Uttlesford housing market report: February 2023

This information is designed to provide information on the current housing market pressures within the district.

Information is taken from the web-based analytics company Hometrack (hometrack.co.uk) and is based on sales and valuation data.
 

Context

Property prices in Uttlesford are higher than figures for the Eastern region due to the district's proximity to London and Cambridge. For example, the average price of a new build house is £412,085 for the Eastern region compared to £590,000 for Uttlesford.
 

Uttlesford prices over time

Figure 1 provides information on the overall property prices in Uttlesford between May 2021 and February 2023. The most expensive properties are within the 90^th percentile compared to the lower quartile which provides information on the lowest 25% (prices) of properties.

The most expensive properties (90^th percentile) have changed from £924,959 in May 2021 to £1,113,666 million in February 2023 compared to the lowest priced properties which have changed from £334,666 in May 2021 to £373,333 in February 2023. The average property price has increased from £530,687 in May 2021 to £594,099 in February 2023.

Figure 2 shows the average property price for February 2023 at ward level.

The highest average price was for High Easter & The Rodings at just under £1.1 million compared to £394,984 for Gt Dunmow South & Barnston ward.

The average price for the Uttlesford district is £594,099 and is included to enable comparison between individual wards.

Properties by bedroom size

This section will look at property prices by bedroom size at ward level.

Data for 1 & 2 bed flats is incomplete due to no sales/property valuations for flats within several wards and is therefore omitted.
 

Houses

House price data by ward for February 2023 is given in Figure 3 showing the prices for 2, 3 and 4-bedroom houses.

Average price data for 2-bedroom houses was not available for all wards and so price information is shown in figure 3 for those wards where it was available.

The least expensive two-bedroom house was £280,000 within High Easter & the Rodings ward and the most expensive was £650,00 within the Broad Oak & The Hallingburys ward. The average price of a two-bedroom house within the Uttlesford district is £364,050.

Three bed houses range from £367,178 within the Ashdon ward to £600,000 within the Sampfords ward.

Four bed houses were least expensive in the Flitch Green & Lt Dunmow ward at £458,714 compared to just over £1 million in Broad Oak & the Hallingburys.

Affordability

The chart in Figure 4 shows the amount of deposit required to purchase a 2-bedroom house on the open market by ward. The deposit is 15% as per the guidance and analysis from the Hometrack Housing Intelligence System is used.

No sales/valuations data for 2-bedroom houses was available for the Hatfield Heath, Clavering, Debden & Wimbish and the Littlebury, Chesterford & Wendens Loft wards.

The ward with the lowest deposit required of £42,000 is High Easter & the Rodings compared to Broad Oak & The Hallingburys which is the most expensive with a deposit of £97,500. A deposit of £54,608 is required on average to purchase a 2-bedroom house within the Uttlesford district.

Income

The district benefits from higher-than-average salaries due to a large number of residents working within the technical and highly skilled professions.

However, sixty percent of PAYE residents (ie self-employed not included) earn below £33,410 pa and 40% earn below £23,100. The overall average income for Uttlesford for PAYE residents 2021 was £35,297 which is a 10.7% reduction compared to the 2020 average of £40,259. The median (mid-range) of incomes for PAYE residents is £26,752 within Uttlesford which is a reduction of 7.7% compared to 2020 when it was £28,940[1].

To access the cheapest 2 bed property of £280,000 in the High Easter & the Rodings ward on the open market in February 2023, a joint household income of c£52,888 with a 15% deposit or c£56,000 with a 10% deposit was required. These figures would vary if the household had debts that needed to be considered and are based upon lending of 4.5 x joint income.

To meet the housing needs of local residents, the Council requires 40% of development on schemes of 15 or more units to be delivered as affordable homes. This will include an element of sub-market rent and ownership products. In addition, communities can consider a small Rural Exception Site housing scheme to deliver homes for people with a strong connection to that Parish. Please contact the Housing Strategy Team for more information.

Sub-market ownership products include shared ownership and First Homes. The shared ownership product enables purchasers to buy a portion of the property and rent the remainder. A deposit of only 5% is required on this product.
 

First Homes

All planning applications for market led sites determined after 23/3/22 require at least 10% of all properties to be for low-cost home ownership and 25% of the affordable provision to be First Homes for first time buyers available at a discount of at least 30%. A price cap of £250,000 after discount applies outside of London.

In February 2023 a 30% discount resulted in 2-bedroom houses being below the price cap of £250k in 8 out of the 17 wards where price data for 2-bedroom houses is available.

The average price of a 2-bedroom house in the Uttlesford district after a 30% discount is applied is £254,835 thereby exceeding the £250k price cap for First Homes after a 30% discount is applied.

No 2-bedroom house sale/valuation data was available for the Clavering, The Sampfords, Hatfield Heath, Debden & Wimbish and the Littlebury, Chesteford & Wendens Loft wards.
 

Conclusion

This report has provided a brief overview of the current housing market in Uttlesford at ward level as of February 2023.

Affordability remains difficult, but the provision of affordable homes helps towards trying to meet the needs for Uttlesford residents.

[1] Annual Gross Pay UK 2021 Table 8.7a Office National Statistics 2021