%
-6 -5 -4 -3 -2 -1 0 1 2 3 4 5 6
UK key economic indicators 2004
Market Analysis Winter 2010/11 Demand has also had an
GDP CPI RPI
2005 2006 2007 2008 2009 2010
Claimant unemployment (m) Bank rate at end of period
GDP annual growth GDP quarter on quarter growth
2006 2007
GDP annual growth GDP quarter on quarter growth
200 250
100 150
2005 2006 50 0
GDP annual growth GDP quarter on quarter growth
200
100 150
50 0 ls
impact on the number of times properties are viewed before they are sold. Lower demand has meant buyers are under less pressure to make decisions and so are able to view and re-view properties without the pressure of having to make an offer. In November 2010, properties were viewed an average of just over sixteen times before a sale was agreed. This is four viewings more than in April when properties were viewed an average of twelve times. (Figure 8)
2008 2009 2010 2007 2008 2009 2010 Sales Appraisals UK key economic indicators
GDP CPI RPI
2007 New Instructions to Sell
Demand for big ticket property fuels overall price growth
New Instructions to Sell ales Appraisals Properties on Market 40 30 200
10 20
0 0 150 100 50
Sales affected by election and budget
The volume of sales agreed is often determined by seasonal factors. In 2009, we saw a clear seasonal pattern of rising sales during the spring, peaking in May and falling in the summer
8 Market Analysis Winter 2010/11
250 300
£600k £600k £550k £550k £500k
£500k £450k
£450k £400k
Sales Agreed £400k Uk London
100 150 200
Uk London Properties on Market 0
While low demand and static stock levels have created a somewhat negative view of the market, average asking prices for Winkworth properties in London have actually risen following the summer slowdown. Between September and November 2010 asking prices in the capital averaged £539k, a 2% rise on the previous three months when prices average £526k. This rise has been driven by the scarcity yet high demand for larger houses. When these properties come onto the market they are able to command the asking price and above and are driving overall price growth in the capital. (Figure 9)
New Instructions to Sell 40 30 20.0 20 10
10.0 15.0
0.0 5.0
10.0 15.0
0.0 5.0
Properties on Market
before rising again over the autumn and tailing off over the winter. In 2010, sales in London peaked much earlier with a sharp rise in February. Volumes of sales remained fairly stable from February to May before the momentum faded and the summer slowdown took hold. We then saw the autumn pick up in volumes start much later, and it wasn’t until October and November that volumes started to rise. This is probably due to the release of attractive mortgages by lenders in October and November encouraging buyers. Overall, the total number of sales agreed between January and November 2010 was 4% up on the same period 2009 thanks largely to strong activity in the early part of the year.(Figure 10)
Claimant unemployment (m) Bank rate at end of period
20.0 UK key economic indicators
GDP CPI RPI
Claimant unemployment (m) Bank rate at end of period
10.0 15.0
0.0 5.0
2007
3.1% 2.1% 4.1% 0.85
2008 0.8%
3.80% 3.1% 1.05
2009
-4.8% 2.9% 2.4% 1.63
2010 e*
1.8% 3.1% 4.4% 1.47
2011 e*
2.0% 2.8% 3.6% 1.56
5.58% 2.39% 0.50% 0.50% 0.90% * average of latest independent forecasts
200
100 120 140 160 180
20.0 15.0 10.0 20.0
10.0 15.0
0.0 5.0
0.0 5.0
20.0
10.0 15.0
9.Average Time frominstruct ion to sale agreed (WEEKS)
0.0 5.0
9.Average Time frominstruct ion to sale agreed (WEEKS) London - Viewings before Sale Agreed
In November 2010, properties were viewed an average of just over sixteen times before a sale was agreed
Figure 8 London - viewings before sale agreed
20.0 London - Viewings before Sale Agreed House Prices - UK and London £600k £550k RUSSIA 16% £500k Avera £450k £400k Figure 9 House prices - UK and London House Prices - UK and London
100 150 200 250 300
50 0
House Prices - UK and London Uk London 5.0 5.0 0.0 0.0 10.0 10.0
100 150 200
50 0 Average Time frominstruction to sal Average T
Central London - Sales Ap Jan2009 = 100
Central L
150 200
Number of Viewings beforeSale agreed Number of Viewings beforeSale agreed 15.0 Centra
Central London -Time to Sell 15.0
Central Lon
RUSSIA 16% 0.0
5.0 9.Average Time frominstruct ion to sale agreed (WEEKS) London - Viewings before Sale Agreed Number of Viewings beforeSale agreed
SAUDI 5% UAE 7%
20 40 60 80
0
SAUDI 5% UAE 7%
3.1% 2.1% 4.1% 0.85
2007
3.1% 2.1% 4.1% 0.85
2008 0.8%
3.80% 3.1% 1.05
2009
-4.8% 2.9% 2.4% 1.63
2010 e*
1.8% 3.1% 4.4% 1.47
2011 e*
2.0% 2.8% 3.6% 1.56
5.58% 2.39% 0.50% 0.50% 0.90% * average of latest independent forecasts
2008 0.8%
3.80% 3.1% 1.05
2009
-4.8% 2.9% 2.4% 1.63
2010 e*
1.8% 3.1% 4.4% 1.47
2011 e*
2.0% 2.8% 3.6% 1.56
5.58% 2.39% 0.50% 0.50% 0.90% * average of latest independent forecasts
200
100 120 140 160 180
Central London - Prospective new Jan2009 = 100
20 40 60 80
0 JAPAN 5% CHINA 10% Numbe 200
100 120 140 160 180
20 40 60 80
0
Central Lond
Central London J
Num
Number of Prospective NewBuyeIN JAPAN 5% CHINA 10%INDIA 6% JAPAN 5% CHINA 10%
SAUDI 5% UAE 7%
RUSSIA 16%FRA
Central L 15.0
10.0
09 r-09 Oct-09
Jul-09 Oct-09
Jan-10 Jul-10 Apr-10 Jan-10 Jul-10 Apr-10 Oct-10 Jul-10 Upsizing
More desirable area Downsizing
rea Upsizing Downsizing
Relocation for work Marriage Death
More desirable area Downsizing
Relocation for work Marriage Death
Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10
Relocation for work Marriage Death
Oct-10 Oct-10
ay-09 Jul-09 Sep-09 Nov-09 Jan-10 Mar-10 May-10 Jul-10 Sep-10 Nov-10
Jan-09 Apr-09
Nov-09 Jan-10 Mar-10 May-10 Jul-10 Sep-10 Nov-10
Jul-09 Oct-09
Jan-10 Apr-10
Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10
Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10
Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10
Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10
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Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10
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Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10
Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10
Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10
Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Jan-10 Mar-10 May-10 Jul-10 Sep-10 Nov-10
Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun
Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 N
Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 O
Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-0 S
Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Ju
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