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1
Savills Oxford
Home Truths
Tuesday 3 November 2020
Welcome and thank you for joining
You are on mute for the duration of the webinar
We will begin shortly
2
Welcome
Frances Clacy
Residential Research
020 7409 5905
Andrew Perratt
Head of CountryResidential
020 7016 3823
Ed Sugden
Country House
Department
07557 337 507
Charles Elsmore-Wickens
Head of Cotswold
Region Residential
01865 339 702
Kelly Matthews
Head of Summertown
Lettings
01865 339733
3
UK Residential UpdateFrances Clacy, Residential Research
Source: ONS 4
Why this downturn is unique
60
65
70
75
80
85
90
95
100
105
Index of Monthly Economic Output Low levels of price growth prior to
Covid-19
Very low interest rates
Action taken to
protect jobs and
household finances
Stamp duty holiday
Changing lifestyles
and priorities
Source: Savills Research using TwentyCi 5
Strong bounce back at the top end
88%103%
91%
112% 111%
132%
91%
26%37%
132%
195%
227%
252%
230%
0%
50%
100%
150%
200%
250%
300%
v s
am
e m
on
th la
st ye
ar
Properties marked as Sold Subject to Contract
Whole Market £1m+
6Source: Savills Research using Land Registry
West Oxfordshire
Vale of White Horse
South Oxfordshire
£516kOxford
£479kSouth
Oxfordshire
£391kWest
Oxfordshire
£382kVale of
White Horse
7Source: Savills Research using Land Registry
West Oxfordshire
Vale of White Horse
South Oxfordshire
£1.05mNorth & St Margaret’s
£921kSummertown
Source: Savills Client Survey August 2020 8
Lockdown has driven a change in buyer requirements
56%
more inclined to work from
home in the future
66%
of those anticipate that they will do so for 3+ days a
week
57%
said a separate space to work from home had become more
important
48%
said accessibility to
Wi-Fi had become more
important
62%
said the amount of garden or
outside space had become
more important (80% of the under 40s)
Growth in employees in the professional, scientific & tech sector
+7.3%+6.7%
2019 – 2024Oxford, South Oxfordshire, West Oxfordshire & Vale of White Horse
2014 – 2019Oxford, South Oxfordshire, West Oxfordshire & Vale of White Horse
Source: Savills Research using Oxford Economics 9
Source: Savills prime regional index, Q3 2020 10
Prime price movements
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
Ann
ua
l pri
ce m
ovem
en
t
All prime UK (excluding London) Prime Oxford
Annual
growth
+2.6%All prime UK
(excluding London)
+2.4%Prime Oxford
11
Oxford
City
+21.5%5-year growth
Oxford
Surrounds
+5.3%5-year growth
Source: Savills prime regional index, Q3 2020
Source: Savills 12
Looking forward
Buyers and sellers will need to continue to remain realistic1
• Economic pressures & Brexit make it difficult to sustain current momentum2
Further lockdown restrictions could reiterate changing housing needs & priorities 3
• Mortgage debt remains incredibly cheap but is proving difficult to access4
• The wider tax environment may act as a drag on future price growth5
Source: Savills Research 13
And for the prime rental markets across the commuter zone
Increased tax &
regulation
More try before you buy tenants
Best in class
favoured
Low stock levels
But demand for 1 & 2 beds
remains robust
Tenants seeking more inside and outside space
More demand from Londoners
Sharp rise in applicant numbers
14
Oxford rental
values
-0.9%Quarterly
growth
Oxford rental
values
+2.4%Annual
growth
Source: Savills prime rental index, Q3 2020
Thank you
© Savills 2020
16
Local Market Update
Charles Elsmore-Wickens
Head of Oxford Residential
17
The current Oxford market
Buyer registrations
+55%
Buyers from London
24%
£1m+Sales agreed
+25%
Multiple offers
61%
Guide price achieved
96%
18
The 2020 Oxford market • A very busy start pre-Covid-19
• Record activity in and out of town
• Country house market a big winner
• Competitive bidding has returned at all levels
• Supply keeping up with demand
• Pricing remaining steady
• Schooling a constant driver
• Oxford still offering good value
19
Sold properties in the town
St John Street, Oxford
Guide £2,500,000Sold during lockdown to Hong Kong-based applicant
Lonsdale Road, Oxford
Guide £875,000Sold over guide price pre-lockdown
Park Town, Oxford
Guide £1.85 million Multiple offers post lockdown
North Oxford
Guide ConfidentialPossibly one of the most significant sales
in the last 5 years. Sold post-lockdown
20
Sold properties in the villages
Court House, Buckland
Guide £1,500,000 27 viewings, 14 offers. Under offer over guide price
Blackditch Farm, Stanton Harcourt
Guide £850,00024 viewings, under offer over guide price
The Shrubbery, Eynsham
Guide £1,400,000 Guide price achieved
Mulburry Barn, Shipton-Under-Wychwood
Guide £1.85 millionGuide price achieved
21
Radcott Bridge Cottage
Under offer guide £1.3 million
2 acres and 26 moorings
22
Fox House, Little Coxwell
• Marketed previously with other agents and
failed to sell in 2019
• Same guide price £1.5 million
• Re-launched June 2020
• 17 viewings in 10 days
• 3 parties offered
• Best and final offers called
• Sold in excess of the guide
• Sale agreed June 2020
Source: Savills 23
• Guide £1.5 million
• Detached, 6 bedrooms
• Double garage
• 4102 sq. ft.
• £365 per sq. ft.
What does your money buy you in Oxfordshire…
• Guide £1.5 million
• Apartment, 3 bedrooms
• Kensington, W8
• 1,057 sq. ft.
• £1,419 per sq. ft.
What does your money buy you in London…
New...
24
..and coming soon
Summary
• Activity in the market was already strong in January and February
• Demand for all property, but particularly prime village and rural locations, rose sharply post-lockdown
• Buyers registered with London-based postcodes are at 24%
• Requests for a study / home office and fast internet speed have vastly increased
• Demand is fueled by Oxford schooling, ongoing investment in science and technology in the region and value for money compared to London
• Supply has been keeping pace with demand, except perhaps in the large country house market
• Second lockdown may limit activity but new registration statistics point to a continually strong demand
26
Summertown LettingsKelly Matthews
Head of Summertown Lettings
Source: Source: Savills data Q3 2019 vs Q3 2020 27
Oxford so far…
New tenant registrations
+120%
Viewings
+73%
New tenancies
+32%
Final asking price
vs achieved
rental price
+99.6%
Pet friendly
Rent holidays / reductions
Virtual viewings
Emerging trends
Weekend home
Following the first lockdown
28
Wish list
29
LET properties - virtual viewings
Great Clarendon Street, Oxford
Guide: £3,000 pcm
Thornhill Park, Oxford
1 bed, Guide: £900 pcm to £1,275 pcm
2 beds, Guide: £1,257pcm to £1,400pcm
Salisbury Crescent, Oxford
Guide: £1,850pcm
North Hinksey Lane, Oxford
Guide: £1,500 pcm
Source: Savills 30
What your money can get you in the city
Mill Stream House
Guide £1,500 pcm
1 bedroom
City centre
Old Town Cottage
Guide £1,500 pcm
3 bed detached
Farming estate in Nuneham Courtenay
Kingston Road
Guide £4,000 pcm
4 bed Victorian
Westfield House
Guide £3,950 pcm
Detached 6 bedroom in Ardington
What your money can get you in the country
Thank you
© Savills 2020
32
Q&A