BAROMETER VOLUME III
B A RO M E T E R | Property advice that gives you an advantage |
World City
A Walk in the Park
Continental Shift
Silver Lining
ideas from
Country Retreats
Investment Potential
Million Pound Club
savills
7 IDEAS FROM SAVILLS
| FOREIGN AFFAIRS |
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savills.co.uk/barometer
| BAROMETER |
welcome
The property market is constantly changing. New locations become popular and new buyers, especially from overseas, drive sales and prices, particularly in London. Expert advice is essential to make the most of these exciting opportunities. In this issue of Barometer, and our new online version, you will ďŹ nd our latest thinking on key aspects of the market, from prime London and country houses to luxury properties around the world. Whether you are buying a family home or looking for a smart city investment, we hope you ďŹ nd our insights informative and inspiring.
Photograph: Andrew Montgomery
Justin Marking Head of Savills UK Residential
Barometer Online
For the latest market updates, property selections and video exclusives, please visit: savills.co.uk/barometer
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| BAROMETER |
Chapter 3
Million Pound Club The big impact commuters are having on £1 million-plus homes. page 27
Chapter 1
World City
How to sell your prime London home to a wealthy overseas buyer. page 5
Chapter 4
Chapter 2
Country Retreats An insider’s guide to buying well in the countryside. page 15
Chapter 5
Silver Lining
Investment Potential
Chapter 7
Your guide to Savills property services, plus contact details for Savills offices. page 71
Discover why the “grey pound” is dominating the second-homes market. page 35
We reveal the latest smart thinking on property investment. page 45
Directory
Chapter 6
A Walk in the Park Green spaces are creating hotspots in cities around the UK. page 53
Continental Shift A look inside some of the world’s most exclusive homes. page 61
Barometer is produced by Seven, seven.co.uk, and Savills Marketing Department. With special thanks to Tessa Williamson. All information correct at time of going to press. All rights reserved. Articles may not be reproduced without written permission from Savills UK Limited. Opinions expressed in articles are those of the author and not Savills. While every care is taken in compiling the content, neither the publisher nor Savills UK Limited assumes responsibility for effects arising from this publication.
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Cover illustrations: Ian Bilbey/CIA. Cover image: Shutterstock. Chapter openers: Alamy, Getty Images, Plain Picture, Shutterstock. End page illustrations: Borja Bonaque.
In this Issue
Q Chapter 1
Q
WOR L D CI T Y
A GLOBAL SUPERSTAR When it comes to residential property, London is truly a global city. Overseas buyers now purchase 59 per cent of prime central homes and 70 per cent of all prime new-build properties. As a result of this influx of wealth, sales of ÂŁ5 million-plus homes are on the rise. Barometer online
For the latest insights into London property, please visit savills.co.uk/barometer
Q
MASTERCLASS
BR IG H T and
BE AU T I F U L
This grand Knightsbridge residence reflects the global appeal of London’s most luxurious homes Words Damon Syson
| WORLD CITY | WRITING IN the Evening Standard, eminent former diplomat Sir Christopher Meyer recently posed the following question: “Is it too arrogant to think London has become the capital of the world?” Perhaps the best people to answer that question are overseas property buyers. Drawn by London’s stability, security and cultural life, they have put the city at the top of their investment list. As a result, while the prime market pauses for breath, sales of £5 million-plus homes remain strong. “For ultra high net worth individuals, a London home is a way to own a safehaven investment and enjoy an attractive lifestyle,” says Jonathan Hewlett of Savills London Residential. “In uncertain times that is a very compelling combination.” This spectacular, six-storey home epitomises everything that wealthy overseas buyers are looking for in a prime London property. As you’d expect, location is a priority. “The house is in the heart of the golden triangle that flanks the south-east corner of Hyde Park,” says Jonathan. “It’s rare because it is one of the few properties that hasn’t been converted into apartments.” Large-scale houses in the most desirable London postcodes are actually few and far between, which is one of the reasons that the ultra-prime market is so strong. So what facilities does a house need to offer if it’s going to win over the world’s most affluent – and demanding – buyers? Location on its own isn’t enough to seal the deal. The property also has to have the “F factor” – the correct feel, floorplan, facilities and finishes. “The first thing you notice when walking around this property is the overall look and feel of the house,” says Jonathan. “It is flooded with natural light and the floorplan has been carefully thought through. For example, there is a very good reception hall on the ground floor that has been designed so the owner can host private business meetings without visitors coming into the rest of the house.” !
BRIEFING
In the grand style Knightsbridge A magnificent Grade II listed house, located in the heart of London, offering 14,777 sq ft of accommodation.
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| WORLD CITY |
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| WORLD CITY | Unusually the house has two lifts, one for oozes quality,” says Jonathan. “It’s all down family and one for staff. The entertaining to the minutiae. People can always make a space on the first floor is exceptional, and building look pretty, but true quality is when the master bedroom is suitably grand. It you look closely and there are no errors, no has the added convenience of doors leading shortcuts. The quality of the work in this from the dressing room to the hallway, house, even within the premium market, is meaning staff can deliver clothes without exceptional. The best craftsmen have been waking anyone sleeping in the bedroom. employed to get the finish absolutely right.” In terms of facilities, extras like staff At this level of the market there are few accommodation, gyms, cinemas, saunas, “turn-key” properties – ones that are ready massage rooms and wine stores (all of which to walk into. Most need some work, which feature in this property) have become can put off potential buyers. standard at the top end “One of the biggest of the market. The changes is that buyers house also has state of now often want to have the art security, sound a turn-key property,” and heating – all says Barbara Allen of controlled via iPads. How can London homeowners Savills Knightsbridge. “Above all, the buyer attract an overseas buyer? “They have neither the for a property like this time nor the inclination is really looking for to do a property up. “Choose natural colours to create something that suits They’re cash rich/time a look that will appeal to the broadest their lifestyle,” says poor, and when they cross-section of buyers. Try to avoid Jonathan.“For example, buy a house they want making dramatic design statements. they will expect a to start their London With furniture and art works, it pays catering kitchen for life immediately.” to err on the side of caution. You may entertaining on a grand Of course, it is life in love something, but that doesn’t mean scale, but they also a global city that is the potential buyers will. When it comes to want a more relaxed real icing on the cake. layout, an impressive reception space is family kitchen. This “There is definitely essential as entertaining is going to be house has an entire much more to London’s high on the buyer’s list of priorities. family floor with a appeal than simply Remember, you’re not just selling family room, a kitchen/ being a safe haven,” a property, you’re selling a lifestyle.” breakfast room and Simon Buhl Davis, Savills Interior Services says Barbara. “As a city nanny’s quarters – so in which to live, work you’ve almost got a and play, London is separate flat within the almost unrivalled. The house, which means infrastructure is good children can enjoy more informal living.” and the traffic – though we complain about The final item on the dream checklist is it – is nothing compared to the gridlock of perhaps the most important – the wow Moscow or Dubai. What’s more, the city factor. It’s meticulous attention to detail has outstanding restaurants, retail and that elevates a home to a residence. That’s culture. For people used to the best, it feels certainly the case here. From the brand new like the place you want to be right now.” staircase with its beautiful nickel balustrade to the ornate plaster ceilings in the reception Jonathan Hewlett, Savills London Residential rooms, this is living on a grand scale. +44 (0)20 7824 9018, jhewlett@savills.com “International high net worth individuals Barbara Allen, Savills Knightsbridge will pay a premium for a property that really +44 (0)20 7590 5059, baallen@savills.com
Global Appeal
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| WORLD CITY |
Neighbourhood
WATCH
Buyers who can’t find their ideal home in a prime location are moving to stylish but more affordable neighbourhoods Words Mark Palmer Illustration Deanna Halsall
LONDON’S PRIME property areas are on the move. There are currently 10 of these exclusive locations in the capital, ranging from Belgravia to The Boltons. But a ripple effect is seeing wealth flowing from prestigious addresses into less highprofile neighbourhoods. These share many of the prime areas’ qualities, from housing stock to amenities, but are more affordable. “While high net worth buyers tend to concentrate on well-known locations, other purchasers are being savvy and buying into areas where there is still plenty of market growth,” says Charles Lloyd of Savills Mayfair. In central London there are four locations smart purchasers are targeting – Fitzrovia, Marylebone, St John’s Wood and Westminster – where prices can be up to 25 per cent below their prime equivalents. In many cases, these buyers are finding it hard to compete with the global wealth
Top 10 Prime Locations Belgravia Chelsea Holland Park Kensington Knightsbridge
Mayfair Notting Hill Regent’s Park St James’s The Boltons
flowing into the capital. Overseas money in prime central London accounts for 60 per cent of buyers in the £1 million-plus prime sector and more than 70 per cent of buyers in the £5 million-plus market. As a result, house hunters are looking further afield. A good example is St John’s Wood, which is attracting buyers who are priced out of the more expensive prime properties of Regent’s Park.
“Buyers are becoming much better informed,” says Stephen Lindsay of Savills St John’s Wood. “They look at the Land Registry and do their homework.” The ripple effect of buyers is now also evident in south-west London. Fulham is seeing sustained interest from purchasers who are unable to secure the type and size of property that they want in Chelsea. “There might be 10 prime areas right now,” says Stephen. “But in five years’ time that number could grow to 15 or more as property wealth spreads across the capital.” So this could be the perfect time to buy into a future prime location. Charles Lloyd, Savills Mayfair +44 (0)20 7578 5111, clloyd@savills.com Stephen Lindsay, Savills St John’s Wood +44 (0)20 3043 3600, slindsay@savills.com
ST JAMES’S
FITZROVIA
MAYFAIR
MARYLEBONE
PRIME: St James’s is all about old masters on display downstairs in dealers’ showrooms, old money living in grand apartments upstairs. REASONS TO BUY: A blink away from renowned restaurants; within walking distance of theatreland.
NEAR PRIME: If you’re looking for the spiritual home to the new media and art Establishment, then you’ll find it in Fitzrovia. REASONS TO BUY: One of London’s most cultured, central and connected neighbourhoods.
PRIME: Mayfair is characterised by elegant townhouses and imposing mansion blocks. REASONS TO BUY: The best shopping and restaurants in town. The Connaught, Claridge’s and The Dorchester are all local.
NEAR PRIME: Marylebone has a village feel with boutique shops and traditional butchers and bakers. REASONS TO BUY: Very close to Regent’s Park and home to Daunt Books, the capital’s most charming bookshop.
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| WORLD CITY |
REGENT’S PARK
ST JOHN’S WOOD
KENSINGTON
WESTMINSTER
PRIME: Peerless Nash houses overlook Regent’s Park, one of the city’s most beautiful green spaces. REASONS TO BUY: Excellent schools. Easy access to the Heathrow Express, which gets you to the airport in 15 minutes.
NEAR PRIME: St John’s Wood is a leafy neighbourhood on the north-west side of Regent’s Park. REASONS TO BUY: Charming local high street with independent shops. Substantial family homes, most with large gardens.
PRIME: This is a quintessentially British neighbourhood, but family houses attract overseas buyers. REASONS TO BUY: Easy stroll to the green spaces of Kensington Palace Gardens and Holland Park. Excellent transport links.
NEAR PRIME: An exclusive enclave that is perfectly positioned for Whitehall and the West End. REASONS TO BUY: This is a very quiet neighbourhood, despite its central location. Superb choir at St Margaret’s Church.
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PROPERTY·PORTFOLIO
Simply the best These central London properties, whether newly built or luxuriously refurbished, are in a class of their own
One Cornwall Terrace Regent’s Park
A prestigious, 19th century residence
Steeped in architectural history
This magnificent Grade I listed London Regency mansion is set in landscaped grounds with a carriage driveway. A beautifully appointed house, it has seven bedrooms and is close to some of the best boys’ and girls’ schools in London.
Price on application, leasehold
Stephen Lindsay, Savills St John’s Wood +44 (0)20 3043 3600, slindsay@savills.com - 12 savills.co.uk/barometer
| WORLD CITY |
South Eaton Place Belgravia
Modern classic
An elegantly refurbished Grade II listed townhouse located in a prime Belgravia street, with garaging and a large terrace. The quality of the finish, design and specification is outstanding and includes Lutron lighting, air-conditioning, underfloor heating and bespoke silk carpets throughout.
Price on application, freehold
Key features
One Hyde Park Knightsbridge
Lap of luxury
In terms of design, service and location – close to Harrods and overlooking Hyde Park – there’s nothing quite like this luxurious apartment. Access to the Mandarin Oriental’s superb facilities, including 24-hour room service, in-room spa treatments and ordering in from Heston Blumenthal’s Dinner restaurant.
Price on application, leasehold
Key features
Upper Wimpole St Marylebone Village
Family affair
This light and spacious six-bedroom Grade II listed family house is a short walk from Marylebone High Street. It is beautifully restored with bespoke interiors and finished to the highest standard. The fantastic entertainment and leisure space includes three reception rooms, a gym and the latest in-home theatre technology.
Price on application, freehold
Key features
• First-floor double drawing room leading on to a club room and landscaped terrace • Bespoke dining room with antique mirror-panelled walls • Master suite with bathroom and extensive bespoke dressing room • Three further bedrooms, all en suite
• Interiors by Candy & Candy • Four bedrooms • 4,774 sq ft of living space • Unrivalled views over Hyde Park • Mandarin Oriental five-star services • On-site facilities include a private cinema room and a 21m ozone pool • EPC Rating = C
• Within a few minutes’ walk of Regent’s Park and Oxford Street • Six bedrooms • Separate staff/guest apartment • Private courtyard garden • Bespoke kitchen with marble countertop
Barbara Allen, Savills Knightsbridge +44 (0)20 7581 5234 baallen@savills.com
Ned Baring, Savills London +44 (0)20 7409 9998 nbaring@savills.com
Charles Lloyd, Savills Mayfair +44 (0)20 7578 5100 clloyd@savills.com
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| WORLD CITY |
Ne w OPPOR T U N I T I E S Dominic Grace of Savills Residential Development on how to ensure a new-build investment delivers maximum capital growth
1
Choose Established Areas
Properties located in central areas with good transport links, such as Kensington, Knightsbridge, St James’s and Mayfair, have all benefited from strong capital appreciation in recent years, and they continue to attract international buyers. Prime central London generally has weathered the global financial crisis well. Average values are now 24 per cent above pre-downturn levels in 2007, thanks to the capital’s reputation as a safe haven for investors from around the world and a supply of homes that is easily outstripped by demand.
2
Follow New Transport Links
Infrastructure projects such as Crossrail create investment opportunities. This rail service, due to open in 2018, will link west and east London. Journey times between the West End and Canary Wharf will be just 13 minutes. As a result, there are three areas in particular that may see significant price rises in property over the next five years: King’s Cross, Soho and Farringdon. Another transport project worth keeping
Dominic Grace Savills London Residential Development +44 (0)20 7409 9996 dgrace@savills.com - 14 savills.co.uk/barometer
an eye on is the London Overground network. This travels through 20 of the city’s 33 boroughs. The final section, the East London extension, has recently been opened. It creates easier links between South London and the city’s financial centres and is set to have a positive impact on local property values.
3
Look for Regeneration
Adventurous investors should look at areas seeing substantial inward investment, such as Nine Elms or Elephant and Castle.In the latter, a respected regeneration company is building 2,800 homes and a new shopping centre is planned to help the area shed its scruffy image. The location is key as it suits buyers wanting fast Underground links to the West End and the City, and rail links to Eurostar at St Pancras. SotoidentifythenextElephantandCastle or Nine Elms, look at the map and count how many stops it is to the centre of town. It sounds simple, but it’s an effective way to spot an investment opportunity.
Words: Chris Partridge
A PERIOD HOME in London is seen by many private buyers as a must-have trophy asset. But when it comes to newbuild properties, purchasers are not just looking for a desirable place to live, they also want an investment that will deliver optimum returns. So here are three golden rules to help identify the best opportunities in the capital.
Chapter 2
COU N T RY R E T R E AT S
THE GRASS IS ALWAYS GREENER A rural retreat is seen as the ultimate home for many property buyers, whether it’s a classic rectory, an idyllic cottage or a grand Georgian residence. So it is no surprise that the value of country houses in key locations has risen by 9.5 per cent in the past three years. Barometer online
For the latest insights into prime country homes, please visit savills.co.uk/barometer
FOREIGNRETREATS AFFAIRS | | | |COUNTRY
Buying into the
FAIRY TALE
Buyers are enchanted by classic country homes. But what types of houses and locations are the smartest investments? Words Graham Norwood Illustration Hattie Newman
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Photograph: Ania Wawrzkowicz
FOREIGNRETREATS AFFAIRS | | | |COUNTRY
MOVING TO the country is a dream for many city dwellers. It’s a chance to use the equity built up in their urban homes to buy a peaceful rural retreat. But what types of country homes are the best long-term purchases for city buyers and what are the pitfalls they should avoid? The first rule for buyers is simple. If you have fallen in love with the countryside, don’t fall too far. “It is understandable that city buyers want to get away from it all,” says Hugo Thistlethwayte of Savills Prime Purchase. “But there is a big difference between privacy and isolation. Homes that are part of a community, with good road and rail connections for work and school, are much more likely to hold their value in the long run. They will be seen by purchasers, not just as a weekend home, but also as a fulltime residence.” Quite often work journeys can involve, if not a daily commute, then regular trips to London. Which is where a knowledge of the railway timetable comes in handy. “If you can drive from your village home to a mainline station that is around 90 minutes from London, so much the better,” says Hugo. “It really helps to add to the appeal of a property.” But style is just as important as location. When it comes to the types of homes that are most likely to retain their value, period properties remain firm favourites, with Georgian houses particularly sought-after. “There is something that is uniquely English about a Georgian house,” explains Hugo. “Which is why purchasers often consider them to be the ideal country home. As a result, they tend to perform well in the market.”
❝ Homes that are part of a community, with good road and rail connections, are more likely to hold their value.❞ It’s not just architectural charm that makes Georgian properties popular, they also work well on a practical level. With spacious rooms, large windows and high ceilings, these houses are well suited to modern living. “There’s a flexibility about Georgian properties that gives them a broad appeal,” says Tim Buckley of Savills Salisbury. “Rooms are usually bright and light with scope to be updated to the changing demands of family life. A good example is the kitchen. This is often the hub of a modern home, but originally it would have been small and tucked away. However, thanks to their generous proportions, Georgian houses can be reconfigured to create a much larger family kitchen.” Georgian homes might well win the popular vote, but there are other strong contenders.“Rectories are very attractive for buyers,” says Charles Kannreuther of Savills Chester. “They are substantial family homes, but tend to be domestic in scale. Their location is also important. They have usually been built at the edge of the village, so they are close to the local shop and pub, but also have views over open countryside.” Equally popular are authentic houses that are typical of a particular area. For example, the top of everyone’s wish list in rural Oxfordshire and Gloucestershire is a house made of Cotswold stone, while in
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the New Forest the home of choice is a classic, thatched cottage. However, some heritage properties can be a challenge for both buyers and sellers. Tudor and Elizabethan homes may look beautiful, but they can be expensive to run. The main issue is the energy bills – an unmodernised, 15,000 sq ft house can cost £20,000 a year to heat. “Everyone is exercised about heating, upkeep and repairs,” says Tim Buckley. “At the start of each year, we get calls from homeowners telling us that they’ve decided to sell because they can’t afford another Christmas running up the kind of fuel bills they’ve just received.” As well as historic homes without central heating, the other kind of property to avoid is one that might soon have a 100 ft wind turbine next door. “These days, concerns over protecting an investment are at the forefront of most people’s minds,” explains Tim. “While the recent drive for renewable energy is commendable, a large wind turbine on your doorstep will have a negative impact on value and saleability.” From planning applications to train times, it certainly pays to do detailed research. That way you can be sure you’re really buying a dream country home.
Hugo Thistlethwayte, Savills Prime Purchase +44 (0)20 7881 2386 hthistlethwayte@prime-purchase.com Tim Buckley, Savills Salisbury +44 (0)1722 426 881 tbuckley@savills.com Charles Kannreuther, Savills Chester +44 (0)1244 323 234
ckannreuther@savills.com
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M A KI NG H I S T ORY From a beautifully restored historic home to a modern classic, we reveal how to create a country home fit for 21st century living Words Clive Aslet - 18 savills.co.uk/barometer
| COUNTRY RETREATS |
YOU WANT A COUNTRY HOUSE. You want one that is beautiful and really works in terms of 21st century lifestyle and technology. So is it better to renovate an old property, which might be rambling but has the charm of age, or start from scratch and create a building that makes history, rather than embodies it? “It’s a dilemma that faces would-be owners, particularly in those parts of the country where the supply of good-quality historic houses outstrips demand,” says Michael Gatehouse of Savills Newbury. Joanna and Peter Jensen decided to go down the restoration route when they fell in love with Ibthorpe Manor Farm, a handsome Grade II* listed house in Hampshire that dates from the reign of Queen Anne. “It was built around an enclosed yard, with threshing barns and stables,” says Joanna. “It gave Ibthorpe a ramshackle charm. It really was love at first sight.” However, a serious campaign of work was needed to make the house liveable. “We wanted an architect who was both sympathetic to the past and forward thinking,” says Joanna. They found just the man they needed in George Saumarez Smith of Adam Architecture.
B AC K I N T I M E At Grade II* listed Ibthorpe Manor, the renovation work ranged from rebuilding the Victorian wing to adding elegant new furnishings and lighting.
ON THE LIST
What to expect when you renovate an historic home You should get used to being inspected. An historic home is likely to be listed and will attract a lot of interest from the conservation officer. Pick experts with relevant experience. If your design team has credibility in the eyes of the authorities it will make things much easier. Keep an eye on costs. It is likely consultants’ fees will account for up to 25 per cent of the budget. Don’t forget to factor in VAT. Repairs and improvements to existing dwellings are normally rated at 20 per cent, which is a serious extra cost.
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| COUNTRY RETREATS |
The project began with a programme of historical research. “This established that there had once been a wing to the east of the house, perhaps containing a buttery,” explains George. He was able to obtain the necessary listed building consent and planning permission to build a family wing, with a big kitchen, on the old footprint. The project also included taking down a poorly built Victorian wing on the north side of the property and rebuilding it behind the seven-bay façade of the house. George believes this should encourage owners who fear that the listed status of their prospective home will unduly cramp their style. “While Grade II* listing does impose a lot of restrictions, we roughly doubled the size of the house,” he says. “Traditionally, old houses were very rarely preserved in aspic. They underwent continual cycles of change whenever a new owner came in.”
MODE R N C L A S S IC Baybridge Park takes the elegance of classic Georgian style and brings it up to date with a stylish modern interior. Facilities include an impressive leisure complex, complete with swimming pool.
HISTORY LESSONS
The key details that define Georgian style
REALISTIC EXPECTATIONS However, even with extensive renovations, it would be wrong to expect absolute perfection when it comes to the functioning of an old house. “No matter what you do, Georgian glass is apt to leak,” says Joanna Jensen. “We live like moles, sprinting through the main part of the house when it isn’t heated.” That said, the romantic appeal and historic significance of an old building makes such modest compromises a small price to pay. “You don’t do the restoration for yourself,” explains Joanna. “You have to think ahead 100 years. It’s less about you, all about your property.” So what about the costs? The accepted wisdom is that restoring an old house, especially a listed one, is more expensive than building from new. It’s also far harder to predict the final bill as you can never know what is lying behind the lath-andplaster walls until the work starts.
Original Georgian houses were built in the Classical tradition. It is a look framed by columns, cornices and triangular pediments. Grand homes often had an imposing staircase with a timber handrail and elegant iron balusters. Georgian houses used sash windows with small panes of glass separated by glazing bars. Rooms featured Classical fireplaces and plasterwork, along with high ceilings.
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| COUNTRY RETREATS |
For Michael Gatehouse, it’s an expense that’s well worth paying. “Old houses often occupy the very best locations,” he says. “Finding the equivalent today for a new build, and making it look like the new house belongs in the landscape, can be incredibly challenging.” INSIDE STORY This was exactly the challenge faced by architect Scot Masker of Pro Vision. He designed the Georgian-style Baybridge Park, which is also located in Hampshire. Although created from scratch, it is hard to believe that the house hasn’t sat in this beautiful countryside for over a century. There’s no doubt about the property’s wow factor. The understated character of the exterior, which might have been created by a Georgian master builder, hardly prepares visitors for the dazzling design of the interior. “At Baybridge Park, we were able to achieve exactly what the client wanted,” says Scot. “It’s a new house with a period feel. It has a games room, swimming pool and basement cinema. The one big advantage of building from scratch is that you get everything just as you want it.”
Before work began the site looked inauspicious. Part of it was occupied by a breaker’s yard, where lorry engines were reconditioned. All the existing structures were demolished and the site scraped back to the underlying chalk. The house now sits in beautifully landscaped grounds and has uninterrupted views across the countryside. It is a perfect setting for a grand country home that successfully combines a sense of heritage with state-of-the-art facilities. There has recently been a sea change when it comes to building country houses. A combination of good architects, a lack of quality historic homes and a flow of money out of London has created a new generation of attractive, impressive rural residences. “Like Baybridge Park, these are very high-quality buildings that use traditional materials but meet the needs of a modern lifestyle,” says Charles Chute of Savills Country Department. “For example, sustainability is now an important issue for many owners and there is no doubt that it is easier to incorporate the latest green technology into a new house than retro-fit it into an old one.” The main drawback to creating a new country home used to be the lack of craftsmen with the right skills. But Hugh Petter of Adam Architecture insists this is no longer the case. “There are hundreds of craftsmen coming out of the Building Crafts College at Stratford,” he explains. “The real worry is that there will be no work for them.” This is something that the vendors of Baybridge Park are intending to help with. They are moving on because they would like to do a similar project elsewhere.
Michael Gatehouse, Savills Newbury +44 (0)1635 277 705 mgatehouse@savills.com Charles Chute, Savills Country Department +44 (0)20 7016 3822, cchute@savills.com
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Richard Binning and Alex Lawson of Savills.
| COUNTRY RETREATS |
IT’S NOT DIFFICULT to see why rural estates have become so popular with investors. Savills Estate Benchmarking Survey reveals income from estates has grown every year since 2000, a strong result considering the economic climate. But what’s really catching investors’ attention is capital growth. The outstanding performance of the farmland market, with values up by 10.7 per cent, has ensured robust pricing for rural estates. “Farmland is seen as a secure base for investment, thanks to good arable profits in recent years,” says Richard Binning of Savills Rural. “It’s seen as a safe haven that offers significant tax breaks.” Along with arable land values, other estate assets have performed well. “The residential letting sector showed a total return of 4.5 per cent,” says Richard. “Let commercial property was also positive, with capital growth of 6.3 per cent and net income of 7.1 per cent.” Although woodland has not performed as well as farmland in recent years, the growing role of renewable energy is set to have a significant impact on values. “Interest in biomass energy has boosted demand for woodland and that is filtering through to higher prices,” explains Richard. Given the sustained rise in global commodity prices, perhaps it is not surprising that investors have focused on buying productive land and shown less interest in acquiring residential property. As a result, it’s not unusual for the principal house on a country estate to be sold separately, along with a parcel of adjacent amenity land.
BACK to the L AND We discover why prime country estates are catching the attention of smart investors
Words Olivia Cooper Photograph Amorfo
“This appeals to lifestyle buyers, who do not want to take on the business side of running a farm,” says Richard. However, this isn’t always the best investment decision. The marriage value of a mixed estate, taking account of all the elements,from land to houses and buildings, can actually be larger than breaking it up into separate parcels. “This can have a significant impact on the long-term investment,” says Alex Lawson of Savills Farms and Estates. “For example, owning a productive mixed estate has
A Good Sport
How to protect grouse moors
“Keeping grouse moors in peak condition is vital to maintaining their capital value, which is based on the 10-year average bag for the season. The key is to employ the right keepering staff and incentivise them. Also, take steps to improve the habitat – a carpet of heather will be the most productive. Finally, to minimise parasitic threats, stay informed about the latest scientific developments.” Alex Lawson, Savills Country Department
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substantial advantages when it comes to offsetting inheritance tax.” The impact of farmland investment can clearly be seen in the relative values of land and property. Over the past five years, the value of farmland and agricultural buildings has risen by 66 per cent, while the price of principal houses has fallen by 12.2 per cent. But this trend is not likely to continue. “The value of principal houses is levelling off and eased by just 0.1 per cent in the first half of 2012,” says Alex. “Once the residential market has recovered, we anticipate the return of premium prices and marriage values for the best estates.” But the quality of the house remains paramount as the market recovers. “Any blight tends to be magnified when the market is slower, allowing buyers to exploit flaws to negotiate the price,” explains Alex. “But prime estates remain in demand and can still generate a huge amount of interest.” If any further proof were needed that rural estates are a good investment, consider this: banks will actually fund purchases. “The one area that banks are keen to lend against is land,”says Alex.“So a lot of buyers are borrowing to fund purchases at the moment. Although many have significant cash reserves, interest rates are low, so it is often the most cost-effective way to buy right now.”
Richard Binning, Savills Rural +44 (0)1865 269 168 rbinning@savills.com Alex Lawson, Savills Farms and Estates +44 (0)20 7016 3789 alawson@savills.com
PROPERTY·PORTFOLIO
Country classics Grand rural residences that offer space, tranquillity and the best of country living
SCREEN GRAB
Loynton Hall
Near Newport, Staffordshire / Shropshire border A notable Georgian house overlooking parkland
This six bedroom house has many original features, including intricate plasterwork and fireplaces. It also has an integral one bedroom flat and outbuildings. EPC Rating = F. Guide £2 million / about 12.5 acres
Tony Morris-Eyton, Savills Telford +44 (0)1952 239 500, amorris-eyton@savills.com
- 24 savills.co.uk/barometer
| COUNTRY RETREATS |
Ridge Hill Manor
Nr East Grinstead, West Sussex
Green and pleasant
This seven bedroom house lies in a small estate of formal gardens, mature parkland and woodland. It includes a lodge and cottage, both with two bedrooms, plus a three bedroom gardener’s cottage.
Guide £4 million / 48 acres
Key features
Ruchlaw House Stenton, East Lothian
A Scottish classic
A fabulous example of Scottish baronial architecture, this nine bedroom property dates from 1663 and is listed Category B. It includes a panelled reception hall, library and double-aspect drawing room.
Offers over £1.75 million / 22 acres
Key features
Old College House Newmarket, Suffolk
Schoolhouse charm
Dating from 1867, Old College House lies in the picturesque village of Cowlinge. It is now a sympathetically renovated family home with six bedrooms, a family room, a music room and exceptional gardens of mature trees and shrubs.
Guide £1.25 million / 6.9 acres
Key features
• Galleried drawing room • Period features include exposed timbers and open fireplaces • Integral annexe for staff/house guests • Two Victorian greenhouses • Tennis court and paddocks • Garaging • Superb southerly views • EPC Rating = G
• First-floor drawing room with wonderful garden views • Kitchen with four-oven Aga • Two cottages • Three paddocks • Tennis court • Secluded, walled formal garden • Woodland • Courtyard of outbuildings
• Master bedroom with en suite bathroom • Five further bedrooms • Two en suite shower/bathrooms • Family bathroom • A spacious patio • Impressive vaulted dining hall • Stables, tack room and paddock • EPC Rating = F
Sophie Wysock-Wright Savills Haywards Heath +44 (0)1444 446 000 swwright@savills.com
Malcolm Leslie Savills Edinburgh +44 (0)131 247 3700 mleslie@savills.com
Ed Meyer Savills Cambridge +44 (0)1223 347 147 emeyer@savills.com
- 25 savills.co.uk/barometer
| COUNTRY RETREATS |
A que st ion of M A NOR S
Securing the future of a country house requires strategic planning, explains Crispin Holborow of Savills Country House Department OWNING A COUNTRY HOUSE is often the fulfilment of a lifetime’s ambition.Whether the aim is to preserve the house for the next generation, or enhance the value for when it is time to move on, it’s important that owners have a clear plan. Here are four areas worth considering.
1
Prioritise Maintenance
Even if a property is in tip-top condition when you move in this doesn’t mean that you can totally relax. A cyclical programme of repainting and repair is essential. With regular maintenance it is amazing how a house that was improved over two decades ago can still look as if it has just been finished. Most importantly of all, don’t forget valley gutters and drainpipes as these usually cause the most damage when there is a problem. Skimping on any element of the maintenance of the house at the outset is very likely to prove detrimental in the long run.
2
Cut Costs and Add Income
When it comes to cutting costs, green initiatives, such as solar power panels, biomass boilers and insulation, are effective ways to reduce energy bills. There are also significant grants available to offset the installation costs. As for income, renting out sheds, secondary cottages and solar parks can provide valuable additional revenue. These sources of income do not require too much
extra annual investment after the initial set-up costs and will help to ensure that the next generation will also be able to afford to live in the main house.
3 Ensure Privacy is Protected
Privacy is a key attraction of owning a country house. So, even if the public footpath down the drive doesn’t bother you, it may affect a future occupier. Taking steps to divert public paths, or buying extra land to protect your privacy, is worthwhile.
4 Be a Cautious Seller
Crispin Holborow Savills Country Department +44 (0)20 7409 8881 cholborow@savills.com - 26 savills.co.uk/barometer
It is tempting to sell surplus cottages or buildings for development when cash flow is low. But if these are close to the house, the arrival of near neighbours could undermine its value. It is better to sell off a piece of a field at the end of your land for development. Make sure it is landscaped first to guarantee you can’t see any new houses.
Chapter 3
M I L L ION POU N D CLU B
ON THE RIGHT TRACK There are 2.5 million holders of rail season tickets and they are a powerful force in the ÂŁ1 million-plus market. Homes within 60 minutes of London have always attracted a premium. But now, with better connections, houses in cities such as Oxford and Bath are joining the million pound club.
| MILLION POUND CLUB |
R ING of GOLD
London is circled by élite commuter towns where prices for family houses can easily reach £1 million. We take a tour around the capital’s ring of gold
Beaconsfield
A thriving market town in the Chilterns with a lively arts scene COMMUTE: Just 25 minutes by train to Marylebone; near the M40 and M25. SCHOOLS: “There is a grammar and an independent school, while Eton and Harrow are only 40 minutes away,” says Andrew Cronan of Savills Beaconsfield. ENJOY: The Swan Theatre and the Chiltern Shakespeare Company. IDEAL HOME: A period house with space for the family inside and out.
Words Claire Coleman Illustration Telegramme
COMMUTER TOWNS have always appealed to people who want to earn a London salary but enjoy a country lifestyle. However, some of these sought-after towns are genuinely in a league of their own. There is a collection of hotspots in a ring around the M25 where one home in three has an asking price of £1 million or more. We have highlighted five of them on our map (shown right). So what makes these towns so popular with affluent buyers? “They share the holy trinity of top property locations: excellent transport links, green spaces and good schools,” says Richard Winter of Savills Esher. “In fact, many of the towns and villages lie in regions that still have the grammar school system.” Then there’s the local housing stock. These areas typically have larger Georgian, Victorian and Edwardian homes that offer valuable space and flexibility. “The style of architecture is definitely part of the appeal,” says Guy Robinson of Savills Windsor. “As well as being ideal for family life, they bring real character to the towns.”
Add in a proper high street and it’s easy to see the attraction of areas that seem to belong to a quieter, more genteel time. In fact, according to social commentator Sarfraz Manzoo, it’s nostalgia that draws wealthy buyers to these quintessentially English towns. “We all have an inbuilt nostalgia for the childhood we remember, where we played outside and going to school did not involve two bus rides,” he says. “The desire to move out of London is a way to pass that childhood on to our own children.” But above all, it’s the location that earns a premium from buyers.They are looking for easy access to London for stylish nights out and well-paid jobs, combined with the community feel you only get in a small town. It’s this unique balance that gives élite commuter towns their golden touch.
Richard Winter, Savills Esher +44 (0)1372 461 900 rwinter@savills.com Guy Robinson, Savills Windsor +44 (0)1753 834 654 grobinson@savills.com - 28 savills.co.uk/barometer
ASCOT
A country town 25 miles from London, popular with wealthy foreign buyers COMMUTE: A 54-minute train ride to Waterloo; close to the M3, M4, M25. ENJOY: Monthly race meetings and the Royal Ascot festival every June. TRY: The Drawing Room restaurant at the Coworth Park hotel nearby. IDEAL HOME: “A custom-built house on the famous Wentworth Estate four miles away is the ultimate,” says Daniel Burstow of Savills Sunningdale.
Much Hadham
A Hertfordshire village of 2,000 people with an active community COMMUTE: Just under 40 minutes by train from the nearby Bishop’s Stortford station to Liverpool Street. SCHOOLS: “There’s an outstanding state primary and six secondaries within a 20-minute drive,” says Justin Godfrey, Associate Director of Savills. ENJOY: Tennis, bowling and golf clubs. IDEAL HOME: Period mansion houses or barn conversions.
Hartfield
A pretty Sussex village which has historic links to Henry VIII
Cobham
This Surrey town of 10,000 residents has a good stock of large family houses COMMUTE: “Forty minutes by train to Waterloo or use the fast line from Esher,” says Ian Camplin of Savills Cobham. SCHOOLS: There is ACS Cobham School, two prep schools and three independent secondary schools. RELAX: Golf, football, cricket, rugby tennis and riding are available locally. IDEAL HOME: A detached house in a secure, gated development.
COMMUTE: It’s a 25-minute drive to Tunbridge Wells and a 90-minute train ride into Charing Cross. SCHOOLS: Ten private and state secondary schools in a half-hour radius. ENJOY: “The countryside is as unspoilt as you can get close to London,” says Will Peppitt of Savills Country Department. IDEAL HOME: Five bedroom detached house with stables and paddock.
Super Suburbs
Property hotspots around the UK that outperform the local market Morningside in Edinburgh is a perfect example of a desirable enclave that commands a premium over the city centre. Just a 15-minute stroll from the city’s financial centre, properties here can cost 49 per cent more than other neighbourhoods. “There are excellent shops, good local schools within walking distance and even a theatre and independent cinema,” says Peter Lyell of Savills Edinburgh. “Everything is right on your doorstep, so it’s no surprise that once people move into the area they really don’t like to move out again.” The same is true of Westbury on Trym outside Bristol. “The housing stock is a mix of Georgian and 1930s houses, perfect for families,” says David Wild of Savills Clifton. “ This is in contrast to the city centre where you’re likely to find purpose-built flats more suited to singles and couples. The village has a great range of amenities, from independent bookshops to craft stores, and is also home to Bristol’s only Michelinstarred restaurant, Casamia.”
Six More Hotspots Areas that beat average city prices PREMIUM
SHEFFIELD: Fulwood MANCHESTER: West Didsbury LEEDS: Alwoodley LIVERPOOL: Gateacre BIRMINGHAM: Edgbaston CARDIFF: Cyncoed
+93 % +73% +56% +54% +35% +15%
The
BIGGER picture
From this grand Scottish mansion to a Cornish manor, you’ll be amazed at what the equity in a two bedroom London flat can buy around the UK Words Graham Norwood
Vellore House
A splendid seven bedroom mansion set in three acres with views of the Firth of Forth. Guide price: ÂŁ995,000
| MILLION POUND CLUB |
Shutterstock
OF ALL THE reasons people give for making the move out of London, there’s one thing everyone agrees on – you get a lot more for your money outside the capital. “There has never been a bigger price gap between London and the rest of the country,” says Yolande Barnes of Savills Research. “Back in 2005, the sale of a prime house in Wandsworth would have bought a country house at Wimborne in Dorset with a third of the proceeds left over. Now, just eight years later, the sale of that same Wandsworth property will buy two prime Wimborne houses with 14 per cent of the proceeds leftover.” Thanks to this huge price differential, London buyers have an opportunity to upsize to a property that is at least twice as large as their current home, and in some locations considerably bigger. For example, if you own a home in Islington it will be worth, on average, £485 per square foot, while homes in Kensington and Chelsea average £750 per square foot, according to Lloyds Banking Group. Of course, in many prime pockets values are substantially higher. Compare that with country costs: Berkshire is only £210 per square foot and Warwickshire is £210, while Hampshire is even better value at £190. AN ACTIVE INTEREST This equates to a lot of house for your money. So it’s not surprising that London buyers are active in key country markets. When it comes to homes within an hour of the capital, London buyers represent as many as 50 per cent of transactions handled by Savills. Further away, where train travel to London takes from 90 minutes to three hours, the proportion is 30-40 per cent. “The typical mover from London is a family that has two children, with one of the parents still working in the capital during the week,” explains Tony Morris-Eyton of Savills Telford, who markets homes in Shropshire, Staffordshire and Wales.
Trading Places From London to the country
The London Apartment:
St George’s Square, SW1
A two bedroom duplex apartment in one of Pimlico’s most prestigious squares. Price: £1.6 million
The Château: Plas Cilybebyll This nine bedroom château-style home near Swansea is set in two acres. Price: £1.5 million
The Manor: Tremeere, Cornwall An immaculate Grade II listed manor with seven bedrooms and 9.8 acres of grounds. Price: £1.35 million
The Historic Home:
The Brookhouse, Shropshire This beautiful four bedroom house dates from the 17th century. Price: £995,000
For details of these properties, please go to savills.co.uk
- 31 savills.co.uk/barometer
“They are looking for a substantially bigger house than their London home – often an attractive former rectory or farmhouse.” For these upsizers, space is key. They require plenty of bedrooms and extensive gardens. The chance to own amenity land, for example a paddock for the children’s ponies or an orchard, is an added incentive. There is another, less obvious reason why Londoners are looking for homes outside the capital – school fees. “Even having purchased a large home in the country, there is often money left to put towards the cost of education,” says Paul Jarman of Savills Bath. WORKING IT OUT The ability to work from home has had a significant impact on the location of properties that upsizers are buying. Now that broadband and 3G are available across 99 per cent of the UK, buyers can move much further away from London. “Being able to work effectively from home means that the commuting week can be shortened by a day, sometimes two,” says Julian Archard of Savills Cheltenham. The most adventurous upsizers can sell an apartment in London and buy nothing less than a mansion in Scotland or a manor house in Cornwall, and still have change. “It is an unique opportunity to enjoy a completely different lifestyle in an outstanding property,” says Tony MorrisEyton. “Given the price gap between the capital and the country, these are no longer fantasy homes – for many Londoners, they are now genuinely affordable.”
Tony Morris-Eyton, Savills Telford +44 (0)1952 239 500 amorris-eyton@savills.com Paul Jarman, Savills Bath +44 (0)1225 474 543 pjarman@savills.com Julian Archard, Savills Cheltenham +44 (0)11242 548 022 jarchard@savills.com
PROPERTY·PORTFOLIO
Town and country Elegant family homes that strike the perfect balance between country living and city style
The North Canonry Salisbury, Wiltshire
A fine Grade II* listed house with exceptional gardens leading down to the River Avon
Perfect setting
This five bedroom house, which is located in the cathedral close, has no shortage of historical features and an exceptional 590 ft garden.
Guide £5.5 million / 1.7 acres
Charles Stone, Savills Salisbury +44 (0)1722 426 820, cstone@savills.com - 32 savills.co.uk/barometer
| MILLION POUND CLUB |
Peveril House Swanage, Dorset
A Dorset delight
Peveril House is regarded as one of the most prestigious properties in Swanage. Constructed in the mid 19th century, the property is beautifully presented and retains many original features. Set in almost an acre of delightful and secluded grounds with views across Swanage Bay.
Guide £1.85 million / 1 acre
Key features
20 Royal Crescent Bath, Somerset
First in class
This Grade I listed residence has been recently refurbished throughout. The house has five bedrooms over four storeys and includes a modern kitchen / breakfast room that overlooks a formal landscaped garden.
Guide £3.2 million / share of freehold
Key features
Camilla Lacey Westhumble, Surrey
Spacious living
Built in 1919, this Surrey Hills property has recently been extensively upgraded. The result is an impressive and quite unique country house of enormous character, with a wealth of preserved period features, that is perfectly set up for 21st century family living.
Guide £3.5 million / 2.1 acres
Key features
• Reception hall with terrazzo flooring • Six bedrooms • High ceilings • Many original character features • Exposed strip wood flooring • Luxuriously appointed bathrooms • Sea views from principal rooms • Beautifully landscaped gardens • EPC Rating = E
• Beautiful views across the crescent to the city • Grand reception hall • Two main reception rooms with spectacular high ceilings and period features • New kitchen / breakfast room designed by a leading architect • EPC Rating = D
• Six bedrooms, dressing room and five bath / shower rooms (one en suite) • Reception hall, drawing room, dining room, sitting room and study • Second floor billiard room, gym area and family room • Heated swimming pool, pool house, barbecue area and summerhouse • EPC Rating = E
Keith Fensom, Savills Canford Cliffs +44 (0)1202 708 888 kfensom@savills.com
Luke Brady, Savills Bath +44 (0)1225 454 501 lbrady@savills.com
Andrew Giller, Savills Guildford +44 (0)1483 796 820 agiller@savills.com
- 33 savills.co.uk/barometer
| MILLION POUND CLUB |
On t he S POT
Sophie Chick of Savills Research on three “mini-London” hotspots across the UK with strong demand for £1 million-plus homes
Cambridge
Not so long ago, trains used to take two hours to get from Cambridge to London. Today that is down to just one hour and eight minutes. This famous university city now offers affluent homebuyers not only a historic city centre, but also a feasible daily commute into London. This journey is greatly helped by the fact that trains arrive at Liverpool Street, which is within walking distance of a large number of the biggest finance houses in the City. Although a fair smattering (15 per cent) of all purchasers in Cambridge are from overseas, lured by the city’s distinguished history and architectural beauty, the majority (85 per cent) are from the UK. Among them is a significant proportion of British scientists and engineers employed in the so-called “Silicon Fen”. Given the London commute and local work opportunities, it’s not surprising that in the past three years some 18 per cent of Savills homebuyers have been happy to pay over £1 million for their property.
2 Oxford
Oxford may be only 10 minutes closer to London by train than Cambridge, but house prices here are much higher, with 39 per cent of homes sold by Savills going for over £1 million. Although Londoners make up 17 per cent of buyers in the £1 million to £2 million bracket, and 30 per cent of £2 million-plus homes, the majority are from Oxfordshire. They work in commerce or the public sector, as opposed to financial services.
Sophie Chick Savills Research +44 (0)20 7016 3786 schick@savills.com - 34 savills.co.uk/barometer
3 Bath
When it comes to beautiful Georgian architecture, it’s difficult to match the World Heritage site of Bath. The sweeping 18th century Royal Crescent has to be one of the most handsome places to live in the UK, while the city centre is among Britain’s finest (just ask Jane Austen). Famed for its genteel character and sedate cream teas, rather than a fast pace and urban buzz, Bath attracts a large number of well-heeled buyers. That is why 37 per cent of the homes sold by Savills change hands for more than £1 million. This city of soothing spas and graceful crescents has an enduring appeal for hard-pressed Londoners, who currently make up 34 per cent of all buyers above the £1 million price mark. What’s more, 45 per cent of these purchasers continue to work in central London once they have bought in Bath, undeterred by the commute of one hour 24 minutes by train into Paddington.
Words: Christopher Middleton. Statistics based on research of Savills properties
1
Chapter 4
S I LV E R L I N I N G
HOME FROM HOME In England and Wales, 1.57 million people have a second home, with Cornwall being the most popular location. When it comes to the most active buyers, the “grey pound� currently dominates the UK second-home market. Equity-rich, over-50s buyers currently account for half of all second-home purchases. Barometer online
For the latest insights into UK second homes, please visit savills.co.uk/barometer
| SILVER LINING |
MASTERCLASS
PIC T U R E PE R F EC T
When it comes to finding a second home in the country, it’s difficult to beat this idyllic house in the Cotswolds Words Ruth Corbett
- 37 savills.co.uk/barometer
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IF YOU ARE looking for the ideal second-home location, the Cotswolds is in a class of its own. It is almost a fantasy dreamt up by world-weary Londoners, with peaceful villages, quaint pubs and open countryside. However, finding the perfect home in the Cotswolds is not as easy as you might think. It’s the combination of elements buyers are looking for that presents the challenge. For over-50s buyers, who now dominate the market, this typically includes an historic house, a refurbished interior, plenty of room for guests, good transport and a thriving local community. It’s quite a list. So what would the ideal Cotswolds house actually look like? The answer might well be The Malt House, a beautiful Grade II listed, 17th century house in Broad Campden. For three of its four centuries this was the local malting house, where cereal grain was converted into malt for use in brewing beer. For the past century the house has been used as a single family dwelling, set in 2.6 acres of grounds. “In terms of its look and location, The Malt House sums up the appeal of a true Cotswolds home,” says Giles Lawton of Savills Country Department. “It has real character and is located in a thriving
On the Wish List Mark Oliver of Savills East Anglia on the extras popular with buyers
GUEST ACCOMMODATION Whether it’s used full time, for nanny or granny, or occasionally to house extra visitors, a separate guesthouse or cottage is highly desirable.
SWIMMING POOL The crucial element is whether the pool is indoor or outdoor. The latter is widely regarded as a liability, while a well-designed indoor pool adds significantly to the value of a property.
BOATH OU S E If you’re lucky enough to have a water frontage, a boathouse solves a lot of storage problems.
village, which is a big draw for many second-home buyers. They want a proper community, not a dormitory town.” Inside, The Malt House lives up to the expectations of even the most demanding buyer. It has retained its historic character, with plenty of original features, but has been updated to meet the needs of a modern family. For example, five of the seven bedrooms have en suite bathrooms, and there is a large, practical kitchen/ breakfast room for family meals. Despite its size, the house has a warm, welcoming atmosphere. Exposed timber beams, mullioned lead windows and cosy window seats create the authentic country feel that city-based buyers are looking for. There’s also plenty of room for entertaining, with a drawing room, reception room and dining room, as well as separate guest accommodation. “The house comes with an annexe, which has its own entrance,” says local agent Nick Rudge of Savills Banbury. “It’s ideal for guests as it has its own sitting room and three bedroom suites. Of course, it could also be used as a home office for people who want to divide their working life between London and the Cotswolds, which is now a requirement for an increasing number of buyers.”
BRIEFING
The Malt House Broad Campden Charming Cotswolds home located in a conservation area. Includes guest accommodation and thatched summerhouse.
-38 savills.co.uk/barometer
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The outside spaces are equally well thought out. From the pretty thatched summerhouse to the elegant garden, complete with its own small stream, it’s a peaceful haven that perfectly complements the house. The final piece of the second-home puzzle is transport, which is a deal-maker for most buyers. “No-one wants to take hours getting to a home in the country,” says Giles. “People want to spend time in their property, not in their car.” The good news it that The Malt House is just six miles from Moreton-in-Marsh, which has a direct rail service to London Paddington, taking around one hour 35 minutes. It’s a practical consideration that underlines the property’s appeal. “This is a classic Cotswolds country house in an area that is a perennial favourite for a second home,” says Arabella Youens, Property Editor of Country Life. “Buying a house like this is a sensible move because, while the buyer might only want it as a second home, if the house comes with sufficient land and separate guest accommodation, it’s also ticking all the boxes for a future buyer who is looking for a classic family home. This keeps one’s options open to both markets when it comes to selling.”
Home from Home Top 10 locations around the country for over-50s buyers
1. Cornwall 2. Cambridgeshire 3. Devon 4. Suffolk 5. Wiltshire 6. Perthshire 7. Somerset 8. Gloucestershire 9. Norfolk 10. Hampshire
- 39 savills.co.uk/barometer
It’s this element of adaptability that marks out The Malt House. Of the few quintessentially English country houses available in the Cotswolds, those that have flexibility are the most sought after. “The Malt House can accommodate changing family life,” says Giles. “There’s plenty of space to welcome children and partners, but it’s also intimate enough for a couple to enjoy.” When it comes to the wider Cotswolds market, it is a good time to be an equityrich, over-50s buyer. Country house prices, even in prime parts of the Cotswolds, are very attractive at the moment. “Really good country houses don’t come up for sale that often,” says Giles. “This is particularly true of the Cotswolds where there is a limited supply of properties in the best locations. The currently favourable market offers buyers a rare window of opportunity to find their dream second home.”
Giles Lawton Savills Country Department +44 (0)1865 339 700 glawton@savills.com Nick Rudge, Savills Banbury +44 (0)1295 228 000 nrudge@savills.com
SUR F & TUR F Homes by the sea command a premium. But if buyers look a few miles inland, they can get more for their money Words Andrew Gillingwater Portrait Andrew Montgomery
Phillippa Dalby-Welsh and Peter Ogilvie of Savills.
- 12 -
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The Water Margin IT’S NO SECRET that prime postcodes play a key role in property prices. When it comes to country homes, what is less well known is the value of a view, especially over the coast. In fact, for those looking to buy a second home, the value of a sea view can have a significant impact on their budget. “A view over water adds up to 50 per cent to the price of a home in some cases, but owning the frontage would add as much as 100 per cent,” says Phillippa Dalby-Welsh of Savills Country Department. “There’s an element of prestige about being on the water – it’s both the scarcity of coastal properties and the lifestyle that comes with them that people are paying for.” Just being in a seaside town is enough to boost prices. An analysis of 10 prime coastal locations across Britain by Savills shows that property values are on average 35 per cent higher than those for comparable homes just a few miles inland. “The premium depends on the area and the characteristics of the property,” says Phillippa. Coastal locations that offer the complete package of attractive housing stock and direct access to water are among Britain’s most élite property hotspots. Nowhere is this more true than in Sandbanks, Dorset. Dubbed Britain’s Monte Carlo, this unique, mile-long spit of sand between Poole Harbour and Bournemouth is home to some of the country’s most exclusive and expensive waterfront properties. “Sandbanks became particularly attractive to buyers about a decade ago as the second-home market boomed,” explains Phillippa. “The limited supply of housing and the attractions of the surrounding area – blue flag beaches, Poole Harbour, golf and sailing clubs – give Sandbanks an air of exclusivity.” A six bedroom home with views over the harbour in Lilliput, just a mile
Smart inland alternatives to prime waterside locations
Norfolk
COASTAL LOCATION: Brancaster Staithe INLAND LOCATION: Sedgeford DISTANCE INLAND: 10 miles PRICE DIFFERENCE: 30 per cent “We recently sold Staithe House (above). It’s a really fabulous house with marsh and river views. It had a guide price of just over £3 million. If that same house were situated 10 miles inland, the price would drop by around 30 per cent.”
Louis de Soissons, Savills Norwich
South Hams
COASTAL LOCATION: Dartmouth INLAND LOCATION:Totnes DISTANCE INLAND: 12 miles PRICE DIFFERENCE: 38 per cent “Deans Lodge in Dartmouth, which is a large house with water frontage (above), was sold last year for £2 million. A similar property in Totnes, a few miles inland, would go for £1.25 million.”
Richard Addington, Savills Exeter - 41 savills.co.uk/barometer
outside Sandbanks, would sell for around £2.3 million. If it had a prestigious Sandbanks address, the price would easily reach £4 million. The value of a view isn’t restricted to coastal properties. Riverfront homes also command a premium. “In the east of England, a home with a prime river view will always trump the equivalent property on the coast,” says Peter Ogilvie of Savills Ipswich. “A riverfront house has substantial benefits. For example, properties with prime river frontage often come with a mooring, which allows the owners to take a boat out and use the water. Few people are going to do that in the sea.” Phillippa Dalby-Welsh points out the media has put the focus on prime waterfront destinations. “These include Salcombe, Dartmouth and Aldeburgh, as well as the most exclusive seaside villages of Bosham, Beaulieu, Brancaster and Rock,” she says. “But by moving just a few miles inland, buyers can get far more for their budget.” The secret is to target inland towns that have the same types of housing stock and facilities as their famous coastal neighbours. “In the south-west, there are towns like Brockenhurst and Kingsbridge that offer good value for buyers,” says Phillippa. “While in the east and north, Framlingham and Alnwick are over a third cheaper than the nearest seaside towns.” So, if you’re thinking about buying a home on the coast, it might well be worth casting your net a little further afield.
Phillippa Dalby-Welsh Savills Country Department +44 02 (0)7409 8823 pdwelsh@savills.com Peter Ogilvie, Savills Ipswich +44 (0)1473 234 816 pogilvie@savills.com
PROPERTY·PORTFOLIO
The great escape Enjoy a slower pace of life with these unique homes, each set in an idyllic location
37 Esplanade Fowey, Cornwall
Waterfront townhouse with stunning views of Fowey Harbour
This attractive early Victorian townhouse occupies a prime position on the edge of Fowey Harbour on the town’s principal waterside road, The Esplanade. With delightful three bedroom accommodation arranged over four floors, the property enjoys superb southerly views. EPC Rating = E.
Guide £1.175 million
Jonathan Cunliffe, SavillsTruro +44 (0)1872 243 200, jcunliffe@savills.com - 42 savills.co.uk/barometer
| SILVER LINING |
The Granary
Castletown, Isle of Man
Quayside loft living
The Granary enjoys a unique setting on the Quay at Castletown. Laid out over five floors, this newly converted harbourside property has been renovated to an exceptionally high standard with pine floors and exposed roof timbers. The roof-top conservatory area opens on to a terrace with views across the bay.
Guide £1.35 million
Key features
Cromwell Wing
Thurland Castle, Lancashire
Castle conversion
The Cromwell Wing is an impressive conversion that forms a large part of a Grade II* listed moated castle. Well presented throughout, the property has been beautifully finished, combining modern design with fabulous historical features, such as original fireplaces and elegant ceiling cornices.
Guide £1.2 million
Key features
Roundhill
Whitsbury, Hampshire
Rustic charm
This exceptional property is brimming with character and charm. Enjoying a wonderful rural setting 10 miles from Salisbury, Roundhill Farm House has undergone sympathetic restoration and improvement. The wealth of features include a thatched roof, exposed beams and inglenook fireplaces. EPC Rating = E.
Guide £1.15 million
Key features
• Located in the town centre in a stunning marine setting • Flexible accommodation of up to three bedrooms and three bathrooms • Self-contained duplex apartment • Large double garage • The original lifting wheel, preserved in a glass atrium
• Master bedroom suite • Two further en suite bedrooms • Well proportioned kitchen/reception • Grand drawing room with attractive original features • Parking for two cars • 10 acres of landscaped communal gardens
• Master bedroom with large dressing room • Three further bedrooms • Spacious dual-aspect drawing room • Kitchen/breakfast room with Aga • South-west facing terrace • Private garden • Grade II listed barn
Mark Holden, Savills Wilmslow +44 (0)1625 417 454 mholden@savills.com
Ben Pridden, Savills York +44 (0)1904 617 820 bpridden@savills.com
Emma Duffin, Savills Salisbury +44 (0)1722 426 800 eduffin@savills.com
- 43 savills.co.uk/barometer
| SILVER LINING |
A t you r L E I SU R E
Picking the right location and being organised will help to get the best out of a second home, says Andrew Perratt of Savills Glasgow THERE ARE OVER 170,000 holiday homes in Britain. Whether they are bought for a family to enjoy or for rental income, it requires some careful planning to ensure that a property is the right investment and, if required, will deliver valuable revenue.
to the interior, if your family is keen on walking, skiing or boating, you will ideally need a separate room to store kit so you don’t need to bring it with you every time.
Rental Lowdown
To attract the best rental income, your property must look good inside and out as most renters make their It’s not easy, but when it comes to buying a holiday home, decisions based on brochures and websites. It might be try not to let your heart rule your head. A quaint cottage worth appointing a holiday letting specialist. For a fee, down a narrow country lane might be your dream, but typically 20 per cent of rental income, they will advertise keep in mind the practicalities. Low-maintenance homes your home, manage bookings and look after the property. that are easy to get to should be at the top of your list. You Finally, think about hiring an accountant to maximise should also be aware of local environmental factors. Some the financial benefits of renting out your holiday home. attractive areas can carry risks. If you Providing you make the property are buying near the sea or a river, find available for rent for at least out about flood risk. There might 140 days over a 12-month period, also be restrictions about owning you can offset furniture, decoration and selling a property if it is in an and running costs (including area of outstanding natural beauty. insurance, agency and accountancy fees) against tax on rental income. Take it Easy You are also often allowed to claim Andrew Perratt You will enjoy your property a lot transport costs for occasional visits Savills Glasgow more if it is easy to use. Unless you to check the property. +44 (0)141 222 5874 are a very keen gardener, go for a Although owning a holiday home aperratt@savills.com home that has easy-to-maintain does require a little organisation, the gravel or decking. When it comes rewards can be great.
- 44savills.co.uk/barometer
Words: Chris Partridge
Choose Carefully
Chapter 5
IN V EST MEN T POT EN T I A L
FINDING THE KEY TO GROWTH The rental market is growing. By 2016, Savills estimates one in five households in England will rent in the private sector, which is good news for landlords. But it’s not just the buy-to-let market that is expanding. There are exciting opportunities for landlords and investors in the commercial and rural sectors.
BE AT the R ATE The buy-to-let market is resilient. But how can investors boost the yield on their rental property? Words Mark Palmer Portrait Andrew Montgomery
Jane Ingram of Savills Residential Lettings believes investors can beat the average yield on rental property.
| INVESTMENT POTENTIAL |
Location: Roof Terrace at Sanctum Soho Hotel, London
IT’S ONE OF the great comebacks. The financial meltdown of 2007 turned the buy-to-let market into a no-go zone for most investors. But over the past two years the London market has performed so well that private investors, often disappointed with mediocre returns from savings accounts, are moving into the sector. “The buy-to-let market is underpinned by strong demand from renters,” says Jane Ingram of Savills Lettings. “High prices in the residential market, combined with a lack of mortgages, have created a large pool of tenants.” The statistics speak for themselves. Ten years ago, the number of private rented households stood at 2.5 million. Today that figure has soared to 4.8 million. Renters are also older, renting for longer and spending more of their hard-earned money. According to research by Savills, a tenant now pays 31 per cent of their salary to rent a typical two bedroom home. The challenge for investors is how to earn a healthy return. The average gross income yield is 5.8 per cent. But Savills believes this figure can be increased considerably. “If you want to attract a premium rent, the first step is to look carefully at the product you are offering,” says Jane. “For example, you’ll need the right furniture to impress a tenant. You might need to think about added extras, such as a cleaner. If a rental property is the best in class, then it will earn the landlord a premium.”
High prices in ❝the residential
market, combined with a lack of mortgages, have created a large pool of tenants.❞ Another smart move for investors is to look outside of London. Although the capital is often a focus for investors, rising property values have weakened rental yield. In fact, the UK’s top yielding postcodes are mostly in the Midlands and northern England, in some cases delivering in excess of 7 per cent. “Urban centres, such as Manchester, Leeds and Birmingham, attract large numbers of professional, affluent tenants, as well as students attending university,” says Jane. “The downside for landlords, however, is that the properties they buy are likely to see lower capital growth than in London.” It’s worth keeping your eye out for specific areas that are likely to see growth. For example, the proposed new HS2 rail link between London and Birmingham – cutting down journeys between the two cities to just 49 minutes – is likely to
bolster the rental market in Britain’s second largest city as it will be possible to commute to the capital. However, experts are quick to sound a note of warning to unwary speculators. “Buy-to-let is not about making a quick buck, but playing a longer game, so that you can improve on the capital value of your investment,” says Theresa Wallace of Savills Sevenoaks. When it comes to purchasing a property, there are two options for investors looking to cut costs and boost yields. They can buy a property at under-market value and renovate it to a high specification, or they can purchase off-plan from a developer. “One of the best opportunities for an off-plan investment is to try to secure your purchase in the earliest phases of a development launch,” explains Theresa. “You will often find that the first phase of a development will be offered at the lowest values to encourage initial sales, but prices will increase with subsequent phases.” With demand for rental properties rising and tenants spending more of their salary on rent, there has never been a better time to be a landlord.
Jane Ingram, Savills Lettings +44 (0)20 7824 9048 jmingram@savills.com Theresa Wallace, Savills Sevenoaks +44 (0)1732 789 769 twallace@savills.com
Crossing the Void
Void periods, when properties are vacant during tenancies, can have a big impact on rental income. Here are three ways to keep them to a minimum KEEP THE HOME FIRES BURNING: Even when you have no tenant, make sure that the
BE REALISTIC: Renting is seasonal. If your tenant moves out in mid-winter, rather than the
PRIORITISE MAINTENANCE: Don’t delay any repair work that needs to be done as this will
property is warm, clean and ready for anyone to move in straight away. Hire furniture if necessary, as empty properties stay on the market longer than furnished ones.
busier spring or late summer months, you may have to accept a lower rent. It’s better to take an offer that does not completely meet expectations rather than leaving the property empty.
put off most prospective tenants. Also, tenants usually have a preference for managed properties. It gives them confidence that any problems will be dealt with swiftly.
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Growing IN TER EST
Property and land are key assets for private investors. Four Savills experts reveal the best way to invest a £5 million windfall
Office Life
Words Peter Buhlmann Illustration Jitesh Patel
Stephen Down Savills Central London Investment THE PRIME office markets in central London are the hunting ground of the overseas super rich. As a result, £5 million won’t buy much and yields are low. For those with an appetite for a little more yield and risk I would advise looking at alternative locations. Crossrail will undoubtedly lift property values along its route and we recommend areas such as Bloomsbury, Farringdon and Smithfield, which are attracting legal, media and technology SMEs. We also continue to like the South Bank and believe the completion of the Shard will assist values in a rapidly changing location. Recently refurbished townhouses and multi-storey Victorian industrial buildings remain popular with occupiers in all these areas. Tenancies with an average lease term of five to 10 years should yield 6-7 per cent, depending on lease length and location, compared with 4 per cent in Mayfair and St James’s. Stephen Down, Savills Central London Investment +44 (0)20 7409 8001, sdown@savills.com
Talking Shop Jeremy Lovell Savills UK Investment WHILE CONSUMERS’ retail habits are evolving, driven by the internet, shop investments still remain a favourite with private investors. A buyer with £5 million has the chance to spread their risk by buying two or three properties. My leaning would be towards prime freehold shops in affluent south-east towns.The size and configuration of the retail outlet should match current occupational demand. Good covenants are vital, allowing the investor to sleep at night. I would recommend looking for leases with seven to eight years or more left. This will carry the investor past the worst of the current recession before having to confront a lease renewal. I would also look for clean overriding leases on full repairing and insuring terms, where the tenant takes responsibility for the property.This keeps management (and costs) to a minimum. The perfect shop will also have been recently let or renewed at a market rent, giving the buyer the perfect platform upon which to enjoy future rental growth. Jeremy Lovell, Savills UK Investment +44 (0)20 7409 8745, jlovell@savills.com
- 48 savills.co.uk/barometer
A Store of Capital Ideas
Sowing the Seeds Christopher Miles Savills Farm Agency THE CASE for investing in land really is compelling. Capital growth has been higher than 150 per cent over the past six years and we’re predicting another 30 per cent over the next five. It’s a finite resource, so in the long term it is a fantastic performer and a great store of wealth. Investors should primarily be looking in the south and east. A budget of £5 million might buy 500-600 acres. Yields are typically 2-3 per cent, but returns can be boosted through renewable energy schemes, conversion of buildings, leisure activities or even hitting the jackpot by having land allocated for development. It may be a home as well as an investment and there are some bargains to be had in the residential farms sector. I’d consider land to be the bedrock of any portfolio. For investors, quality and location are the key drivers. Quality land generates the yield, but locations close to cities and attractive countryside may be more relevant to capital value. We are in an agricultural renaissance and the cycle has only just begun. Christopher Miles, Savills Farm Agency +44 (0)1603 229 235, cmiles@savills.com
David Williams Savills National Development I WOULD invest £5 million in a multi-let industrial estate within the M25. Although multi-let investments require more management time, investing in different tenants and covenants spreads the risk. With varied lease terms one can gradually increase the rental to maximise yield and investment value. Before making the investment, it is important to research demand and accessibility. In this regard, Greater London has always been popular with occupiers due to the constant need to service the capital. The supply of suitable sites has diminished as former shed sites have been put to alternative uses,such as residential. As a result, values have risen. At the same time we are seeing increased demand from occupiers for good quality product in the right locations. It’s worth bearing in mind the impact of internet shopping on the sector, which has led to competitive occupational demand from “e-tailers”, as well as parcel distributors who need to be located near the capital. David Williams, Savills National Development +44 (0)20 7409 8709, dwilliams@savills.com
❞
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PROPERTY·PORTFOLIO
Stylish living A selection of the UK’s finest rental properties, from elegant rural retreats to sophisticated penthouses
SCREEN GRAB
Sherwood House Denham, Buckinghamshire
An exceptional family home set in magnificent mature grounds and gardens with a tennis court and large outdoor swimming pool
On the right track
The house is just 1.5 miles from Denham station and a half-hour train journey into Marylebone. Along with eight bedrooms and seven bathrooms, five of which are en suite, there is also a gate lodge with two bedrooms for staff. EPC Rating = E.
Guide £18,000 per month
Claire Pincott, Savills Beaconsfield +44 (0)1494 731 960, cpincott@savills.com - 50 savills.co.uk/barometer
| INVESTMENT POTENTIAL |
Arlington Street London, SW1
London views
The Old Rectory Swyncombe, Oxfordshire
Stunning location
A newly refurbished, contemporary-style duplex penthouse overlooking Green Park, with two spectacular roof terraces and far-reaching westerly views. With hardwood floors throughout, it offers spacious open-plan living space and three principal bedroom suites with additional staff accommodation. The apartment is fully air-conditioned, with lift and porter.
Set in beautiful rolling Oxfordshire countryside this recently refurbished, spacious family home has stunning surroundings with views over open countryside. Within a 10-minute drive of the thriving market town of Henley-onThames, the M40 gives good access to London and the Midlands, and the busy city of Oxford is a 25-minute drive.
Key features
Key features
Guide £10,000 per week
Guide £5,950 per month
Albion Riverside Battersea, London SW11
On the river
This outstanding four bedroom modern penthouse of over 6,200 sq ft is located in a building designed by world-renowned architects Foster and Partners. It has spectacular views of Chelsea Embankment and the River Thames. On-site amenities include a residents’ gym, swimming pool and 24-hour concierge services.
Guide £14,500 per week
Key features
• Overlooking Green Park • Four bedrooms • One open-plan reception room • Four bathrooms • Two west-facing roof terraces • Parking by separate negotiation • EPC Rating = C
• Five bedrooms • Four bathrooms • Four reception rooms • Garden and terrace • Recently refurbished • Stunning rural location • EPC Rating = C
• Master bedroom with a fully fitted double dressing room and en suite bath and shower room • Three underground parking spaces • Glass staircase to mezzanine level • State-of-the-art, drop-down television • EPC Rating = D
Mark Tunstall, Savills Knightsbridge +44 (0)2o 7590 5069 mtunstall@savills.com
Alison Bird, Savills Henley +44 (0)1494 843 002 ajbird@savills.com
Gilly Hayden, Savills Mayfair +44 (0)20 7590 5073 ghayden@savills.com
- 51 savills.co.uk/barometer
| INVESTMENT POTENTIAL |
A de g ree of DI F F E R E NC E
We ask Marcus Roberts of Savills Student Investment and Development about the best ways to invest in student housing
student accommodation?
A. Often the first step is parents buying a property, usually with more than one bedroom, while their child is at university. The additional rent helps to offset running costs. Once the child graduates, they can continue to rent out the property, which may gain in value.
Q. What should prospective investors look for when choosing a student property?
schemes, planning and university growth as these may affect future occupancy.
Q. What are the options for those who are wanting to invest on a large scale?
A. Purpose-built student accommodation is proving popular with large-scale investors. Typically these are blocks of 50 to 1,000 rooms. They are usually laid out in a “cluster” format, which means that they have en suite bedrooms with shared kitchen and dining areas.
A. Pick cities that have well-regarded universities and a large student population. London, Edinburgh or Newcastle are good examples. Proximity to the university campus and good transport links are also important.
Q. How about investors who don’t want the risk of ownership in a single asset?
A. There are investment funds, such as those run by Crosslane or Brandeaux, which spread investment over various accommodation options. These usually take minimum stakes of around £20,000. Ideal if you don’t want to be a landlord.
Q. What returns can investors expect?
Q. What should investors be aware of?
A.The standard of student accommodation has risen in recent years. Students are a customer and, along with their parents, now have high expectations in terms of service and quality of accommodation. If acquiring a property, look at competing
Q. What about smaller investors?
A. There are fractional schemes that allow investors to buy single rooms in a university block. These are often sold with guaranteed rental income for a period of time. Many overseas buyers are attracted to this option.
Marcus Roberts Savills Student Investment and Development +44 (0)20 7016 3799 mroberts@savills.com - 52savills.co.uk/barometer
A. Around 6-8 per cent net is the norm, but investors need to take account of maintenance costs and any utilities the tenants aren’t covering. Purpose-built accommodation can also offer 6-8 per cent returns, but there are upfront costs to running a large scheme. Property funds vary but typically offer annual returns of 10-12 per cent gross.
Words: Laura Latham
Q. How do most individuals invest in
Chapter 6
A WA L K I N T H E PA R K
THE GREEN DIVIDEND The parks of south-west London are sought-after by overseas as well as domestic purchasers. In the past three years 39 per cent of Savills sales in the park areas of Richmond, Barnes, Wimbledon and Putney have been to foreign buyers. Green spaces are also creating hotspots in cities around the UK.
| A WALK IN THE PARK |
MASTERCLASS
PA R K L I F E
We take a tour of historic Clarence House in Richmond and discover why London’s parks are a growing attraction for overseas buyers Words Damon Syson - 54 savills.co.uk/barometer
| A WALK IN THE PARK |
BRIEFING
Clarence House Richmond One of the area’s ďŹ nest houses. The original William and Mary architecture has been updated to create an elegant modern home.
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| A WALK IN THE PARK |
LONDON IS ALMOST defined by its green spaces. Hyde Park and Regent’s Park are just as famous as Big Ben and Madame Tussauds. So it’s no wonder that buyers have always been attracted to homes nearby. Now purchasers, including those from overseas, are turning their attention to the elegant parks of south-west London, creating new prime pockets in some of the capital’s leafiest suburbs. “A couple of years ago overseas buyers would have been looking for a central London home,but now they are considering the suburbs,” says Lindsay Cuthill of Savills South-West London. “Demand has risen in areas like Richmond, Barnes, Putney and Wimbledon, especially for family homes close to parks and commons.” It’s not difficult to see the attraction. As well as owning a larger home than in central London, owners get all the benefits of fresh air and parkland, but only have a relatively short commute to work. For buyers who are looking for the perfect house in the perfect location, Clarence House in Richmond is difficult to beat. A beautifully renovated example of classic William and Mary architecture, it boasts world-class facilities and is just a short stroll from one of Europe’s largest urban parks. It is space that’s the real appeal here. The master bedroom suite alone is 1,100 sq ft, there are six reception rooms and a media room, as well as an impressive modern extension that includes a gym and pool. “Adding this sort of above-ground extension simply isn’t possible in central London properties where outside space is often very limited,” says Patrick GlynnJones of Savills Richmond. Overall, the house balances grand entertaining space with well thought-out family accommodation. So along with the impressive ground-floor drawing room, there is a family room with floor-to-ceiling windows that brings the garden into the heart of the home.
The Green Dividend Two park areas outside London that attract a price premium
T UN B R I D G E W E L L S “Easy access to the outdoors is a key part of the appeal of Tunbridge Wells. It has a London feel, yet right on your doorstep you’ve got Tunbridge Wells Common, which is a huge expanse of attractive parkland. The most desirable properties are located within 10 minutes’ walk of the station and 10 minutes from the common. These can go for anything from £1 million to £3 million, sometimes more.”
Robert Jacobs, Savills Tunbridge Wells
C L I F TO N , B R I STO L “It’s the combination of a chic urban setting and the local Downs – Clifton Downs and Durdham Downs – that make this area so appealing to buyers. There are upmarket boutiques, gastropubs and cafés, yet you’ve got three or four golf courses around you and two significant areas of parkland. As a result of this attractive mix, typical townhouses in the area range in price from £850,000 to £2 million.”
Richard Brooks, Savills Clifton
“When it comes to space, you definitely get more for your money in Richmond,” says Patrick. “You can get a much larger plot than in central London and it’s not as densely populated with houses, so you can be a short walk from all the facilities of Richmond town centre, yet still have an enormous garden.” Buyers at this level also expect to find the latest technology and facilities. Clarence House doesn’t disappoint. It comes fully equipped with a Lutron audio-visual system, electronic security and even a temperature-controlled wine cellar with space for more than 2,000 bottles. This is certainly an outstanding property. But grand houses aren’t the only reason that wealthy buyers are targeting London’s greener enclaves. “It’s about a different sort of city living,” explains Lindsay Cuthill. “It’s stylish and sophisticated, but it’s also very family oriented. For example, these park areas usually have family-friendly restaurants, excellent outdoor amenities and, most importantly, really good schools.” A quick look at the schools shows how popular the areas have become with overseas buyers. Alongside many well-regarded local independent schools, there is The German School in Petersham, The Marymount International School on Coombe Hill and The Swedish School in Barnes. “People want to have the complete package,” says Patrick. “Buyers are looking for a spacious family home, peaceful open spaces, excellent schools and an easy commute to work. The only place they can really get that in the capital is around the parks of south-west London.”
Lindsay Cuthill, Savills South-West London +44 (0)20 7731 9410 lcuthill@savills.com Patrick Glynn-Jones, Savills Richmond +44 (0)20 8614 9111 pglynn-jones@savills.com
- 56 savills.co.uk/barometer
| A WALK IN THE PARK |
MODERN ELEGANCE The restoration of Clarence House has created a stylish home that blends historic architecture with 21st century luxury. Elegant bathrooms and reception rooms are combined with eye-catching new elements. These include a wine vault, which can hold over 2,000 bottles, and a swimming pool in a modern extension overlooking the garden.
- 57savills.co.uk/barometer
| PROPERTY PORTFOLIO | PROPERTY路PORTFOLIO
Green and pleasant These stylish family homes in leafy suburbs provide a welcome escape from busy city living
2 Hamilton Lodge Windsor, Berkshire
A handsome, Grade II listed apartment
A Gothic masterpiece
Located near the town centre, this grand three bedroom apartment overlooks the Long Walk leading from the castle into Windsor Great Park. High ceilings, arched detailing and wood panels create a unique interior. EPC Rating = D.
Guide 拢995,000
Jo Chadwick, Savills Windsor +44 (0)1753 834 600, jchadwick@savills.com - 58 savills.co.uk/barometer
| A WALK IN THE PARK |
Slade House
Stunning waterfront location
Clapham Common South Side, SW4
An exceptionally elegant Grade II listed Georgian family house, on the banks of the River Thames, in a sought after west London location with unrivalled lateral living accommodation.
Guide £6.75 million / freehold
Key features
• Five bedrooms and five reception rooms • Guest house • Exceptional lateral space • 452 sq m (4,865 sq ft) • Library/study • Two integrated garages • Balconies and river roof terrace
Christopher Bramwell, Savills Chiswick +44 (0)20 8987 5555 cbramwell@savills.com
Prospect House
Strand on the Green, W4
A grand residence
A substantial, eight bedroom family house that offers uninterrupted views across Clapham Common. It has a large drawing room, while the fitted kitchen / breakfast room opens on to the 67 ft garden. The adjacent three bedroom coach house is also available by separate negotiation.
Guide £4.5 million / freehold
Key features
• Eight bedrooms (four en suite) • Five bathrooms • Library • Ample storage • Wine cellar • Off-street parking • EPC Rating = C
Christopher Lewis, Savills Clapham +44 (0)20 8673 4111 clewis@savills.com
- 59savills.co.uk/barometer
| A WALK IN THE PARK |
P r i v ate A F FA I R
Words: Chris Partridge
Private estates, such as Wentworth and St George’s Hill, offer a unique combination of privacy and security BACK IN THE 1930, the rich and fashionable buyers to knock down an existing house to create one abandoned fusty old country houses to live in smart that meets their exact requirements. These new homes new homes on estates in the Home Counties. Now are built to impress. “They will have a pair of ornamental today’s high net worth buyers are rediscovering these gates, a turning circle in front of the house with exclusive enclaves. As a result, a fountain, an impressive porch prices are soaring. Private estates, and a double-height entrance hall to such as Wentworth and St George’s give a sense of arrival,” says Simon St George’s Hill and Hill, offer space, privacy and Ashwell of Savills Weybridge. Wentworth are within security. Even overseas buyers have an hour of London discovered the benefits of private Going Underground and close to airports, estates and are responsible for A less radical approach,but one which including Farnborough a significant number of sales. This creates valuable space, is to construct for private jets. popularity has driven prices up by a large, lower-ground extension for a 20.1 per cent since 2007. pool, gym and staff accommodation, Paul Finnegan, Savills Director which are now must-have features. BEST OF BOTH WORLDS Owners choose this option because planning regulations Paul Finnegan, of Savills Country House Department, often prevent expansion above ground to no more than believes that location is a major part of the appeal. 30 per cent of the original footprint. “St George’s Hill and Wentworth are within an hour Add the luxury of space to the unique list of privacy, of London and close to airports, including Heathrow security and bespoke housing and it’s no wonder these and Farnborough for private jets,” he says. “Add in the estates remain so sought-after. fact that there are 41 independent schools within easy reach and it’s easy to understand the appeal of the area Paul Finnegan, Savills Country House Department +44 (0)20 7409 8877, pfinnegan@savills.com to affluent buyers.” Although the estates are home to some of the country’s Simon Ashwell, Savills Weybridge most desirable property, there is a growing trend for +44 (0)1932 838 004, sashwell@savills.com
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Chapter 7
CON T I N E N TA L SH I F T
MAKING THE GREAT ESCAPE When it comes to owning a dream home overseas, the South of France is the most popular choice, with properties here up to three times more expensive than other global destinations. But tourism is also having an impact on inland Europe as buyers target income-generating properties in Alpine resorts. Barometer online
For the latest insights into luxury overseas property, please visit savills.co.uk/barometer
| CONTINENTAL SHIFT |
MASTERCLASS
RIVIERA DREAMING We tour a unique property on the French Riviera and reveal why luxury and privacy are driving the market Words Chris Partridge
THE COTE D’AZUR was one of the very first playgrounds for the rich and the fashionable. From Queen Victoria and Tsar Alexander II to the Duke and Duchess of Cambridge, it has been a holiday destination for generations of royals who come to relax, socialise and soak up the sun. They’ve been joined by film stars and discreet financiers who pack up
their Louis Vuitton suitcases every summer and head to the world’s most exclusive stretch of coastline. So why are the global élite drawn here and what sort of property are they seeking? The answers are to be found at Villa Le Grand Bleu. Completed a few years ago, it stands as a fine example of modern architecture on Cap Ferrat.
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“It is an amazing house – there is nothing comparable in the area,” says Jean-Claude Caputo of Savills French Riviera. “It is perfect for people who come to the South of France for the summer and want to entertain during special events, such as the Monaco Grand Prix or the Yacht Show.” The house ticks a long and impressive list of must-haves for high net worth !
| CONTINENTAL SHIFT |
- 63 savills.co.uk/barometer
| CONTINENTAL SHIFT |
BRIEFING
Villa Le Grand Bleu St Jean Cap Ferrat This state-of-the-art villa has five bedroom suites, a two bedroom guest house, an infinity pool and landscaped gardens.
- 64 savills.co.uk/barometer
| CONTINENTAL SHIFT |
buyers. For a start, the location is extraordinary. The villa overlooks the fashionable town of St Jean Cap Ferrat from a commanding hillside position. “The view is certainly impressive,” says Jean-Claude.“But what is just as important is the privacy of the hillside setting. The villa is secluded, but still within easy walking distance of all the town’s bars, restaurants and shops.” After location, buyers are most concerned with space. This is something that Villa Le Grand Bleu has in abundance. The rooms have high ceilings and the interior is flooded with light. “I can’t think of another house with as much glass as this one,” says Jean-Claude. “Of course, for most wealthy owners, entertaining is an important part of their stay in the South of France. The villa has impressive reception rooms that are perfect for parties. It also has a guesthouse and five bedrooms in the main house.” A particularly dramatic feature is a glass lift that seems to enlarge the view of the sea as you move up the building. For outside entertaining, the terraced hillside gardens have been landscaped to provide peaceful and relaxing spaces. There is also a natural pool, a waterfall and an infinity pool that gives the illusion of floating in the Mediterranean. When it comes to technology, the villa shows how the requirements of affluent buyers have moved on. A decade ago, a luxury property like this would have boasted visible gadgets and gizmos. Now, wireless technology is at the heart of the home. Owners want seamless connection for every device – smartphone, tablet and laptop. Naturally, Villa Le Grand Bleu has wireless internet available throughout the property. Even so, there is one status gadget that hasn’t changed, except to get bigger. The media room has a suitably large TV screen with a sound system that delivers a movie-house experience.
Coasting Along
A short distance from Cap Ferrat, along the Var coast, are charming and less expensive holiday destinations The western end of the Var coast is where a more sedate France meets the Mediterranean. Unspoilt hills plunge directly into the sea and villages retain their French feel, with shops selling local produce and cafés serving locally caught fish. PRISTINE SCENERY “Where the hills hit the sea you get little bays with beaches,” says Bill Evans of Savills Network, Sheeran Serre. “It is an area that is beautiful and very French.” LIMITED SUPPLY The landscape is now protected, limiting the building of new homes. This means property prices are stable, but bargains are to be had. “A three bedroom villa with a sea view will cost about €800,000, while a waterside property can fetch €5 million,” says Bill. “That is half the price of St Tropez and a quarter of the price of Cap Ferrat.” FUTURE DEMAND The extension of France’s famous high-speed rail network to Nice will have a big impact on property prices right along the Var coast. It will eventually cut journey times from Paris to Nice to just under four hours, making owning a home in the South of France even more popular than it is today.
An added attraction for many buyers will be the fact that the villa is a relatively new property already configured for modern living. In an area that is so well developed, with a landscape that is also highly protected, new homes are very rare. “Finding outstanding modern architecture in this location is almost impossible,” says Jean-Claude. “It marks out the villa from an already very select list of properties.” The very top end of the Riviera property market remains strong. The area is one of the honeypot locations for the world’s super-rich, attracted by easy transport, a vibrant cultural life, including the Cannes Film Festival, and the casinos in Monaco. These attractions elevate the Riviera to a select group of locations where property prices are dominated, not by the local economy, but by demand from investors and second-homeowners round the world. It’s an élite club that includes prime central London, Manhattan and the Hamptons. “Riviera prices are among the highest in the world,” says Jean-Claude. “But they continue to rise, protected by the restricted supply and continuing high demand. As a result, rents are also very high, so if you buy a villa or apartment as an investment, you can rent it out for four months a year and gain enough to cover your costs and still enjoy it for holidays.” Many international investors are buying on the Riviera simply for security. France is a mature economy and the Riviera is a safe haven for funds. But people do not buy second homes at Cap Ferrat for dreary investment purposes. They buy them to enjoy the culture, lifestyle and glorious light. Life on the Riviera is for living, and there’s nowhere better to do it than Villa Le Grand Bleu.
Jean-Claude Caputo Savills French Riviera +33 (0)607 933 819 jccaputo@savills.com - 65 savills.co.uk/barometer
| CONTINENTAL SHIFT |
PE A K
performance Chalet owners are taking a fresh look at the Alps and finding ways to double their rental income Words Claire Coleman
| CONTINENTAL SHIFT |
IT’S ONE OF the world’s most beautiful winter views: the brilliant white snow of the Alps under a bright blue sky. But now property owners are taking a new look at the region and discovering it’s not all about ski lifts and schnapps. “For many British buyers, a chalet in the Alps has been about one thing – skiing,” says Charles Weston-Baker of Savills International. “They use the chalet as much as they can during the season and rent it out for the rest of the winter. But this overlooks a valuable rental sector – summer visitors.”
Source: Savills Spotlight on Alpine Property. Photographs: 4Corners, Advertising Archives, Shutterstock
SEASONAL CHANGE The Alps have become a popular summer destination. Festivals draw in cultural tourists, alongside visitors looking for activity holidays based around walking and mountain biking. “Dual season rental opportunities represent increased potential income and the possibility of a lifestyle purchase being able to pay for itself,” says Charles. But overseas purchasers need to act quickly if they want to enjoy the prime mountain areas of Switzerland.
“The Swiss Government has recently introduced the Weber initiative, which places a 20 per cent limit on second homes,” explains Charles. “If this quota is already exceeded, as is the case with many Swiss mountain resorts, existing second homes can still be sold, but there will be restrictions on new developments.” The good news is that developments already under way are not affected. Some, such as Mer de Glace in Nendaz, are suprisingly affordable, with prices starting at CHF695,000. Of course, Switzerland isn’t the only option. If you are one of the potential buyers hesitant about committing to France because of uncertainty over the new president’s planned tax rises, experts suggest taking a look at Austria. “We’re seeing high demand in Austria,” says Jeremy Rollason of Savills Alpine Homes. “It’s certainly more affordable. Here you can pick up a two to three bedroom property for around €300,000 with a guaranteed rental return. This is really appealing, especially for people on lower budgets who want the peace of mind of knowing there’s a rental
by the numbers 63% of overseas homes are let for up to 16 weeks a year
One-third
of owners surveyed by Savills said rental income entirely covered their costs
47% of owners
anticipate continuing to let their property rather than selling it
Two-thirds
of holiday homes generate up to £10,000 in gross annual income
- 67 savills.co.uk/barometer
management system in operation that can help to pay off the mortgage.” Whichever country you choose to buy in, the old adage of location, location, location holds true, with resorts within two hours of an airport being the most popular. Even so, the most in-demand properties aren’t necessarily located right in the centre of town. THE WIDER VIEW “While proximity to ski lifts, walking and bike trails is desirable for winter and summer visitors, it’s not always essential,” says Jeremy. “In Verbier, some of the most expensive properties are 10 to 15 minutes’ drive from the centre. What these chalets offer in return are spectacular mountian views and complete privacy.” Which only goes to show that whatever the time of year, and whatever the location of the chalet, it’s the scenery that people are really paying for.
Charles Weston-Baker, Savills International +44 (0)20 7016 3741, cwbaker@savills.com Jeremy Rollason, Savills Alpine Homes +44 (0)20 7016 3753,jrollason@savills.com
| PROPERTY PORTFOLIO | PROPERTY·PORTFOLIO
Simply breathtaking These exquisite properties are located in some of the world’s most idyllic locations
Macquarie Street Sydney, New South Wales
An impressive three bedroom apartment overlooking Sydney Harbour
Unrivalled location
This luxuriously appointed apartment features amazing views of Sydney’s iconic bridge, Opera House and harbour. It is situated at the sought-after northern end of a prestigious freehold complex.
Guide AUS $6 million
Shayne Harris, Savills Sydney +61 (0)2 8215 8879, sharris@savills.com - 68savills.co.uk/barometer
| CONTINENTAL SHIFT |
Le Manoir de Beaulieu
Western Cape, South Africa
Winelands estate
This spacious Provençal-style home has been built with great attention to detail and high quality finishes throughout. It is located within a secure estate and has dramatic views of the mountains and the famous Taal monument. The main house offers three en suite bedrooms and for visitors there is a spacious, two bedroom annexe with a separate entrance.
Guide R10.6 million
Key features
Ortaglia
Pratolino, Tuscany
Villa with a vineyard
This beautiful hillside estate is 20 minutes from the centre of Florence. It consists of an 18th century, six bedroom villa, with ornate marble floors and fireplaces, which is surrounded by a large formal garden. There is also a seven bedroom guest lodge, as well as a vineyard that has its very own three bedroom renovated stone farmhouse.
Guide €12.9 million
Key features
ă Laguna Lang Cô Central Vietnam
Exclusive development
Laguna Lăng Cô, the first fully integrated world-class hospitality development in Vietnam, is the region’s finest holiday destination and includes Banyan Tree and Angsana hotels and resorts, awardwinning spas and a championship golf course, alongside Banyan Tree and Angsana Residences offering panoramic sea views in an unrivalled location.
From $295,000 / 280 hectares
Key features
• Courtyard entrance with fountain • Entrance hall with glass staircase • Master bedroom suite with two en suite dressing rooms • Four bathrooms • Infinity edged length pool • Five garages, four off street
• Two swimming pools • Wine cellar • 34 hectares of land • 720-tree olive orchard • Unrenovated farmhouse with seven hectares is for sale by separate negotiation
• Vietnam’s first fully integrated resort • Banyan Tree Hotel and Residences • Angsana Hotel and Residences • Championship Golf Course by Nick Faldo • Close to Danang International Airport
Lynette Schoeman +27 (0)21 871 1480 lynette.schoeman@pamgolding.co.za
Jelena Cvjetkovic, Savills International +44 (0)20 7016 3740 jcvjetkovic@savills.com
Guy Major, Savills Vietnam +84 (0)9 1391 8304 gmajor@savills.com
- 69 savills.co.uk/barometer
| CONTINENTAL SHIFT |
G loba l S TA R S
Rupert Seabag-Montefiore of Savills Global Residential highlights key overseas locations for smart investors
New York Bounce
Right now, New York looks like a good investment. Prices have fallen by 17 per cent since 2008 and the market is now recovering fast. A few years ago, 3-4 per cent of buyers were from overseas, but today that figure is nearer 20 per cent. Investors are targeting new condominium blocks rather than traditional co-op buildings where buyers require the approval of existing owners.
The Monaco Gap
In the luxury holiday homes market there are far more shoppers than buyers. Buyers say vendors are asking unrealistically high prices, while vendors say buyers are offering unrealistically low prices. This pricing difference has been called the Monaco Gap. Even so, opportunities do exist where the seller acknowledges prices have fallen since the peak.
Spanish Gold?
Property values have fallen by 30-70 per cent in Spain. This means prices are starting to look interesting for bold investors, but they should only look in areas that haven’t been over-developed. To quote the words of Warren Buffett, “When people are greedy, be fearful. When people are fearful, be greedy.”
Paris Pauses
Since 2008 the prime market has gone up by 55 per cent, more than matching London, albeit from a low base. Paris has a romantic appeal like no other city, but the market is now stuttering as a result of uncertainty in the Eurozone.
Rupert Sebag-Montefiore Savills Global Residential +44 (0)20 7409 8845 rmontefiore@savills.com
- 70 savills.co.uk/barometer
Keys to Florida
Prices have been slashed and, in some locations, you have been able to buy at not much more than the cost of building – so the land comes free. Some Brits now see the Florida market as an alternative to Spain, thanks to a more stable US economy and a lower currency risk.
Words: Christopher Middleton
THE GLOBAL DIRECTION of investment is now very much from cash-rich new world countries in the east to established old world cities in the west. The standout favoured locations are London, followed by France and the US. But there are other locations that are well placed to deliver capital growth, from business centres to leisure destinations.
The
DIRECTORY SAVILLS INTERNATIONAL NETWORK ENSURES THAT WE ARE AT THE HEART OF THE GLOBAL PROPERTY MARKET
Photograph: Andrew Montgomery
“With over 20,000 people and 500 offices and associates worldwide, including our new UK headquarters in central London opening in June, Savills is perfectly located to help you make the most of the opportunities in the property market. For details of our services and the sectors we operate in, please see the directory overleaf, or visit our website at Savills.co.uk.” Mark Ridley, Chief Executive of Savills UK
- 71 savills.co.uk/barometer
| THE DIRECTORY |
Savills services Residential services The leading name in the UK residential market, Savills sets the standard in the sale, purchase and letting of property. Justin Marking, Head of Residential Agency (UK) Lansdowne House, Berkeley Square, London W1J 6ER +44 (0)20 7499 8644
London Jonathan Hewlett +44 (0)20 7730 0822 Country Houses and Estates Crispin Holborow +44 (0)20 7016 3780 Lettings and Property Management Jane Ingram +44 (0)20 7730 0822
International Residential & Resorts Charles Weston-Baker +44 (0)20 7016 3740 Private Office David Forbes +44 (0)20 7730 0822 Residential Development Sales George Cardale +44 (0)1179 100 351
Other services Through our advice, our property management capabilities and the transactional services we provide, we help our clients to fulfil their real estate needs – whatever and wherever they are. Commercial Property Mark Ridley +44 (0)20 7499 8644 Auctions Christopher Coleman-Smith +44 (0)20 7730 0822 Development Richard Rees +44 (0)1179 100 323
Housing Investment & Consultancy Robert Grundy +44 (0)20 7499 8644
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We sell every kind of property, from elegant town houses and luxury holiday homes to magnificent country estates. - 72 savills.co.uk/barometer
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Park (opening in
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March 2013)
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+44 (0)1252 729 000
+44 (0)1865 339 700
■ Birmingham
■ Glasgow
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+44 (0)121 633 3733
+44 (0)141 248 7342
+44 (0)1738 445 588
■ Bishop’s Stortford
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+44 (0)1279 756 800
+44 (0)1483 796 800
+44 (0)1733 344 414
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+44 (0)1208 264 400
+44 (0)1582 465 000
+44 (0)1737 230 200
■ Bournemouth
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+44 (0)1202 255 552
+44 (0)1444 441 166
+44 (0)1923 725 500
■ Brechin
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■ Salisbury
+44 (0)1356 628 600
+44 (0)1491 843 000
+44 (0)1722 426 800
■ Bristol
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+44 (0)117 910 0300
+44 (0)1473 234 800
+44 (0)1732 789 700
■ Bristol – Clifton
■ Leeds
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+44 (0)113 244 0100
+44 (0)1727 810 192
■ Cambridge
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+44 (0)151 331 5500
+44 (0)1344 626 162
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+44 (0)1522 508 900
+44 (0)1952 239 500
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+44 (0)1689 869 600
+44 (0)1872 243 200
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+44 (0)20 8498 6600
+44 (0)1892 507 000
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+44 (0)1932 838 000
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+44 (0)1962 795 035
+44 (0)1625 417 450
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+44 (0)1932 586 200
+44 (0)1635 277 700
+44 (0)1962 841 842
■ Cranbrook
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+44 (0)1580 720 161
+44 (0)1923 824 225
+44 (0)1753 834 600
■ Edinburgh
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+44 (0)131 247 3700
+44 (0)1603 229 229
+44 (0)1904 617 800
- 73 savills.co.uk/barometer
SAVILLS
GLOBAL NETWORK We have offices and associates in over 45 countries across the Americas, Europe, Asia Pacific, Africa and the Middle East. This international network puts us in an unrivalled position to match clients to properties in our extensive overseas portfolio and to market UK residential property globally.
| MARKET INSIGHT |
Equ
ns
ity
Re
lea
se
In
The
ve st
me
PROPERTY
nt
Op
por
Rise of the Uber Towns
The Money Movers
The Landlord Dividend
IN THE PAST four years average price growth in the prime London markets has been staggering. Since the bottom of the market in 2008, prices have risen by 46 per cent. In 2013 we expect that rate of growth to slow as the market absorbs a greater tax burden. However, London’s popularity as a place to live, work and store wealth will continue to attract overseas buyers, who are widening their ownership into areas beyond the traditional enclaves of Mayfair, Belgravia and Knightsbridge. The new developments on the fringes of central London and established family markets, such as Fulham, are already focal points.
THE STRETCHING of the price elastic between London and the rest of the country is likely to provide opportunities for buyers looking to move out of the capital in 2013. Prime property prices in London are some 24 per cent above their peak prior to the credit crunch, but prime regional markets are still 10 per cent below. While the ripple effect out of London is likely to be gradual, we would expect markets in commutable towns that have good schools and quality housing stock – such as St Albans, Beaconsfield, Guildford and Sevenoaks – to benefit from an increased outflow of wealth from London this year.
CURRENTLY, 22 per cent of London sellers in the £1 million-plus market are doing so to release equity in their homes. Over the next five years we expect this to increase as older generations free up their wealth in order to assist younger generations to get on to, or move up, the housing ladder. Over that period we expect the amount of equity unlocked to rise from £7 billion to £14 billion. Our analysis of demographic and house price data suggests locations such as the Surrey Hills, Chichester, the Cotswolds, the New Forest and Stratford-upon-Avon will benefit from older movers using equity from London property.
THE 2011 CENSUS has confirmed the extent of the growth in private renting over the past 10 years, predominantly as home ownership has become far less accessible to younger generations. Over that period, the number of households in private rented accommodation in England and Wales has risen from 2.6 million to 4.2 million. In the wealthiest locations in the south-east, our analysis suggests asking rents for three bedroom properties have risen by 12.8 per cent over the past two years. This year, we expect that the mainstream and prime rental markets will continue to grow, providing opportunities for investors.
y
A Pause for Breath
- 74 savills.co.uk/barometer
ies
Lucian Cook of Savills Research reveals four trends that will shape the property market in 2013
tunit
forecast
t on t re
the L ond on Ma rk et
Co
u mm
To w ter
| FOREIGN AFFAIRS |
Property Misdescriptions Act: Savills recommends that applicants discuss their interest in a property with the negotiator who can answer more speciďŹ c questions and advise if it is under oer. This is especially important if you are contemplating travelling some distance to view the property. All descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are given without responsibility, and any intending purchasers or tenants should not rely on them as statements or representations of fact, but must satisfy themselves by inspection or otherwise to the correctness of each of them. Investment advice: The information and opinions contained in this magazine do not constitute professional advice and should not be relied upon. SpeciďŹ c advice relating to your individual circumstances should be obtained. Please recycle this magazine after use.
- 12 -
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