Homes in Herts Market Overview 24th April 2017

Source: Savills using ONS

Source: Savills using ONS

Mainstream house price forecasts 5 years 2017-2021

New supply increasing but more homes still needed Source: DCLG, Glenigan, Savills Need New planning consents Gov. target (1m by 2020) EPCs for new dwellings Net additional dwellings

More positive sentiment after the summer dip Source: Savills

Number of bids per site picking up again Source: Savills survey of agents

Development land values back to growth Source: Savills Source: Savills Annual change -10.2% 1.8% 3.6%

A return to more normal conditions in the land market More positive sentiment ALTHOUGH More positive sentiment Improved number of bids Continued growth in land values Transaction s taking longer More selective about sites

Variation in supply Source: DCLG, net additional dwellings year to March 2016 vs 2015 stock Wide variation in delivery rates across the country Highest in Central England Can you spot the London Green Belt?

3 month on 3 month house price growth Source: ONS

Recovery since credit-crunch House prices growth across Hertfordshire has exceeded the average for the East of England since the 2008 downturn. All areas are currently above their 07/08 peak. Transactions remain c.30% below peak in line with the East of England and England and Wales. Source: HM Land Registry

House prices Source: HM Land Registry, OS OpenData

House prices Hertsmere has the highest detached values across the county. St Albans however has the highest prices for other property types. All of Hertfordshire’s local authorities have higher average values than the East of England as a whole. Source: HM Land Registry

Affordability of new-build ownership options If we assume pricing for a typical new build family (three bedroom) home in the area starts at around £470,000, we can compare the costs of purchasing such a property through different schemes. Assumptions: average FTB deposit is 17%*, 25 year mortgage term, 2.75% rent on unsold shared ownership equity. The results show that shared ownership deposit requirements are lower than other routes to home ownership. However, for higher equity shares, the monthly costs of shared ownership are higher; for lower equity shares, the monthly cost is likely to be lower than Starter Homes and is similar to outright purchase, but is still more expensive than Help to Buy. Source: Savills Research, *according to the Council of Mortgage Lenders, ** deposit requirements and mtg rates estimated as scheme details not finalised

Thank you Helen Collins hcollins@savills.com 07807 999 243 @helencollins12