshire 37%

Birmingham area 27%

Shropshire 55%

Warwickshire 41%

Herefordshire 52%

Worcestershire 40%

Source: Savills Research using TwentyCi 6 The movers and the stickers

87% 1/3 51% 55% 44%

of those in The proportion of of those living in medium/ large of those in central of those living in those living in city the countryside towns or city London would small towns, centres or who are suburbs/ centres like their next villages or the suburbs who downsizing would like to home to be in a countryside would prefer their would prefer to remain in an city centre would like to next home to be in move into a urban area Increasing to 47% remain in one of a village or the village or small Increasing to 69% amongst the these locations countryside town of downsizers under 40s

Source: Savills Research Client Survey November 2020 7 Supply and Demand imbalance across Shropshire

Agreed sales New Instructions +50% -2.1% (Q1 2021 v Q1 2020) (Q1 2021 v Q1 2020)

Source: Savills Research using TwentyCi 8 The impact on mainstream prices

UK West Midlands 15%

10%

-5%

-10% Annual Annual house growth price -15%

-20% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Source: Nationwide 9 South Staffordshire £277K +5%

Stafford £235K +3%

East Staffordshire £221K +4%

Shropshire £234K +4%

Source: Savills Research using Land Registry 10 The impact on prime prices across Shropshire and Staffordshire

Annual growth Since 2007 peak +6.4% -12.4% (Q1 2021 v Q1 2020) (Q1 2021 v Q1 2007)

Source: Savills Research 11 The importance of locality

Now Prior to Covid-19 60%

50%

40%

30% 55% 48% 20% 37% 28% 10%

17% 15% Proportion of respondents who ranked as 1 or 2 1 or as ranked who respondents of Proportion 0% Open space Family Shops/ local amenities Transport connection School(s) Place of work

Source: Savills Research Client and Applicant Survey March 2021 12 Vaccine & relaxation of lockdown looks to boost confidence further

Net balance of opinion on commitment to move

Greater commitment to move in the short, medium & longer term +25% +23% +20% +19%

Suggests demand is likely to remain strong throughout all of this year and into next Over the next 3 Over the next 6 Over the next 12 Over the next 24 months months months months

Source: Savills Research Client and Applicant Survey March 2021 13 Housing market outlook

5 years 2021 2022 2023 2024 2025 to 2025

Prime UK Regional +20.5% +5.0% +4.0% +3.5% +3.0% +3.5%

Prime Midlands +21.1%

+4.5% +4.0% +4.0% +3.0% +4.0%

Mainstream UK +21.1% +4.0% +5.0% +4.0% +3.5% +3.0%

Mainstream West Midlands +24.0% +4.5% +5.5% +5.0% +4.0% +3.0%

Source: Savills Research 14 Local Market Update Peter Daborn Residential Sales, Savills Telford

15 Our market

Buyers from Sales outside local Family Guide price Buyer agreed area Buyers achieved registrations +33% 45% 65% 98% +137%*

Savills Data: April 2020 – March 2021 v April 2019 – March 2021, *Q1 2021 v Q1 2020 16 Website enquiries

250%

200%

150%

100% Enquiries vs Jan 20 Jan vs Enquiries

March enquiries up 157% year on year 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

Source, Google Analytics – Jan 18 – Mar 21 Why Shropshire & Staffordshire

18 Key Drivers in the Shropshire/ • Stamp Duty Staffordshire Market • Space

• Work

• Community

• Leisure

• Education

19 What does your money buy What does your money buy you in Shropshire… you in London…

• Yockleton, Shrewsbury • Knightsbridge SW7 • Guide £1.85 million • Guide £1.95 million • 8 bedrooms • 1 bedroom • Detached • Apartment • 8,385 sq ft • 702 sq ft • £220 per sq ft • £2,777 per sq ft

Source: Savills 20 Thank you

21 Recent Successes Beccy Theodore-Jones Residential Sales, Savills Telford

22 A selection of our SOLD properties

Maesbrook, Oswestry Guide £1.25 million 96% of guide price achieved

Wentnor Guide £695,000 million 97% of guide price achieved

Bicton, Shrewsbury Guide £1.25 million 118% of guide price achieved

Church Stretton Guide £875,000 100% of guide price achieved

23 A selection of our SOLD properties

Seifton, Ludlow Guide £1.5 million 100% of the guide price

Eccleshall, Staffordshire Guide £1.25 million 100% of guide price achieved

Cheadle, Staffordshire Guide £1.6 million 100% of guide price achieved

Dogpole, Shrewsbury Guide £1.5 million 117% of guide price achieved

24 Equestrian Property Oswestry £1.35 million SALE AGREED . Savills has a dedicated equestrian team

. Beccy & Rosie are our experts for Shropshire & Staffordshire

. Rosie has worked for a double Olympic gold medalist

. Beccy is a BHSAI (British Horse Society Assistant Instructor) and has a degree in Equine Science

25 Kinlet Hall, South Shropshire SOLD Guide £3.5 million

26 Madeira Walk, Church Stretton

• On the market with a local agent

• Moved to Savills, refreshed marketing, price reduced

• 31 viewings, 7 offers

• Sale agreed at 99% of the guide price to a buyer from London

27 New...

Recent instructions and coming soon…

Church Stretton- SALE AGREED Barlaston, Staffordshire Oswestry, Shropshire Within 3 weeks of launch Guide OIEO £1 million Guide £1.6 million

Kinver, South Staffordshire Aston Munslow Fairoak, Staffordshire Guide £2 million Guide £400,000 Guide £925,000

28 The Heath House Estate, Staffordshire Guide £6.25 million

29 Q&A