LSL New Build Index March 2015

As we see more positive headlines about the property market,

following the Budget announcement, LSL Land & New Homes

brings further news about the movement in new build prices

across the UK but also an insight into the relative affordability of

new homes in each region as Shaun Peart, Managing Director of

LSL Land & New Homes, explains:

In the year to the end of February 2015 the year on year growth in

new build prices is 7.0% which is a slight fall on last month’s figure

of 7.2% and, as reported last month, the regional growth compared

to the slowing growth in Greater London is continuing.

Excluding Greater London, the average regional growth rate now

stands at 4.7% against a figure of 0.9% for this time last year when

some regions were showing negative growth and the overall

picture was largely flat. Now all regions are showing growth over

2% with the highest performers being generally closest to Greater

London.

It is likely, however, that the apparent slow down in the Greater

London market will be, in part, due to the relative affordability of

new homes which we are now able to monitor in our LSL Land &

New Homes Affordability Index.

An index below 100 implies that property is more affordable

with a below average proportion of income needed to service a

mortgage. A figure above 100 implies that a greater than average

proportion of income is needed to service a mortgage. It is clear

that in regions such as the East Midlands, North East and Yorkshire

and Humberside that affordability is more favourable but, as

expected, it is those buyers in Greater London, East Anglia and the

South East who may feel ‘the pinch’.

The LSL Land & New Homes Affordability Index is based on:

• Theaveragepriceofa70sqmnewbuildproperty,usinga

weighted index of flats and terraced housing, representing

the available mix in each region is taken (previously terraced

property only was used).

• AveragefulltimeearningsaretakenusingONSdata.

• TheHousePriceEarningsratio-createdforeachregionby

dividingtheaverageearningsintotheaverageprice.The

higher the ratio, the less affordable property is / the greater the

amount of earnings that needs to go into paying a mortgage.

• TheseHPEratiosarethenindexedtocreateanaffordability

index for each region where the average of all is 100.

Datasources:LSLNewBuildHousePriceIndex

ONS,EARN05–Averageweeklygrossearningsoffulltimeemployees,byregion.

LSL New Build Index

Poweredby

March 2015

Regions2bed70sqm starter home

Average annual FullTimeearnings

HPE

Affordability Index

East Anglia £178,478 £30,193 5.91 113

East Midlands £104,144 £27,252 3.82 73

Greater London £378,152 £37,864 9.99 191

North East £98,627 £25,242 3.91 75

North West £116,977 £27,232 4.30 82

Scotland £133,667 £26,932 4.96 95

South East £191,959 £32,972 5.82 111

South West £149,904 £28,177 5.32 101

Wales £119,045 £24,737 4.81 92

West Midlands £125,990 £26,290 4.79 91

Yorks & the Humb £105,488 £26,197 4.03 77

Average 5.24 100

Notes

ThisIndexhasbeenpreparedbye.survusinganonymiseddatabasedonaproportionofallnewbuildvaluationsprovidedforlendingpurposes.Figuresrepresent12monthrollingaveragesforeachperiod.ThecopyrightandallotherintellectualpropertyrightsintheIndexbelongtoe.surv.Reproductioninwholeorpartisnotpermittedunlessanacknowledgementtoe.surv as the source is included. No modification is permitted without e.surv’s prior written consent.

Whilst care is taken in the compilation of the Index no representation or assurances are made as to its accuracy or completeness. e.surv reserves the right to vary the methodology and to edit or discontinue the Index in whole or in part at anytime.

e.surv(www.esurv.co.uk)istheValuationbusinessofLSLPropertyServicesplc(www.lslps.co.uk)andistheUK’slargestresidential valuation practice, acting for lenders, developers, Social Housing organisations and other stakeholders in the residentialpropertymarket.Thebusinessemployscirca450charteredsurveyorsandcoverstheentireUK.

LSLLand&NewHomesisatradingstyleformembersoftheLSLPropertyServicesGroupEstateAgencyDivision,oneoftheleadingresidentialpropertyservicesgroupsintheUK.It’sstrategyistocreatepartnershipswithdevelopersandbuilderstosupport their objectives and add value to their businesses. It can provide integrated solutions for their benefit drawing on the expertise of companies who are also under the LSL Group umbrella including valuation services (e.surv), rental portfolio services,assetmanagementservicesandestateagencyservicesfrontedbywell-knownhighstreetestateagencybrandslikeYourMoveandReedsRains.Servicescanbetailoredtosuiteindividualneedsfrombespokesitesalesandmarketing,agencyreferraltothedisposalofpartexchange,assistedschemesandnewbuildstock,landsalesandacquisitions.

ForfurtherinformationorenquiriesregardingtheunderlyingdataoftheLSLNewBuildIndex,pleasecontactRichardSextonviaemailrichard.sexton@esurv.co.ukorbyphoning07968932118.

ForfurtherinformationabouttheLSLPropertyServicesGroupincludingLSLLand&NewHomesand e.surv, visit www.lslps.co.uk

DatafortheLSLNewBuildDatabaseiscollectediscollectedoffthewebsitesofover300housebuildersonarollingquarterlybasissogivinga rough timeline of when sites start and finish and how many units have been built.

PLEASENOTE:Themajorityofnewbuildmarketactivitydataisquitehistoric,beingbasedonreturnsmadeviatheNHBCorLocalAuthoritycompletionsdata.TheLSLNewBuildDatabasetracksthenewbuildactivityofover300leadinghousebuilderswithdatacollectedfromtheirwebsitesonarollingquarterlybasissogivingaroughtimelinewhensitesstartandfinishandhowmanyunitshavebeenbuilt.

Disclaimer:ThedataisprovidedbyLSLLand&NewHomesandisbasedondataprovidedasdescribedabove.Whilereasonableskillandcarehasbeentakeninthepreparationofthedata–thecopyrightandallotherintellectualpropertyrightsofwhichbelongtoe.survlimited-neither e.surv Limited nor LSL Land & New Homes can accept liability for the accuracy or completeness of the data provided.

Reproductioninwholeorpartisnotpermittedunlessanacknowledgmenttoe.survLimitedisincluded.Nomodificationispermittedwithout e.surv Limited’s prior written consent.

No warranty of the figures is given and no responsibility or liability of any nature to you or any third party for the whole or any part of its content is accepted. It is assumed that you will carry out your own due diligence before proceeding with any proposals or making any financial commitments.

LSL New Build Index Poweredby

LSL New Build IndexPoweredby

Scotland* £ Average %+/-

Detached £258,130 6.3%

Flats £141,202 8.2%

Semis £165,232 -4.6%

Terrace £183,848 7.2%

North West* £ Average %+/-

Detached £277,867 2.3%

Flats £126,336 3.2%

Semis £169,987 3.0%

Terrace £160,118 2.1%

West Midlands* £ Average %+/-

Detached £305,977 4.3%

Flats £130,271 5.2%

Semis £193,927 5.2%

Terrace £186,551 6.3%

Wales* £ Average %+/-

Detached £238,525 -0.1%

Flats £135,870 7.7%

Semis £165,374 3.2%

Terrace £164,246 4.3%

South West* £ Average %+/-

Detached £334,293 4.7%

Flats £164,335 4.7%

Semis £218,298 5.2%

Terrace £212,395 5.5%

South East* £ Average %+/-

Detached £448,319 5.8%

Flats £197,133 8.0%

Semis £294,544 8.9%

Terrace £277,030 7.1%

Greater London* £ Average %+/-

Detached £635,239 16.4%

Flats £373,637 13.7%

Semis £454,750 15.1%

Terrace £492,534 20.5%

East Anglia* £ Average %+/-

Detached £349,395 6.5%

Flats £193,556 6.3%

Semis £241,683 4.4%

Terrace £245,950 9.8%

East Midlands* £ Average %+/-

Detached £270,031 8.0%Flats £107,289 5.8%Semis £167,641 1.1%Terrace £159,504 3.5%

Yorkshire & the Humber*

£ Average %+/-


North East* £ Average %+/-


*Size adjusted average price




*Size adjusted average price *Size adjusted average price *Size adjusted average price





Average new homes prices in the period March 2014 to February 2015 and % variation over same period 2013/14

Documents

LSL New Build Index March 2015