Rectories, manors, mansions and estates are not merely our favourite British
homes. These sought-after country properties are proving increasingly
slowdown-proof, as prices hold up in defiance of the gloomy mood elsewhere
in the property market.
New research by Savills reveals that prices for prime country homes fell a
mere 0.5 per cent in the first quarter of this year, at a time when prime
Central London homes dropped 1.5 per cent and the mainstream market fell by
1.1 per cent. The sharpest falls were in the North and Midlands, where
prices are down 2.1per cent, in contrast to a rise of 0.3per cent in
Scotland.
But hardest hit has been the type of property purchased by those who need
“bonus money” to buy. Lucian Cook, director of research at Savills,
explains: “The fall of 1.5 per cent in prime Central London since the start
of the year has been reflected in a similar fall in £1million to £2million
homes in the South East. Middle-ranking executives, who may be buying with
bonus cash, have been hit hard. Last year they made up 16 per cent of the
market; now they are only 8 per cent.”
The £4 million-plus market, which takes in the finest country homes, remains
undaunted. Mr Cook says: “It's increasingly difficult to find a top-quality
property, so if they come up, a weaker market is unlikely to affect the
bidding. The people buying these homes are more likely to purchase with
accumulated wealth and be less worried about affordability.”
Experts say that a lag of three to six months exists between the London market
and that in regional areas. This may imply that more country property will
soon come to market, which may depress values and cause prices to slide in
coming months.
Yet, even in London, the very top end of the market is continuing to thrive,
with an apartment in a former office block in St James's Square selling just
weeks ago for £115million. And buying agents who specialise in sourcing
country homes for clients are discerning little sign of a slowdown. Jonathan
Harington, of the agency Haringtons UK, says: “One house in Gloucestershire
- a very nice country house in a nice setting of 80 acres - was on the
market for £5 million, but sold for £8 million only a few weeks ago.”
Phil Spencer, the chief executive of Garrington Home Finders, says it is
possible to define the requirements of a recession-proof country home. He
says: “It must have complete peace, away from road or air noise, yet be
accessible to a market town or motorway. It must be private, and so ideally
come with land, and it must have protected views and some water, such as a
lake or stream.”
And, he adds: “Such a home must be of historical or architectural interest,
such as a classic Queen Anne home or a Georgian ‘doll's house', yet not be
too listed. A Grade I listing can prevent you from changing or improving
what is already there.”
Market Comment: Top properties are best-placed to survive the squeeze
"Good properties - the best of their type, not just “expensive” - are
still selling well. The London market differs from the country in that the
supply of homes is greater, so you have more scope to negotiate, and supply
in London has improved in the past two to three months. But I live in a
decent house in a decent part of southwest London and I expect it to be
worth more at the end of this year than it is now. Not much more, but more.
There are plenty of people who are not affected by the credit crunch."
Phil Spencer, chief executive, Garrington Home Finders
"In the early 1990s there was a point at which buyers would not commit
because they did not want to be the person who paid top dollar in the 59th
minute of the property game. That sentiment has not yet arrived in this
slowdown - people know that if you want that perfect rectory in a pretty
village, you might wait ten years to find it again. There are plenty of
properties that are sticking, but they are second or first division homes,
not premier league. For an unblemished house, the market is flying."
Jonathan Harington, director, Haringtons
"In Bath and Bristol there are people who want to buy, but the property
is not there. The second homes market is slightly on hold, but it has not
come to a halt. More experienced buyers are getting on with it."
Jonathan Haward, managing director, The County Homesearch Company
"There is a lot of competition in the M4 corridor through Berkshire, with
sales above guide prices. The same applies in Gloucestershire and Dorset.
People were going into Wales and Hereford, but now want to be sure that the
area will hold value."
Philip Selway, managing partner, The Buying Solution
"Things are holding up in Belgravia and around St James, because a lot of
old money is coming in. But prime Central London is levelling off - it is
very much a market in which you can negotiate hard and strike a good deal."
Russell Hunt, managing director, Property Hunt
"In Buckinghamshire it is £1million-plus properties that are sticking.
Across the market offers of about 5 per cent below asking prices are being
accepted now, which three or four months ago was not happening. Even lower
offers will be accepted soon."
Sharon Hewitt, managing director, Chiltern Relocation
"Sellers need to be realistic: if they find a cash buyer, they should
bite their hand off. The credit crunch means that even high-end buyers who
are remortgaging are having difficulty getting home loan deals."
Nicholas Ayre, director, Home Fusion
"Buyers are sensing opportunities, negotiating hard and are prepared to
walk away if they don't feel they are getting the right property at the
right price. We have also seen clients who lost out in last year's frenetic
market start to return and find they have more choice and time to make
decisions. Most interest is from cash buyers looking in established areas."
Dan Crofton, partner, Crofton & Associates
Many people would like to live in East Kent. I have just put my house on the market (I`m caring for my elderly Mum) and if it sells, especially if it`s close to the valuation; I have identified a couple of places where I would like to have a bolt-hole and I`m definately not even saying where!
Mike, Shepperton, UK
Top End makes no difference,its the Bottem End that counts.They could rise by 100% at the top and fall by 50% at the bottem.
stephen hulton, eure, france
Sorry, but is that an advert by Liz Minter by any chance? And you choose to publish that while censoring real comments?
Alex Ritchie, Salisbury, UK
The advent of the fast rail link in December 2009 means that East Kent will be one of the next property "hot spots". Train times from Ashford to London in 37 minutes and Canterbury to London in 61 minutes mean that living in the "Garden of England" and enjoying life in the country whilst working in London becomes a real option. In East Kent there is the thriving city of Canterbury, coastal areas that are being regenerated, access to France via the Channel Tunnel in 35 minutes and schools which regularly top the league tables yet house prices are currently very competitive.
Liz Minter, Urban Exit Ltd
Liz Minter, Canterbury,