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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

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Welcome

Frances Clacy

Residential Research

FClacy@savills.com

020 7409 5905

Andrew Perratt

Head of CountryResidential

APerratt@savills.com

020 7016 3823

Ed Sugden

Country House

Department

ESugden@savills.com

07557 337 507

Charles Elsmore-Wickens

Head of Cotswold

Region Residential

CEWickens@savills.com

01865 339 702

Kelly Matthews

Head of Summertown

Lettings

KMatthews@savills.com

01865 339733

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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

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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

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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

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Local Market Update

Charles Elsmore-Wickens

Head of Oxford Residential

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The current Oxford market

Buyer registrations

+55%

Buyers from London

24%

£1m+Sales agreed

+25%

Multiple offers

61%

Guide price achieved

96%

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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

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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

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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

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Radcott Bridge Cottage

Under offer guide £1.3 million

2 acres and 26 moorings

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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...

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..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

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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

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Wish list

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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

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Q&A