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B A ROM ET ER| Property advice that gives you an advantage |

World City Continental Shift Silver LiningAWalk in the Park

savillsideas from

Country Retreats Investment Potential Million Pound Club

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Barometer OnlineFor the latest market updates, property

selections and video exclusives, please visit:savills.co.uk/barometer

welcome


The property market is constantly changing. New locations becomepopular and new buyers, especially from overseas, drive sales and prices,particularly in London. Expert advice is essential to make the most of theseexciting opportunities. In this issue of Barometer, and our new onlineversion, you will find our latest thinking on key aspects of the market,from prime London and country houses to luxury properties around theworld. Whether you are buying a family home or looking for a smart cityinvestment, we hope you find our insights informative and inspiring.

Justin MarkingHead of Savills UK Residential

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| BAROMETER |

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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Chapter 1

World CityHow to sell your prime Londonhome to a wealthy overseas buyer.

page 5

Chapter 2

Country RetreatsAn insider’s guide to buyingwell in the countryside.

page 15

Chapter 3

Million Pound ClubThe big impact commuters are

having on £1million-plus homes.page 27

Chapter 4

Silver LiningDiscover why the “grey pound” is

dominating the second-homes market.page 35

Chapter 5

Investment PotentialWe reveal the latest smart thinking

on property investment.page 45

Chapter 6

A Walk in the ParkGreen spaces are creating

hotspots in cities around the UK.page 53

Chapter 7

Continental ShiftA look inside some of the world’s

most exclusive homes.page 61

DirectoryYour guide to Savills propertyservices, plus contact details

for Savills offices.page 71

In thisIssue

04 Contents V4 Savills Iss03.indd 404 Contents V4 Savills Iss03.indd 4 22/01/2013 00:3322/01/2013 00:33

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Barometer onlineFor the latest insights into London property,

please visit savills.co.uk/barometer

WORLD CIT YChapte r 1

A GLOBAL SUPERSTARWhen it comes to residential property, London is trulya global city. Overseas buyers now purchase 59 per centof prime central homes and 70 per cent of all prime

new-build properties. As a result of this influx of wealth,sales of £5 million-plus homes are on the rise.

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MA ST E R C L A S S

This grand Knightsbridge residence reflects theglobal appeal of London’s most luxurious homes

BR IGHTand

BEAUTIFUL

Words Damon Syson

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B R I E F I N G

In the grand styleKnightsbridge

A magnificent Grade II listedhouse, located in the heart ofLondon, offering 14,777 sq ft

of accommodation.

| WORLD CITY |


WRITING IN the Evening Standard,eminent former diplomat Sir ChristopherMeyer recently posed the followingquestion:“Is it too arrogant to thinkLondonhas become the capital of the world?”Perhaps the best people to answer that

question are overseas property buyers.Drawn by London’s stability, security andcultural life, they have put the city at the topof their investment list. As a result, whilethe 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 safe-haven investment and enjoy an attractivelifestyle,” says Jonathan Hewlett of SavillsLondon Residential. “In uncertain timesthat is a very compelling combination.”This spectacular, six-storey home

epitomises everything that wealthyoverseas buyers are looking for in a primeLondon property. As you’d expect, locationis a priority.“The house is in the heart of the golden

triangle that flanks the south-east cornerof Hyde Park,” says Jonathan. “It’s rarebecause it is one of the few properties thathasn’t been converted into apartments.”Large-scale houses in the most desirable

London postcodes are actually few and farbetween, which is one of the reasons thatthe ultra-prime market is so strong.So what facilities does a house need to

offer if it’s going to win over the world’smost affluent – and demanding – buyers?Location on its own isn’t enough to sealthe 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 andfeel of the house,” says Jonathan. “It isflooded with natural light and the floorplanhas been carefully thought through. Forexample, there is a very good reception hallon the ground floor that has been designedso the owner can host private businessmeetings without visitors coming into therest of the house.”


| WORLD CITY |



| WORLD CITY |


oozes quality,” says Jonathan. “It’s all downto the minutiae. People can always make abuilding look pretty,but true quality is whenyou look closely and there are no errors, noshortcuts. The quality of the work in thishouse, even within the premium market, isexceptional. The best craftsmen have beenemployed to get the finish absolutely right.”At this level of the market there are few

“turn-key” properties – ones that are readyto walk into. Most need some work, whichcan put off potential buyers.

“One of the biggestchanges is that buyersnow often want to havea turn-key property,”says Barbara Allen ofSavills Knightsbridge.“They have neither thetime nor the inclinationto do a property up.They’re cash rich/timepoor, and when theybuy a house they wantto start their Londonlife immediately.”Of course, it is life in

a global city that is thereal icing on the cake.“There is definitely

muchmore toLondon’sappeal than simplybeing a safe haven,”says Barbara. “As a cityin which to live, workand play, London isalmost unrivalled. Theinfrastructure is good

and the traffic – though we complain aboutit – is nothing compared to the gridlock ofMoscow or Dubai. What’s more, the cityhas outstanding restaurants, retail andculture. For people used to the best, it feelslike the place you want to be right now.”

Unusually the house has two lifts, one forfamily and one for staff. The entertainingspace on the first floor is exceptional, andthe master bedroom is suitably grand. Ithas the added convenience of doors leadingfrom the dressing room to the hallway,meaning staff can deliver clothes withoutwaking anyone sleeping in the bedroom.In terms of facilities, extras like staff

accommodation, gyms, cinemas, saunas,massage rooms and wine stores (all of whichfeature in this property) have becomestandard at the top endof the market. Thehouse also has state ofthe art security, soundand heating – allcontrolled via iPads.“Above all, the buyer

for a property like thisis really looking forsomething that suitstheir lifestyle,” saysJonathan.“For example,they will expect acatering kitchen forentertaining on a grandscale, but they alsowant a more relaxedfamily kitchen. Thishouse has an entirefamily floor with afamily room, a kitchen/breakfast room andnanny’s quarters – soyou’ve almost got aseparate flat within thehouse, which meanschildren can enjoy more informal living.”The final item on the dream checklist is

perhaps the most important – the wowfactor. It’s meticulous attention to detailthat elevates a home to a residence.That’scertainly the case here. From the brand newstaircase with its beautiful nickel balustradeto the ornate plaster ceilings in the receptionrooms, this is living on a grand scale.“International high net worth individuals

will pay a premium for a property that really

JonathanHewlett, Savills LondonResidential+44 (0)20 7824 9018, [email protected] Allen, Savills Knightsbridge+44 (0)20 7590 5059, [email protected]

“Choose natural colours to createa look that will appeal to the broadestcross-section of buyers.Try to avoidmaking dramatic design statements.With furniture and art works, it paysto err on the side of caution. You maylove something, but that doesn’t meanpotential buyers will.When it comes tolayout, an impressive reception space isessential as entertaining is going to behigh on the buyer’s list of priorities.Remember, you’re not just sellinga property, you’re selling a lifestyle.”Simon Buhl Davis, Savills Interior Services

Global AppealHow can London homeownersattract an overseas buyer?


PRIME: St James’s is all about oldmasters on display downstairs indealers’ showrooms, old money

living in grand apartments upstairs.REASONS TO BUY: A blink awayfrom renowned restaurants; withinwalking distance of theatreland.

Buyers who can’t find their ideal home in a prime locationare moving to stylish but more affordable neighbourhoods

Words Mark Palmer Illustration Deanna Halsall

NeighbourhoodWATCH

Charles Lloyd, Savills Mayfair+44 (0)20 7578 5111, [email protected] Lindsay, Savills St John’s Wood+44 (0)20 3043 3600, [email protected]

LONDON’S PRIME property areas areon the move. There are currently 10 ofthese exclusive locations in the capital,ranging from Belgravia to The Boltons.But a ripple effect is seeing wealth flowingfrom prestigious addresses into less high-profile neighbourhoods.These share manyof the prime areas’ qualities, from housingstock to amenities, but are more affordable.“While high net worth buyers tend to

concentrate on well-known locations,other purchasers are being savvy andbuying into areas where there is still plentyof market growth,” says Charles Lloyd ofSavills Mayfair.In central London there are four

locations smart purchasers are targeting –Fitzrovia,Marylebone, St John’sWood andWestminster – where prices can be up to25 per cent below their prime equivalents.In many cases, these buyers are finding it

hard to compete with the global wealth

“Buyers are becoming much betterinformed,” says Stephen Lindsay of SavillsSt John’s Wood. “They look at the LandRegistry and do their homework.”The ripple effect of buyers is now

also evident in south-west London.Fulham is seeing sustained interest frompurchasers who are unable to secure thetype and size of property that they wantin Chelsea.“There might be 10 prime areas right

now,” says Stephen. “But in five years’time that number could grow to 15 ormore as property wealth spreads acrossthe capital.”So this could be the perfect time to buy

into a future prime location.

flowing into the capital.Overseas money inprime central London accounts for 60 percent of buyers in the £1 million-plus primesector and more than 70 per cent of buyersin 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 pricedout of the more expensive prime propertiesof Regent’s Park.

NEAR PRIME: If you’re lookingfor the spiritual home to the newmedia and art Establishment,then you’ll find it in Fitzrovia.REASONS TO BUY:One ofLondon’s most cultured, centraland connected neighbourhoods.

PRIME:Mayfair is characterisedby elegant townhouses andimposing mansion blocks.

REASONS TO BUY:The bestshopping and restaurants in town.The Connaught, Claridge’s andThe Dorchester are all local.

NEAR PRIME:Marylebone hasa village feel with boutique shopsand traditional butchers and bakers.REASONS TO BUY: Very closeto Regent’s Park and home toDaunt Books, the capital’smost charming bookshop.

Top 10Prime LocationsBelgraviaChelsea

Holland ParkKensington

Knightsbridge

MayfairNotting HillRegent’s ParkSt James’sThe Boltons


| WORLD CITY |

ST JAMES’S FITZROVIA MAYFAIR MARYLEBONE

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PRIME: Peerless Nash housesoverlook Regent’s Park, one of thecity’s most beautiful green spaces.REASONS TO BUY: Excellent

schools. Easy access to theHeathrow Express, which getsyou to the airport in 15 minutes.

NEAR PRIME: St John’s Woodis a leafy neighbourhood on thenorth-west side of Regent’s Park.REASONS TO BUY: Charminglocal high street with independentshops. Substantial family homes,

most with large gardens.

PRIME:This is a quintessentiallyBritish neighbourhood, but familyhouses attract overseas buyers.REASONS TO BUY: Easy strollto the green spaces of KensingtonPalace Gardens and Holland Park.

Excellent transport links.

NEAR PRIME:An exclusive enclavethat is perfectly positioned forWhitehall and theWest End.

REASONS TO BUY:This is a veryquiet neighbourhood, despite itscentral location. Superb choir at

St Margaret’s Church.


| WORLD CITY |

REGENT’S PARK ST JOHN’S WOOD KENSINGTON WESTMINSTER

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Stephen Lindsay, Savills St John’s Wood+44 (0)20 3043 3600, [email protected]

One Cornwall TerraceRegent’s Park

A prestigious, 19th century residence

Steeped in architectural historyThis 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

Simply the bestThese central London properties,whether newly built or luxuriously

refurbished, are in a class of their own

P R O P E R T Y · P O R T F O L I O

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One Hyde ParkKnightsbridge

Upper Wimpole StMarylebone Village

Lap of luxuryIn terms of design, service and location –close to Harrods and overlooking HydePark – there’s nothing quite like thisluxurious apartment.Access to theMandarin Oriental’s superb facilities,

including 24-hour room service, in-roomspa treatments and ordering in from

Heston Blumenthal’s Dinner restaurant.Price on application, leasehold

Key features• 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 privatecinema room and a 21m ozone pool

• EPC Rating = C

Ned Baring, Savills London+44 (0)20 7409 [email protected]

Family affairThis light and spacious six-bedroomGrade II listed family house is a short

walk from Marylebone High Street. It isbeautifully restored with bespoke interiorsand finished to the highest standard.Thefantastic entertainment and leisure spaceincludes three reception rooms, a gym andthe latest in-home theatre technology.Price on application, freehold

Key features• Within a few minutes’walk of Regent’s Park and

Oxford Street• Six bedrooms

• Separate staff/guest apartment• Private courtyard garden• Bespoke kitchen withmarble countertop

Charles Lloyd, Savills Mayfair+44 (0)20 7578 [email protected]

South Eaton PlaceBelgravia

Modern classicAn elegantly refurbished Grade II listedtownhouse located in a prime Belgraviastreet, with garaging and a large terrace.

The quality of the finish, designand specification is outstanding and

includes Lutron lighting, air-conditioning,underfloor heating and bespoke

silk carpets throughout.Price on application, freehold

Key features• First-floor double drawing roomleading on to a club room and

landscaped terrace• Bespoke dining room with antique

mirror-panelled walls• Master suite with bathroom andextensive bespoke dressing room

•Three further bedrooms, all en suite

Barbara Allen, Savills Knightsbridge+44 (0)20 7581 [email protected]

| WORLD CITY |

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an eye on is the London Overgroundnetwork. This travels through 20 of thecity’s 33 boroughs. The final section,the East London extension, has recentlybeen opened. It creates easier links betweenSouth London and the city’s financialcentres and is set to have a positive impacton local property values.

Look for RegenerationAdventurous investors should look at areasseeing substantial inward investment, suchasNineElms orElephant andCastle.In thelatter, a respected regeneration company isbuilding 2,800 homes and a new shoppingcentre is planned to help the area shed itsscruffy image.The location is key as it suitsbuyers wanting fast Underground links tothe West End and the City, and rail linksto Eurostar at St Pancras.SotoidentifythenextElephantandCastle

or Nine Elms, look at the map and counthow many stops it is to the centre of town.It sounds simple, but it’s an effective way tospot an investment opportunity.

Follow New Transport LinksInfrastructure projects such as Crossrailcreate investment opportunities. This railservice, due to open in 2018, will link westand east London. Journey times betweenthe West End and Canary Wharf will bejust 13 minutes. As a result, there are threeareas in particular that may see significantprice rises in property over the next fiveyears: King’s Cross, Soho and Farringdon.Another transport project worth keeping

A PERIOD HOME in London is seenby many private buyers as a must-havetrophy asset. But when it comes to new-build properties, purchasers are notjust looking for a desirable place to live,they also want an investment that willdeliver optimum returns. So here are threegolden rules to help identify the bestopportunities in the capital.

Choose Established AreasProperties located in central areas withgood transport links, such as Kensington,Knightsbridge, St James’s and Mayfair,have all benefited from strong capitalappreciation in recent years, and theycontinue to attract international buyers.Prime central London generally hasweathered the global financial crisis well.Average values are now 24 per cent abovepre-downturn levels in 2007, thanks tothe capital’s reputation as a safe haven forinvestors from around the world and asupply of homes that is easily outstrippedby demand. W

ords

:ChrisPartridge

NewOPPORTUNITIES

Dominic Grace of Savills Residential Development on how toensure a new-build investment delivers maximum capital growth


1

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| WORLD CITY |

Dominic GraceSavills London

Residential Development+44 (0)20 7409 [email protected]

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COUNTRY RETREATSChapte r 2

THE GRASS IS ALWAYS GREENERA rural retreat is seen as the ultimate home for many

property buyers, whether it’s a classic rectory, an idylliccottage or a grand Georgian residence. So it is no

surprise that the value of country houses in key locationshas risen by 9.5 per cent in the past three years.

Barometer onlineFor the latest insights into prime country homes,


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Buying into theFAIRYTALEBuyers are enchanted by classic country homes. But what

types of houses and locations are the smartest investments?Words GrahamNorwood Illustration Hattie Newman

| COUNTRY RETREATS |


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HugoThistlethwayte, Savills Prime Purchase+44 (0)20 7881 [email protected] Buckley, Savills Salisbury+44 (0)1722 426 [email protected] Kannreuther, Savills Chester+44 (0)1244 323 [email protected]

MOVINGTO the country is a dream formany city dwellers. It’s a chance to use theequity built up in their urban homes to buya peaceful rural retreat. But what types ofcountry homes are the best long-termpurchases for city buyers and what are thepitfalls 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 HugoThistlethwayte of Savills Prime Purchase.“But there is a big difference betweenprivacy and isolation. Homes that are partof a community, with good road and railconnections for work and school, aremuchmore likely to hold their value in the longrun. They will be seen by purchasers, notjust as a weekend home, but also as a full-time residence.”Quite often work journeys can involve,

if not a daily commute, then regular trips toLondon. Which is where a knowledge ofthe railway timetable comes in handy.“If you can drive from your village

home to a mainline station that is around90 minutes from London, so much thebetter,” says Hugo. “It really helps to addto the appeal of a property.”But style is just as important as location.

When it comes to the types of homes thatare most likely to retain their value, periodproperties remain firm favourites, withGeorgian houses particularly sought-after.“There is something that is uniquely

English about a Georgian house,” explainsHugo. “Which is why purchasers oftenconsider them to be the ideal countryhome. As a result, they tend to performwell in the market.”

the New Forest the home of choice is aclassic, thatched cottage.However, some heritage properties can

be a challenge for both buyers and sellers.Tudor and Elizabethan homes may lookbeautiful, but they can be expensive to run.The main issue is the energy bills – anunmodernised, 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 fromhomeowners telling us that they’ve decidedto sell because they can’t afford anotherChristmas running up the kind of fuel billsthey’ve just received.”As well as historic homes without

central heating, the other kind of propertyto avoid is one that might soon have a100 ft wind turbine next door.“These days, concerns over protecting an

investment are at the forefront of mostpeople’s minds,” explains Tim. “While therecent drive for renewable energy iscommendable, a large wind turbine onyour doorstep will have a negative impacton value and saleability.”From planning applications to train

times, it certainly pays to do detailedresearch.That way you can be sure you’rereally buying a dream country home.

It’s not just architectural charm thatmakes Georgian properties popular, theyalso work well on a practical level. Withspacious rooms, large windows and highceilings, these houses are well suited tomodern living.

“There’s a flexibility about Georgianproperties that gives them a broad appeal,”says Tim Buckley of Savills Salisbury.“Rooms are usually bright and light withscope to be updated to the changingdemands of family life. A good example isthe kitchen. This is often the hub of amodern home, but originally it would havebeen small and tucked away. However,thanks to their generous proportions,Georgian houses can be reconfigured tocreate a much larger family kitchen.”Georgian homes might well win the

popular vote, but there are other strongcontenders.“Rectories are very attractivefor buyers,” says Charles Kannreuther ofSavills Chester. “They are substantialfamily homes, but tend to be domestic inscale. Their location is also important.They have usually been built at the edge ofthe village, so they are close to the localshop and pub, but also have views overopen countryside.”Equally popular are authentic houses

that are typical of a particular area. Forexample, the top of everyone’s wish list inrural Oxfordshire and Gloucestershire is ahouse made of Cotswold stone, while in



❝Homes that arepart of a community,with good road andrail connections, aremore likely to hold

their value.❞

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MAKING HISTORYFrom a beautifully restored historic home to a modern classic,

we reveal how to create a country home fit for 21st century livingWords Clive Aslet




ONTHE LISTWhat to expect when yourenovate an historic home

You should get used tobeing inspected. An historichome is likely to be listed andwill attract a lot of interest

from the conservation officer.

Pick experts with relevantexperience. If your designteam has credibility in theeyes of the authorities it willmake things much easier.

Keep an eye on costs. It islikely consultants’ fees will

account for up to 25 per centof the budget. Don’t forget tofactor in VAT. Repairs andimprovements to existing

dwellings are normally ratedat 20 per cent, which isa serious extra cost.

�

YOU WANT A COUNTRY HOUSE.You want one that is beautiful and reallyworks in terms of 21st century lifestyleand technology. So is it better to renovatean old property, which might be ramblingbut has the charm of age, or start fromscratch and create a building that makeshistory, rather than embodies it?“It’s a dilemma that faces would-be

owners, particularly in those parts of thecountry where the supply of good-qualityhistoric houses outstrips demand,” saysMichael Gatehouse of Savills Newbury.Joanna and Peter Jensen decided to go

down the restoration route when they fellin love with Ibthorpe Manor Farm, ahandsome Grade II* listed house inHampshire that dates from the reign ofQueen Anne.“It was built around an enclosed yard,

with threshing barns and stables,” saysJoanna. “It gave Ibthorpe a ramshacklecharm. 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 bothsympathetic to the past and forwardthinking,” says Joanna.They found just theman they needed in George SaumarezSmith of Adam Architecture.

At Grade II* listed Ibthorpe Manor, the renovationwork ranged from rebuilding the Victorian wingto adding elegant new furnishings and lighting.

BACK IN TIME




HISTORY LESSONSThe key details thatdefine Georgian style

Original Georgian houseswere built in the Classicaltradition. It is a look framedby columns, cornices andtriangular pediments.

Grand homes often hadan imposing staircase witha timber handrail andelegant iron balusters.

Georgian houses used sashwindows with small panes ofglass separated by glazing bars.

Rooms featured Classicalfireplaces and plasterwork,along with high ceilings.

The project began with a programme ofhistorical research. “This established thatthere had once been a wing to the east ofthe house, perhaps containing a buttery,”explains George.He was able to obtain the necessary

listed building consent and planningpermission to build a family wing, with abig kitchen, on the old footprint. Theproject also included taking down a poorlybuilt Victorian wing on the north side ofthe property and rebuilding it behind theseven-bay façade of the house.George believes this should encourage

owners who fear that the listed status oftheir prospective home will unduly cramptheir style.“While Grade II* listing does impose a

lot of restrictions, we roughly doubled thesize of the house,” he says. “Traditionally,old houses were very rarely preserved inaspic. They underwent continual cycles ofchange whenever a new owner came in.”

REALISTIC EXPECTATIONSHowever, even with extensive renovations,it would be wrong to expect absoluteperfectionwhen it comes to the functioningof an old house.“No matter what you do, Georgian glass

is apt to leak,” says Joanna Jensen. “We livelike moles, sprinting through the main partof the house when it isn’t heated.” Thatsaid, the romantic appeal and historicsignificance of an old building makes suchmodest compromises a small price to pay.“You don’t do the restoration for

yourself,” explains Joanna. “You have tothink ahead 100 years. It’s less about you,all about your property.”

So what about the costs? The acceptedwisdom is that restoring an old house,especially a listed one, is more expensivethan building from new. It’s also far harderto predict the final bill as you can neverknow what is lying behind the lath-and-plaster walls until the work starts.

Baybridge Park takes the elegance of classic Georgian style and brings it up to date with a stylishmodern interior. Facilities include an impressive leisure complex, complete with swimming pool.

MODERN CLASSIC




Michael Gatehouse, Savills Newbury+44 (0)1635 277 [email protected] Chute, Savills Country Department+44 (0)20 7016 3822, [email protected]

For Michael Gatehouse, it’s an expensethat’s well worth paying. “Old housesoften occupy the very best locations,” hesays. “Finding the equivalent today fora new build, and making it look like thenew house belongs in the landscape, can beincredibly challenging.”

INSIDE STORYThis was exactly the challenge faced byarchitect Scot Masker of Pro Vision. Hedesigned the Georgian-style BaybridgePark, which is also located in Hampshire.Although created from scratch, it is hardto believe that the house hasn’t sat in thisbeautiful countryside for over a century.There’s no doubt about the property’s

wow factor. The understated character ofthe exterior, which might have beencreated by a Georgian master builder,hardly prepares visitors for the dazzlingdesign 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 periodfeel. It has a games room, swimming pooland basement cinema. The one bigadvantage of building from scratch is thatyou get everything just as you want it.”

Before work began the site lookedinauspicious. Part of it was occupied by abreaker’s yard, where lorry engines werereconditioned. All the existing structureswere demolished and the site scraped backto the underlying chalk.The house now sits in beautifully

landscaped grounds and has uninterruptedviews across the countryside. It is a perfectsetting for a grand country home thatsuccessfully combines a sense of heritagewith 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 ofquality historic homes and a flow of moneyout of London has created a new generationof attractive, impressive rural residences.“Like Baybridge Park, these are very

high-quality buildings that use traditionalmaterials but meet the needs of a modernlifestyle,” says Charles Chute of SavillsCountry Department. “For example,sustainability is now an important issue formany owners and there is no doubt that itis easier to incorporate the latest greentechnology into a new house than retro-fitit into an old one.”The main drawback to creating a new

country home used to be the lack ofcraftsmen with the right skills. But HughPetter of Adam Architecture insists this isno longer the case.“There are hundreds of craftsmen

coming out of the Building Crafts Collegeat Stratford,” he explains. “The real worryis 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 wouldlike to do a similar project elsewhere.

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Richard Binning andAlex Lawson of Savills.

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IT’S NOT DIFFICULT to see why ruralestates have become so popular withinvestors. Savills Estate BenchmarkingSurvey reveals income from estates hasgrown every year since 2000, a strong resultconsidering the economic climate.But what’s really catching investors’

attention is capital growth.The outstandingperformance of the farmland market, withvalues up by 10.7 per cent, has ensuredrobust pricing for rural estates.“Farmland is seen as a secure base for

investment, thanks to good arable profits inrecent years,” says Richard Binning ofSavills Rural. “It’s seen as a safe haven thatoffers significant tax breaks.”Along with arable land values, other

estate assets have performed well. “Theresidential letting sector showed a totalreturn of 4.5 per cent,” says Richard. “Letcommercial property was also positive, withcapital growth of 6.3 per cent and netincome of 7.1 per cent.”Although woodland has not performed

as well as farmland in recent years, thegrowing role of renewable energy is set tohave a significant impact on values.“Interest in biomass energy has boosted

demand for woodland and that is filteringthrough to higher prices,” explains Richard.Given the sustained rise in global

commodity prices, perhaps it is notsurprising that investors have focused onbuying productive land and shown lessinterest in acquiring residential property.Asa result, it’s not unusual for the principalhouse on a country estate to be soldseparately, along with a parcel of adjacentamenity land.

“This appeals to lifestyle buyers, who donot want to take on the business side ofrunning a farm,” says Richard.However, this isn’t always the best

investment decision.The marriage value ofa mixed estate, taking account of all theelements, from land to houses and buildings,can actually be larger than breaking it upinto separate parcels.“This can have a significant impact on the

long-term investment,” says Alex Lawsonof Savills Farms and Estates. “For example,owning a productive mixed estate has


A Good SportHow to protect grouse moors

“Keeping grouse moors in peak conditionis vital to maintaining their capital value,which is based on the 10-year average bag

for the season.The key is to employ the rightkeepering staff and incentivise them.Also,

take steps to improve the habitat – a carpet ofheather will be the most productive. Finally,to minimise parasitic threats, stay informedabout the latest scientific developments.”Alex Lawson, Savills Country Department

substantial advantages when it comes tooffsetting inheritance tax.”The impact of farmland investment can

clearly be seen in the relative values of landand property. Over the past five years, thevalue of farmland and agricultural buildingshas risen by 66 per cent, while the price ofprincipal 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 firsthalf of 2012,” says Alex. “Once theresidential market has recovered, weanticipate the return of premium prices andmarriage values for the best estates.”But the quality of the house remains

paramount as the market recovers. “Anyblight tends to be magnified when themarket is slower, allowing buyers to exploitflaws to negotiate the price,” explains Alex.“But prime estates remain in demand andcan still generate a huge amount of interest.”If any further proof were needed that

rural estates are a good investment, considerthis: banks will actually fund purchases.“The one area that banks are keen to lend

against is land,”says Alex.“So a lot of buyersare borrowing to fund purchases at themoment. Although many have significantcash reserves, interest rates are low, so it isoften the most cost-effective way to buyright now.”

Richard Binning, Savills Rural+44 (0)1865 269 [email protected] Lawson, Savills Farms and Estates+44 (0)20 7016 [email protected]

We discover why primecountry estates are

catching the attentionof smart investors

Words Olivia Cooper Photograph Amorfo

BACKto the

LAND

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SCREENGRAB

This six bedroom house has many original features, including intricate plasterwork andfireplaces. It also has an integral one bedroom flat and outbuildings. EPC Rating = F.

Guide £2million / about 12.5 acres

Tony Morris-Eyton, Savills Telford+44 (0)1952 239 500, [email protected]

Loynton HallNear Newport, Staffordshire / Shropshire border

A notable Georgian house overlooking parkland

Country classicsGrand rural residences thatoffer space, tranquillity andthe best of country living


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Ridge Hill ManorNr East Grinstead, West Sussex

Ruchlaw HouseStenton, East Lothian

Old College HouseNewmarket, Suffolk

Green and pleasantThis seven bedroom house lies in

a small estate of formal gardens,matureparkland and woodland. It includes

a lodge and cottage, both withtwo bedrooms, plus a three bedroom

gardener’s cottage.Guide £4 million / 48 acres

Key features• Galleried drawing room

• Period features include exposedtimbers and open fireplaces

• Integral annexe for staff/house guests•Two Victorian greenhouses•Tennis court and paddocks

• Garaging• Superb southerly views

• EPC Rating = G

Sophie Wysock-WrightSavills Haywards Heath+44 (0)1444 446 [email protected]

A Scottish classicA fabulous example of Scottish baronialarchitecture, this nine bedroom propertydates 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• 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

Malcolm LeslieSavills Edinburgh

+44 (0)131 247 [email protected]

Schoolhouse charmDating from 1867, Old College House

lies in the picturesque village of Cowlinge.It is now a sympathetically renovated

family home with six bedrooms, a familyroom, a music room and exceptionalgardens of mature trees and shrubs.

Guide £1.25 million / 6.9 acres

Key features• 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

Ed MeyerSavills Cambridge


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OWNING A COUNTRY HOUSEis often the fulfilment of a lifetime’sambition.Whether the aim is to preserve thehouse for the next generation, or enhancethe value for when it is time to move on,it’s important that owners have a clear plan.Here are four areas worth considering.

Prioritise MaintenanceEven if a property is in tip-top conditionwhen you move in this doesn’t mean thatyou can totally relax.A cyclical programmeof repainting and repair is essential. Withregular maintenance it is amazing howa house that was improved over twodecades ago can still look as if it has justbeen finished. Most importantly of all,don’t forget valley gutters and drainpipesas these usually cause the most damagewhen there is a problem.Skimping on any element of the

maintenance of the house at the outsetis very likely to prove detrimental in thelong run.

A quest ion ofMANORS

Securing the future of a country house requires strategic planning,explains Crispin Holborow of Savills Country House Department


Cut Costs and Add IncomeWhen it comes to cutting costs, greeninitiatives, such as solar power panels,biomass boilers and insulation, areeffective ways to reduce energy bills.Thereare also significant grants available tooffset the installation costs.As for income, renting out sheds,

secondary cottages and solar parks canprovide valuable additional revenue.Thesesources of income do not require too much

1

2


Crispin HolborowSavills Country Department


extra annual investment after the initialset-up costs and will help to ensure thatthe next generation will also be able toafford to live in the main house.

Ensure Privacy is ProtectedPrivacy is a key attraction of owninga country house. So, even if the publicfootpath down the drive doesn’t botheryou, it may affect a future occupier.Takingsteps to divert public paths, or buying extraland to protect your privacy, is worthwhile.

Be a Cautious SellerIt is tempting to sell surplus cottages orbuildings for development when cash flowis low.But if these are close to the house, thearrival of near neighbours could undermineits value. It is better to sell off a piece of afield at the end of your land for development.Make sure it is landscaped first to guaranteeyou can’t see any new houses.

3

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ON THE RIGHT TRACKThere are 2.5 million holders of rail season tickets andthey are a powerful force in the £1million-plus market.

Homes within 60 minutes of London have always attracteda premium. But now, with better connections, houses in citiessuch as Oxford and Bath are joining the million pound club.

MILL ION POUND CLUBChapte r 3

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COMMUTER TOWNS have alwaysappealed to people who want to earn aLondon salary but enjoy a country lifestyle.However, some of these sought-after townsare genuinely in a league of their own.There is a collection of hotspots in a ringaround the M25 where one home in threehas an asking price of £1 million or more.We have highlighted five of them on ourmap (shown right).So what makes these towns so popular

with affluent buyers? “They share the holytrinity of top property locations: excellenttransport links, green spaces and goodschools,” says Richard Winter of SavillsEsher. “In fact, many of the towns andvillages lie in regions that still have thegrammar school system.”Then there’s the local housing stock.

These areas typically have larger Georgian,Victorian and Edwardian homes that offervaluable space and flexibility.“The style of architecture is definitely part

of the appeal,” says Guy Robinson of SavillsWindsor. “As well as being ideal for familylife, they bring real character to the towns.”

London is circled by élite commuter towns whereprices for family houses can easily reach £1 million.We take a tour around the capital’s ring of gold

Words Claire Coleman Illustration Telegramme

RINGof

GOLD

Add in a proper high street and it’s easyto see the attraction of areas that seem tobelong to a quieter,more genteel time.In fact, according to social commentator

Sarfraz Manzoo, it’s nostalgia that drawswealthy buyers to these quintessentiallyEnglish towns. “We all have an inbuiltnostalgia for the childhood we remember,wherewe played outside and going to schooldid not involve two bus rides,”he says. “Thedesire tomoveoutofLondon is away topassthat childhood on to our own children.”But above all, it’s the location that earns

a premium frombuyers.They are looking foreasy access to London for stylish nights outand well-paid jobs, combined with thecommunity 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 [email protected] Robinson, Savills Windsor+44 (0)1753 834 [email protected]

| MILLION POUND CLUB |


ASCOTA country town 25 miles from London,popular with wealthy foreign buyersCOMMUTE: A 54-minute train ride toWaterloo; close to the M3, M4, M25.

ENJOY: Monthly race meetings and theRoyal Ascot festival every June.

TRY: The Drawing Room restaurant atthe Coworth Park hotel nearby.

IDEAL HOME: “A custom-built houseon the famous Wentworth Estate fourmiles away is the ultimate,” says Daniel

Burstow of Savills Sunningdale.

BeaconsfieldA thriving market town in theChilterns with a lively arts scene

COMMUTE: Just 25 minutes by train toMarylebone; near the M40 and M25.SCHOOLS: “There is a grammar andan independent school, while Eton andHarrow are only 40 minutes away,” saysAndrew Cronan of Savills Beaconsfield.ENJOY: The Swan Theatre and theChiltern Shakespeare Company.

IDEAL HOME: A period house withspace for the family inside and out.

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Super SuburbsProperty hotspots around the UKthat outperform the local market

Morningside in Edinburgh isa perfect example of a desirable enclave thatcommands a premium over the city centre.

Just a 15-minute stroll from the city’sfinancial centre, properties here can cost

49 per centmore than other neighbourhoods.“There are excellent shops, good local

schools within walking distance and even atheatre and independent cinema,”says PeterLyell of Savills Edinburgh. “Everything isright on your doorstep, so it’s no surprisethat once people move into the area they

really don’t like to move out again.”The same is true of Westbury onTrym

outsideBristol. “The housing stock is a mixof Georgian and 1930s houses, perfect for

families,” says DavidWild of SavillsClifton. “This is in contrast to the city centrewhere you’re likely to find purpose-built flats

more suited to singles and couples.Thevillage has a great range of amenities, fromindependent bookshops to craft stores, andis also home to Bristol’s onlyMichelin-

starred restaurant,Casamia.”

Six More HotspotsAreas that beat average city prices

CobhamThis Surrey town of 10,000 residentshas a good stock of large family housesCOMMUTE: “Forty minutes by train toWaterloo or use the fast line from Esher,”says Ian Camplin of Savills Cobham.SCHOOLS: There is ACS CobhamSchool, two prep schools and threeindependent secondary schools.

RELAX: Golf, football, cricket, rugbytennis and riding are available locally.IDEAL HOME: A detached housein a secure, gated development.

Much HadhamA Hertfordshire village of 2,000people with an active communityCOMMUTE: Just under 40 minutesby train from the nearby Bishop’s

Stortford station to Liverpool Street.SCHOOLS: “There’s an outstanding

state primary and six secondaries withina 20-minute drive,” says Justin Godfrey,

Associate Director of Savills.ENJOY: Tennis, bowling and golf clubs.

IDEAL HOME: Period mansionhouses or barn conversions.

HartfieldA pretty Sussex village which hashistoric links to Henry VIII

COMMUTE: It’s a 25-minute driveto 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 unspoiltas you can get close to London,” says WillPeppitt of Savills Country Department.IDEAL HOME: Five bedroom detached

house with stables and paddock.

PREMIUM

SHEFFIELD: FulwoodMANCHESTER:West DidsburyLEEDS: AlwoodleyLIVERPOOL: GateacreBIRMINGHAM: EdgbastonCARDIFF: Cyncoed

+93%+73%+56%+54%+35%+15%


Vellore HouseA splendid seven bedroom mansion set inthree acres with views of the Firth of Forth.

Guide price: £995,000

From this grand Scottish mansion to a Cornishmanor, you’ll be amazed at what the equity in atwo bedroom London flat can buy around the UK

Words GrahamNorwood

TheBIGGER

picture




Trading PlacesFrom London to the country

The London Apartment:St George’s Square, SW1

A two bedroom duplex apartment in oneof Pimlico’s most prestigious squares.

Price: £1.6 million

For details of these properties, please go to savills.co.uk

The Château: Plas CilybebyllThis nine bedroom château-style home

near Swansea is set in two acres.Price: £1.5 million

The Manor:Tremeere, CornwallAn immaculate Grade II listed manor withseven bedrooms and 9.8 acres of grounds.

Price: £1.35 million

The Historic Home:The Brookhouse, ShropshireThis beautiful four bedroom house datesfrom the 17th century.Price: £995,000

OF ALL THE reasons people give formaking the move out of London, there’sone thing everyone agrees on – you get a lotmore for your money outside the capital.“There has never been a bigger price gap

between London and the rest of thecountry,” says Yolande Barnes of SavillsResearch. “Back in 2005, the sale of a primehouse inWandsworth would have bought acountry house atWimborne in Dorset witha third of the proceeds left over. Now, justeight years later, the sale of that sameWandsworth property will buy two primeWimborne houses with 14 per cent of theproceeds leftover.”Thanks to this huge price differential,

London buyers have an opportunity toupsize to a property that is at least twice aslarge as their current home, and in somelocations considerably bigger. For example,if you own a home in Islington it will beworth, on average, £485 per square foot,while homes in Kensington and Chelseaaverage £750 per square foot, according toLloyds Banking Group. Of course, in manyprime pockets values are substantiallyhigher. Compare that with country costs:Berkshire is only £210 per square foot andWarwickshire is £210, while Hampshire iseven better value at £190.

ANACTIVE INTERESTThis equates to a lot of house for yourmoney. So it’s not surprising that Londonbuyers are active in key country markets.When it comes to homes within an hour ofthe capital, London buyers represent asmany as 50 per cent of transactions handledby Savills. Further away, where train travelto London takes from 90 minutes to threehours, the proportion is 30-40 per cent.“The typical mover from London is a

family that has two children,with one of theparents still working in the capital duringthe week,” explains Tony Morris-Eytonof Savills Telford, who markets homesin Shropshire, Staffordshire and Wales.

“They are looking for a substantially biggerhouse than their London home – often anattractive former rectory or farmhouse.”For these upsizers, space is key. They

require plenty of bedrooms and extensivegardens. The chance to own amenity land,for example a paddock for the children’sponies or an orchard, is an added incentive.There is another, less obvious reason why

Londoners are looking for homes outsidethe capital – school fees. “Even havingpurchased a large home in the country, thereis oftenmoney left to put towards the cost ofeducation,” says Paul Jarman of Savills Bath.

WORKING ITOUTThe ability to work from home has had asignificant impact on the location ofproperties that upsizers are buying. Nowthat broadband and 3G are available across99 per cent of the UK, buyers can movemuch further away from London.“Being able to work effectively from

home means that the commuting week canbe shortened by a day, sometimes two,” saysJulian Archard of Savills Cheltenham.The most adventurous upsizers can sell

an apartment in London and buy nothingless than a mansion in Scotland or a manorhouse in Cornwall, and still have change.“It is an unique opportunity to enjoy

a completely different lifestyle in anoutstanding property,” says Tony Morris-Eyton. “Given the price gap between thecapital and the country, these are no longerfantasy homes – for many Londoners, theyare now genuinely affordable.”

Tony Morris-Eyton, Savills Telford+44 (0)1952 239 [email protected] Jarman, Savills Bath+44 (0)1225 474 [email protected] Archard, Savills Cheltenham+44 (0)11242 548 [email protected]

hutterstoc

k



Perfect settingThis five bedroom house, which is located in

the cathedral close, has no shortage of historicalfeatures and an exceptional 590 ft garden.Guide £5.5million / 1.7 acresCharles Stone, Savills Salisbury

+44 (0)1722 426 820, [email protected]

The North CanonrySalisbury,Wiltshire

A fine Grade II* listed house with exceptionalgardens leading down to the River Avon

Town and countryElegant family homes that strikethe perfect balance betweencountry living and city style


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20 Royal CrescentBath, Somerset

Camilla LaceyWesthumble, Surrey

Peveril HouseSwanage, Dorset

First in classThis Grade I listed residence has

been recently refurbished throughout.The house has five bedrooms overfour storeys and includes a modern

kitchen / breakfast room that overlooksa formal landscaped garden.Guide £3.2 million /share of freehold

Key features• Beautiful views across the

crescent to the city• Grand reception hall

•Two main reception roomswith spectacular high ceilings

and period features• New kitchen / breakfast roomdesigned by a leading architect

• EPC Rating = D

Luke Brady, Savills Bath+44 (0)1225 454 [email protected]

Spacious livingBuilt in 1919, this Surrey Hills propertyhas recently been extensively upgraded.The result is an impressive and quiteunique country house of enormouscharacter, with a wealth of preservedperiod features, that is perfectly setup for 21st century family living.

Guide £3.5 million / 2.1 acres

Key features• Six bedrooms, dressing room and fivebath / shower rooms (one en suite)

• Reception hall, drawing room, diningroom, 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

Andrew Giller, Savills Guildford+44 (0)1483 796 [email protected]

A Dorset delightPeveril House is regarded as one of themost prestigious properties in Swanage.Constructed in the mid 19th century, theproperty is beautifully presented andretains many original features. Set in

almost an acre of delightful and secludedgrounds with views across Swanage Bay.Guide £1.85 million / 1 acre

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

Keith Fensom, Savills Canford Cliffs+44 (0)1202 708 [email protected]


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Sophie ChickSavills Research


CambridgeNot so long ago, trains used to take twohours to get from Cambridge to London.Today that is down to just one hour andeight minutes.This famous university citynow offers affluent homebuyers not onlya historic city centre, but also a feasible

daily commute into London.This journeyis greatly helped by the fact that trains

arrive at Liverpool Street, which is withinwalking distance of a large number ofthe biggest finance houses in the City.Although a fair smattering (15 per cent)of all purchasers in Cambridge are fromoverseas, lured by the city’s distinguished

history and architectural beauty, themajority (85 per cent) are from the UK.

Among them is a significant proportion ofBritish scientists and engineers employed

in the so-called “Silicon Fen”. Giventhe London commute and local workopportunities, it’s not surprising that inthe past three years some 18 per cent ofSavills homebuyers have been happy topay over £1 million for their property. Words

:Christoph

erMiddleton

.Statistic

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On theSPOT

Sophie Chick of Savills Research on three “mini-London” hotspotsacross the UK with strong demand for £1 million-plus homes


1 3


OxfordOxford may be only 10 minutes closer toLondon by train than Cambridge, buthouse prices here are much higher, with39 per cent of homes sold by Savills goingfor over £1 million. Although Londonersmake up 17 per cent of buyers in the£1 million to £2 million bracket, and30 per cent of £2 million-plus homes,

the majority are from Oxfordshire.Theywork in commerce or the public sector,

as opposed to financial services.

BathWhen it comes to beautiful Georgianarchitecture, it’s difficult to match theWorld Heritage site of Bath.The

sweeping 18th century Royal Crescenthas to be one of the most handsomeplaces to live in the UK, while the citycentre is among Britain’s finest (just askJane Austen). Famed for its genteel

character and sedate cream teas, ratherthan a fast pace and urban buzz, Bathattracts a large number of well-heeledbuyers.That is why 37 per cent of thehomes sold by Savills change handsfor more than £1 million.This city ofsoothing spas and graceful crescents

has an enduring appeal for hard-pressedLondoners, who currently make up34 per cent of all buyers above the£1 million price mark.What’s more,

45 per cent of these purchasers continueto work in central London once theyhave bought in Bath, undeterred bythe commute of one hour 24 minutes

by train into Paddington.

2

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SILV ER L IN INGChapte r 4

HOME FROM HOMEIn England and Wales, 1.57 million people have a second home,with Cornwall being the most popular location. When it comesto the most active buyers, the “grey pound” currently dominatesthe UK second-home market. Equity-rich, over-50s buyerscurrently account for half of all second-home purchases.

Barometer onlineFor the latest insights into UK second homes,


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When it comes to finding a second home in the country,it’s difficult to beat this idyllic house in the Cotswolds

PICTUREPERFECT

MA ST E R C L A S S

| SILVER LINING |

Words Ruth Corbett


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| SILVER LINING |

-38 -savills.co.uk/barometer

GUESTACCOMMODATION

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 POOLThe crucial element is whether the pool is

indoor or outdoor.The latter is widely regardedas a liability, while a well-designed indoor pooladds significantly to the value of a property.

BOATHOUSEIf you’re lucky enough to have a water frontage,a boathouse solves a lot of storage problems.

On the Wish ListMark Oliver of Savills East Angliaon the extras popular with buyers

IF YOU ARE looking for the idealsecond-home location, the Cotswolds isin a class of its own. It is almost a fantasydreamt up by world-weary Londoners,with peaceful villages, quaint pubs andopen countryside.However, finding the perfect home in

the Cotswolds is not as easy as you mightthink. It’s the combination of elementsbuyers are looking for that presents thechallenge. For over-50s buyers, who nowdominate the market, this typicallyincludes an historic house, a refurbishedinterior, plenty of room for guests, goodtransport and a thriving local community.It’s quite a list.So what would the ideal Cotswolds house

actually look like?The answer might well beTheMalt House, a beautiful Grade II listed,17th century house in Broad Campden.For three of its four centuries this was thelocal malting house, where cereal grain wasconverted into malt for use in brewing beer.For the past century the house has beenused as a single family dwelling, set in2.6 acres of grounds.“In terms of its look and location,The

Malt House sums up the appeal of a trueCotswolds home,” says Giles Lawton ofSavills Country Department. “It has realcharacter and is located in a thriving

village, which is a big draw for manysecond-home buyers.They want a propercommunity, not a dormitory town.”Inside,The Malt House lives up to the

expectations of even the most demandingbuyer. It has retained its historic character,with plenty of original features, but hasbeen updated to meet the needs of amodern family. For example, five of theseven 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 timberbeams, mullioned lead windows and cosywindow seats create the authentic countryfeel 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 wellas separate guest accommodation.“The house comes with an annexe,

which has its own entrance,” says localagent Nick Rudge of Savills Banbury. “It’sideal for guests as it has its own sittingroom and three bedroom suites.Of course,it could also be used as a home office forpeople who want to divide their workinglife between London and the Cotswolds,which is now a requirement for anincreasing number of buyers.”

B R I E F I N G

The Malt HouseBroad Campden

Charming Cotswolds homelocated in a conservation area.Includes guest accommodationand thatched summerhouse.


| SILVER LINING |


Giles LawtonSavills Country Department+44 (0)1865 339 [email protected] Rudge, Savills Banbury+44 (0)1295 228 [email protected]

The outside spaces are equally wellthought out. From the pretty thatchedsummerhouse to the elegant garden,complete with its own small stream,it’s a peaceful haven that perfectlycomplements the house.The final piece of the second-home

puzzle is transport, which is a deal-makerfor most buyers. “No-one wants to takehours getting to a home in the country,”says Giles. “People want to spend time intheir 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 LondonPaddington, taking around one hour35 minutes. It’s a practical considerationthat underlines the property’s appeal.“This is a classic Cotswolds country

house in an area that is a perennialfavourite for a second home,” saysArabella Youens, Property Editor ofCountry Life. “Buying a house like this isa sensible move because, while the buyermight only want it as a second home, ifthe house comes with sufficient land andseparate guest accommodation, it’s alsoticking all the boxes for a future buyerwho is looking for a classic family home.This keeps one’s options open to bothmarkets when it comes to selling.”

It’s this element of adaptability thatmarks out The Malt House. Of the fewquintessentially English country housesavailable in the Cotswolds, those thathave flexibility are the most sought after.“The Malt House can accommodate

changing family life,” says Giles. “There’splenty of space to welcome children andpartners, but it’s also intimate enough fora couple to enjoy.”When it comes to the wider Cotswolds

market, it is a good time to be an equity-rich, over-50s buyer. Country house prices,even in prime parts of the Cotswolds, arevery attractive at the moment.“Really good country houses don’t

come up for sale that often,” says Giles.“This is particularly true of the Cotswoldswhere there is a limited supply ofproperties in the best locations. Thecurrently favourable market offers buyersa rare window of opportunity to find theirdream second home.”

1. Cornwall2. Cambridgeshire

3. Devon4. Suffolk5. Wiltshire6. Perthshire7. Somerset

8. Gloucestershire9. Norfolk

10. Hampshire

Home from HomeTop 10 locations around

the country for over-50s buyers


- 12 -

Phillippa Dalby-Welshand Peter Ogilvie of Savills.

SURF & TURFHomes by the sea command a premium. But if buyers

look a few miles inland, they can get more for their moneyWords Andrew Gillingwater Portrait AndrewMontgomery


| SILVER LINING |


NorfolkCOASTAL 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 andriver views. It had a guide price of just over£3 million. If that same house were situated

10 miles inland, the price would dropby around 30 per cent.”

Louis de Soissons, Savills Norwich

IT’S NO SECRET that prime postcodesplay a key role in property prices. When itcomes to country homes, what is less wellknown is the value of a view, especially overthe coast. In fact, for those looking to buy asecond home, the value of a sea view canhave 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, butowning the frontage would add as much as100 per cent,” says Phillippa Dalby-Welshof Savills Country Department. “There’san element of prestige about being onthe water – it’s both the scarcity of coastalproperties and the lifestyle that comes withthem that people are paying for.”Just being in a seaside town is enough to

boost prices.An analysis of 10 prime coastallocations across Britain by Savills shows thatproperty values are on average 35 per centhigher than those for comparable homes justa few miles inland. “The premium dependson the area and the characteristics of theproperty,” says Phillippa.Coastal locations that offer the complete

package of attractive housing stock anddirect access to water are among Britain’smost élite property hotspots. Nowhere isthis more true than in Sandbanks,Dorset.Dubbed Britain’s Monte Carlo, this

unique, mile-long spit of sand betweenPoole Harbour and Bournemouth is hometo some of the country’s most exclusive andexpensive waterfront properties.“Sandbanks becameparticularly attractive

to buyers about a decade ago as thesecond-home market boomed,” explainsPhillippa. “The limited supply of housingand the attractions of the surroundingarea – blue flag beaches, Poole Harbour,golf and sailing clubs – give Sandbanksan air of exclusivity.”A six bedroom home with views

over the harbour in Lilliput, just a mile

outside Sandbanks, would sell for around£2.3 million. If it had a prestigiousSandbanks address, the price would easilyreach £4 million.The value of a view isn’t restricted to

coastal properties. Riverfront homes alsocommand a premium.“In the east of England, a home with a

prime river view will always trump theequivalent property on the coast,” says PeterOgilvie of Savills Ipswich. “A riverfronthouse has substantial benefits. For example,properties with prime river frontage oftencome with a mooring, which allows theowners 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 primewaterfrontdestinations. “These include Salcombe,Dartmouth and Aldeburgh, as well as themost 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 andfacilities as their famous coastal neighbours.“In the south-west, there are towns like

Brockenhurst and Kingsbridge that offergood value for buyers,” says Phillippa.“While in the east and north, Framlinghamand Alnwick are over a third cheaper thanthe nearest seaside towns.”So, if you’re thinking about buying a

home on the coast, it might well be worthcasting your net a little further afield.

Phillippa Dalby-WelshSavills Country Department+44 02 (0)7409 [email protected] Ogilvie, Savills Ipswich+44 (0)1473 234 [email protected]

The Water MarginSmart inland alternativesto prime waterside locations

South HamsCOASTAL LOCATION:Dartmouth

INLAND LOCATION:Totnes

DISTANCE INLAND: 12 miles

PRICE DIFFERENCE: 38 per cent

“Deans Lodge in Dartmouth, which isa large house with water frontage (above),was sold last year for £2 million. A similarproperty in Totnes, a few miles inland,

would go for £1.25 million.”Richard Addington, Savills Exeter

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The great escapeEnjoy a slower pace of life withthese unique homes, each set

in an idyllic location


This attractive early Victorian townhouse occupies a prime position on the edge of Fowey Harbour onthe 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 £1.175million

Jonathan Cunliffe, SavillsTruro+44 (0)1872 243 200, [email protected]

37 EsplanadeFowey, Cornwall

Waterfront townhouse with stunningviews of Fowey Harbour

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| SILVER LINING |

Cromwell WingThurland Castle, Lancashire

RoundhillWhitsbury, Hampshire

Castle conversionThe Cromwell Wing is an impressiveconversion that forms a large part ofa Grade II* listed moated castle.Wellpresented throughout, the property hasbeen beautifully finished, combining

modern design with fabulous historicalfeatures, such as original fireplaces

and elegant ceiling cornices.Guide £1.2 million

Key features• Master bedroom suite

•Two further en suite bedrooms•Well proportioned kitchen/reception

• Grand drawing room withattractive original features• Parking for two cars• 10 acres of landscapedcommunal gardens

Ben Pridden, Savills York+44 (0)1904 617 [email protected]

Rustic charmThis exceptional property is brimmingwith character and charm. Enjoying

a wonderful rural setting 10 miles fromSalisbury, Roundhill Farm House hasundergone sympathetic restoration andimprovement.The wealth of features

include a thatched roof, exposed beams andinglenook fireplaces. EPC Rating = E.

Guide £1.15 million

Key features• Master bedroom withlarge 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

Emma Duffin, Savills Salisbury+44 (0)1722 426 [email protected]

The GranaryCastletown, Isle of Man

Quayside loft livingThe Granary enjoys a unique settingon the Quay at Castletown. Laid outover five floors, this newly converted

harbourside property has been renovatedto an exceptionally high standard withpine floors and exposed roof timbers.

The roof-top conservatory area opens onto a terrace with views across the bay.

Guide £1.35 million

Key features• Located in the town centre in

a stunning marine setting• Flexible accommodation of up tothree bedrooms and three bathrooms• Self-contained duplex apartment

• Large double garage•The original lifting wheel,preserved in a glass atrium

Mark Holden, Savills Wilmslow+44 (0)1625 417 [email protected]

42-43 Property Portfolio Silver Lining V3 Savills Iss03.indd 4342-43 Property Portfolio Silver Lining V3 Savills Iss03.indd 43 22/01/2013 09:2422/01/2013 09:24

Andrew PerrattSavills Glasgow


to the interior, if your family is keen on walking, skiingor boating, you will ideally need a separate room to storekit so you don’t need to bring it with you every time.

Rental LowdownTo attract the best rental income, your property mustlook good inside and out as most renters make theirdecisions based on brochures and websites. It might beworth appointing a holiday letting specialist. For a fee,typically 20 per cent of rental income, they will advertiseyour home,manage bookings and look after the property.Finally, think about hiring an accountant to maximise

the financial benefits of renting out your holiday home.Providing you make the propertyavailable for rent for at least140 days over a 12-month period,you can offset furniture, decorationand running costs (includinginsurance, agency and accountancyfees) against tax on rental income.You are also often allowed to claimtransport costs for occasional visitsto check the property.Although owning a holiday home

does require a little organisation, therewards can be great.

THERE ARE OVER 170,000 holiday homes inBritain.Whether they are bought for a family to enjoyor for rental income, it requires some careful planningto ensure that a property is the right investment and, ifrequired, will deliver valuable revenue.

Choose CarefullyIt’s not easy, but when it comes to buying a holiday home,try not to let your heart rule your head. A quaint cottagedown a narrow country lane might be your dream, butkeep in mind the practicalities. Low-maintenance homesthat are easy to get to should be at the top of your list.Youshould also be aware of local environmental factors. Someattractive areas can carry risks. If youare buying near the sea or a river,findout about flood risk. There mightalso be restrictions about owningand selling a property if it is in anarea of outstanding natural beauty.

Take it EasyYou will enjoy your property a lotmore if it is easy to use. Unless youare a very keen gardener, go for ahome that has easy-to-maintaingravel or decking. When it comes W

ords

:ChrisPartridge

At yourLEISURE

Picking the right location and being organised will help to get thebest out of a second home, says Andrew Perratt of Savills Glasgow

- 44-savills.co.uk/barometer

| SILVER LINING |

44 Silver Lining V2 Savills Iss03.indd 4444 Silver Lining V2 Savills Iss03.indd 44 17/01/2013 07:3617/01/2013 07:36

INVESTMENT POTENTIALChapte r 5

FINDING THE KEY TO GROWTHThe rental market is growing. By 2016, Savills estimates one infive households in England will rent in the private sector, which

is good news for landlords. But it’s not just the buy-to-letmarket that is expanding. There are exciting opportunities forlandlords and investors in the commercial and rural sectors.

45 Investment V2 Savills Iss03.indd 4545 Investment V2 Savills Iss03.indd 45 17/01/2013 09:2917/01/2013 09:29

Jane Ingram of Savills ResidentialLettings believes investors can beat theaverage yield on rental property.

The buy-to-let marketis resilient. But how caninvestors boost the yieldon their rental property?

Words Mark PalmerPortrait AndrewMontgomery

BEATthe

RATE

46-47 Investment V3 Savills Iss03.indd 4646-47 Investment V3 Savills Iss03.indd 46 19/01/2013 02:4919/01/2013 02:49

Loca

tion:

Roo

fTerrace

atSan

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ondo

n| INVESTMENT POTENTIAL |


Jane Ingram, Savills Lettings+44 (0)20 7824 [email protected] Wallace, Savills Sevenoaks+44 (0)1732 789 [email protected]

IT’S ONE OF the great comebacks.The financial meltdown of 2007 turnedthe buy-to-let market into a no-go zone formost investors. But over the past two yearsthe London market has performed so wellthat private investors, often disappointedwith mediocre returns from savingsaccounts, are moving into the sector.“The buy-to-let market is underpinned

by strong demand from renters,” says JaneIngram of Savills Lettings. “High pricesin the residential market, combined witha lack of mortgages, have created a largepool of tenants.”The statistics speak for themselves. Ten

years ago, the number of private rentedhouseholds stood at 2.5 million. Todaythat figure has soared to 4.8 million.Renters are also older, renting for longerand spending more of their hard-earnedmoney. According to research by Savills,a tenant now pays 31 per cent of theirsalary to rent a typical two bedroom home.The challenge for investors is how to earn

a healthy return.The average gross incomeyield is 5.8 per cent.But Savills believes thisfigure can be increased considerably.“If you want to attract a premium rent,

the first step is to look carefully at theproduct you are offering,” says Jane. “Forexample, you’ll need the right furniture toimpress a tenant. You might need to thinkabout added extras, such as a cleaner. If arental property is the best in class, then itwill earn the landlord a premium.”

bolster the rental market in Britain’s secondlargest city as it will be possible to commuteto the capital.However, experts are quick to sound

a note of warning to unwary speculators.“Buy-to-let is not about making a quickbuck, but playing a longer game, so thatyou can improve on the capital value ofyour investment,” says Theresa Wallaceof Savills Sevenoaks.When it comes to purchasing a property,

there are two options for investors lookingto cut costs and boost yields.They can buya property at under-market value andrenovate it to a high specification, or theycan purchase off-plan from a developer.“One of the best opportunities for an

off-plan investment is to try to secureyour purchase in the earliest phases of adevelopment launch,” explains Theresa.“You will often find that the first phase ofa development will be offered at the lowestvalues to encourage initial sales, but priceswill increase with subsequent phases.”With demand for rental properties

rising and tenants spending more of theirsalary on rent, there has never been a bettertime to be a landlord.

Crossing the VoidVoid periods, when properties are vacant during tenancies, can have a bigimpact on rental income. Here are three ways to keep them to a minimum

KEEP THE HOME FIRES BURNING: Evenwhen you have no tenant,make sure that theproperty is warm, clean and ready for anyoneto move in straight away. Hire furniture ifnecessary, as empty properties stay on themarket longer than furnished ones.

BE REALISTIC: Renting is seasonal. If yourtenant moves out in mid-winter, rather than thebusier spring or late summer months, you mayhave to accept a lower rent. It’s better to take anoffer that does not completely meet expectationsrather than leaving the property empty.

PRIORITISE MAINTENANCE:Don’t delay anyrepair work that needs to be done as this willput offmost prospective tenants. Also, tenantsusually have a preference for managed properties.It gives them confidence that any problemswill be dealt with swiftly.

Another smart move for investors is tolook outside of London. Although thecapital is often a focus for investors, risingproperty values have weakened rental yield.In fact, the UK’s top yielding postcodes

are mostly in the Midlands and northernEngland, in some cases delivering in excessof 7 per cent.“Urban centres, such as Manchester,

Leeds and Birmingham, attract largenumbers of professional, affluent tenants,as well as students attending university,”says Jane. “The downside for landlords,however, is that the properties they buyare likely to see lower capital growth thanin London.”It’s worth keeping your eye out for

specific areas that are likely to see growth.For example, the proposed new HS2 raillink between London and Birmingham –cutting down journeys between the twocities to just 49 minutes – is likely to

❝High prices inthe residential

market, combinedwith a lack of

mortgages, havecreated a large pool

of tenants.❞


Property and land are key assets for private investors. Four Savillsexperts reveal the best way to invest a £5 million windfall

GrowingINTEREST

Words Peter Buhlmann Illustration Jitesh Patel

Talking ShopJeremy LovellSavills UK InvestmentWHILE CONSUMERS’ retail habitsare evolving, driven by the internet, shop

investments still remain a favourite with privateinvestors. A buyer with £5 million has the chance tospread their risk by buying two or three properties.

My leaning would be towards prime freehold shopsin affluent south-east towns.The size and configurationof the retail outlet should match current occupationaldemand. Good covenants are vital, allowing theinvestor to sleep at night. I would recommend lookingfor leases with seven to eight years or more left. Thiswill carry the investor past the worst of the currentrecession before having to confront a lease renewal.I would also look for clean overriding leases on full

repairing and insuring terms, where the tenant takesresponsibility 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 perfectplatform upon which to enjoy future rental growth.Jeremy Lovell, Savills UK Investment+44 (0)20 7409 8745, [email protected]

Office LifeStephen DownSavills Central London InvestmentTHE PRIME office markets in centralLondon are the hunting ground of the

overseas super rich. As a result, £5 million won’t buymuch and yields are low.For those with an appetite fora little more yield and risk I would advise looking atalternative locations.Crossrail will undoubtedly lift property values

along its route and we recommend areas such asBloomsbury, Farringdon and Smithfield, which areattracting legal, media and technology SMEs. Wealso continue to like the South Bank and believe thecompletion of the Shard will assist values in a rapidlychanging location.Recently refurbished townhouses and multi-storey

Victorian industrial buildings remain popular withoccupiers in all these areas. Tenancies with an averagelease term of five to 10 years should yield 6-7 per cent,depending on lease length and location, compared with4 per cent in Mayfair and St James’s.Stephen Down, Savills Central London Investment+44 (0)20 7409 8001, [email protected]



A Store of Capital Ideas

❞

ChristopherMilesSavills Farm AgencyTHE CASE for investing in land reallyis compelling. Capital growth has been

higher than 150 per cent over the past six years andwe’re predicting another 30 per cent over the nextfive. It’s a finite resource, so in the long term it is afantastic performer and a great store of wealth.Investors should primarily be looking in the south

and east. A budget of £5 million might buy 500-600acres. Yields are typically 2-3 per cent, but returns canbe boosted through renewable energy schemes,conversion of buildings, leisure activities or even hittingthe jackpot by having land allocated for development.It may be a home as well as an investment and there aresome 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 tocities and attractive countryside may be more relevantto capital value. We are in an agricultural renaissanceand the cycle has only just begun.Christopher Miles, Savills Farm Agency+44 (0)1603 229 235, [email protected]

DavidWilliamsSavills National DevelopmentIWOULD invest £5 million in a multi-letindustrial estate within the M25.Although

multi-let investments require more management time,investing in different tenants and covenants spreads therisk.With varied lease terms one can gradually increasethe 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 occupiersdue to the constant need to service the capital. Thesupply of suitable sites has diminished as former shedsites have been put to alternative uses,such as residential.As a result, values have risen. At the same time we areseeing increased demand from occupiers for goodquality product in the right locations.It’s worth bearing in mind the impact of internet

shopping on the sector, which has led to competitiveoccupational demand from “e-tailers”, as well as parceldistributors who need to be located near the capital.David Williams, Savills National Development+44 (0)20 7409 8709, [email protected]


Sowing the Seeds



SCREENGRAB

Sherwood HouseDenham, Buckinghamshire

An exceptional family home set in magnificent mature grounds andgardens with a tennis court and large outdoor swimming pool

On the right trackThe 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 permonth

Claire Pincott, Savills Beaconsfield+44 (0)1494 731 960, [email protected]

Stylish livingA selection of the UK’s finest rental

properties, from elegant ruralretreats to sophisticated penthouses


50-51 Property Portfolio Investment V2 Savills Iss03.indd 5050-51 Property Portfolio Investment V2 Savills Iss03.indd 50 19/01/2013 03:5319/01/2013 03:53


| INVESTMENT POTENTIAL |

The Old RectorySwyncombe, Oxfordshire

Albion RiversideBattersea, London SW11

Arlington StreetLondon, SW1

London viewsA newly refurbished, contemporary-styleduplex penthouse overlooking Green Park,with two spectacular roof terraces andfar-reaching westerly views.With

hardwood floors throughout, it offersspacious open-plan living space and threeprincipal bedroom suites with additional

staff accommodation.The apartment is fullyair-conditioned,with lift and porter.Guide £10,000 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

Mark Tunstall, Savills Knightsbridge+44 (0)2o 7590 [email protected]

Stunning locationSet in beautiful rolling Oxfordshirecountryside this recently refurbished,spacious family home has stunningsurroundings with views over open

countryside.Within a 10-minute drive ofthe thriving market town of Henley-on-Thames, the M40 gives good access toLondon and the Midlands, and the busycity of Oxford is a 25-minute drive.Guide £5,950 per month

Key features• Five bedrooms• Four bathrooms

• Four reception rooms• Garden and terrace• Recently refurbished

• Stunning rural location• EPC Rating = C

Alison Bird, Savills Henley+44 (0)1494 843 [email protected]

On the riverThis outstanding four bedroom

modern penthouse of over 6,200 sq ftis located in a building designed by

world-renowned architects Foster andPartners. It has spectacular views ofChelsea Embankment and the RiverThames. On-site amenities includea residents’ gym, swimming pooland 24-hour concierge services.Guide £14,500 per week

Key features• Master bedroom with a fully fitteddouble 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

Gilly Hayden, Savills Mayfair+44 (0)20 7590 [email protected]

50-51 Property Portfolio Investment V3 Savills Iss03.indd 5150-51 Property Portfolio Investment V3 Savills Iss03.indd 51 22/01/2013 00:4022/01/2013 00:40

Marcus RobertsSavills Student Investment

and Development+44 (0)20 7016 [email protected]

Q.How do most individuals invest instudent accommodation?A. Often the first step is parents buyinga property, usually with more than onebedroom, while their child is at university.The additional rent helps to offset runningcosts. Once the child graduates, they cancontinue to rent out the property, whichmay gain in value.

Q.What should prospective investors lookfor when choosing a student property?A. Pick cities that have well-regardeduniversities and a large student population.London, Edinburgh or Newcastle aregood examples. Proximity to the universitycampus and good transport links arealso important.

Q.What should investors be aware of?A.The standard of student accommodationhas risen in recent years. Students are acustomer and, along with their parents,now have high expectations in terms ofservice and quality of accommodation.If acquiring a property, look at competing W

ords

:Lau

raLa

tham

| INVESTMENT POTENTIAL |

A deg ree ofDIFFERENCE

We ask Marcus Roberts of Savills Student Investment andDevelopment about the best ways to invest in student housing


Q.What about smaller investors?A.There are fractional schemes that allowinvestors to buy single rooms in a universityblock.These are often sold with guaranteedrental income for a period of time. Manyoverseas buyers are attracted to this option.

Q. How about investors who don’t wantthe risk of ownership in a single asset?A. There are investment funds, such asthose run by Crosslane or Brandeaux,which spread investment over variousaccommodation options. These usuallytake minimum stakes of around £20,000.Ideal if you don’t want to be a landlord.

Q.What returns can investors expect?A. Around 6-8 per cent net is the norm,but investors need to take account ofmaintenance costs and any utilities thetenants aren’t covering. Purpose-builtaccommodation can also offer 6-8 percent returns, but there are upfront coststo running a large scheme. Property fundsvary but typically offer annual returns of10-12 per cent gross.

schemes, planning and university growthas these may affect future occupancy.

Q.What are the options for those whoare wanting to invest on a large scale?A. Purpose-built student accommodationis proving popular with large-scaleinvestors. Typically these are blocks of 50to 1,000 rooms. They are usually laid outin a “cluster” format, which means thatthey have en suite bedrooms with sharedkitchen and dining areas.

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A WA LK IN THE PA RKChapte r 6

THE GREEN DIVIDENDThe parks of south-west London are sought-after by

overseas as well as domestic purchasers. In the past three years39 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.

53 A Walk in the Park V2 Savills Iss03.indd 5353 A Walk in the Park V2 Savills Iss03.indd 53 17/01/2013 09:3317/01/2013 09:33


| A WALK IN THE PARK |

We take a tour of historic Clarence House in Richmond and discoverwhy London’s parks are a growing attraction for overseas buyers

WordsDamon Syson

MA ST E R C L A S S

PARK LIFE

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B R I E F I N G

Clarence HouseRichmond

One of the area’s finest houses.The original William and Maryarchitecture has been updated tocreate an elegant modern home.




LONDON IS ALMOST defined by itsgreen spaces. Hyde Park and Regent’s Parkare just as famous as Big Ben and MadameTussauds.So it’s no wonder that buyers havealways been attracted to homes nearby.Now purchasers, including those from

overseas, are turning their attention tothe elegant parks of south-west London,creating new prime pockets in some of thecapital’s leafiest suburbs.“A couple of years ago overseas buyers

would have been looking for a centralLondon home,but now they are consideringthe suburbs,” says Lindsay Cuthill of SavillsSouth-West London. “Demand has risen inareas like Richmond, Barnes, Putney andWimbledon, especially for family homesclose to parks and commons.”It’s not difficult to see the attraction. As

well as owning a larger home than in centralLondon, owners get all the benefits of freshair and parkland, but only have a relativelyshort commute to work.For buyers who are looking for the perfect

house in the perfect location, ClarenceHouse in Richmond is difficult to beat.A beautifully renovated example of classicWilliam and Mary architecture, it boastsworld-class facilities and is just a short strollfrom 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 mediaroom, as well as an impressive modernextension that includes a gym and pool.“Adding this sort of above-ground

extension simply isn’t possible in centralLondon properties where outside space isoften very limited,” says Patrick Glynn-Jones of Savills Richmond.Overall, the house balances grand

entertaining space with well thought-outfamily accommodation. So along with theimpressive ground-floor drawing room,there is a family room with floor-to-ceilingwindows that brings the garden into theheart of the home.

“When it comes to space, you definitelyget more for your money in Richmond,”says Patrick.“You can get a much larger plotthan in central London and it’s not asdensely populated with houses, so you canbe a short walk from all the facilities ofRichmond town centre, yet still have anenormous garden.”Buyers at this level also expect to find the

latest technology and facilities. ClarenceHouse doesn’t disappoint. It comes fullyequipped with a Lutron audio-visualsystem, electronic security and even atemperature-controlled wine cellar withspace for more than 2,000 bottles.This is certainly an outstanding property.

But grand houses aren’t the only reason thatwealthy buyers are targeting London’sgreener enclaves.“It’s about a different sort of city living,”

explains Lindsay Cuthill. “It’s stylish andsophisticated, but it’s also very familyoriented. For example, these park areasusually have family-friendly restaurants,excellent outdoor amenities and, mostimportantly, really good schools.”A quick look at the schools shows how

popular the areas have become with overseasbuyers. Alongside many well-regarded localindependent schools, there is The GermanSchool in Petersham, The MarymountInternational School on Coombe Hill andThe Swedish School in Barnes.“People want to have the complete

package,” says Patrick. “Buyers are lookingfor a spacious family home, peaceful openspaces, excellent schools and an easycommute to work.The only place they canreally get that in the capital is around theparks of south-west London.”

TUNBRIDGE WELLS“Easy access to the outdoors is a key partof the appeal of Tunbridge Wells. It hasa London feel, yet right on your doorstepyou’ve got Tunbridge Wells Common,which is a huge expanse of attractiveparkland.The most desirable propertiesare located within 10 minutes’walk of thestation and 10 minutes from the common.These can go for anything from £1 million

to £3 million, sometimes more.”Robert Jacobs, Savills Tunbridge Wells

CLIFTON, BRISTOL“It’s the combination of a chic urban

setting and the local Downs – CliftonDowns and Durdham Downs – that makethis area so appealing to buyers.There areupmarket boutiques, gastropubs and cafés,yet you’ve got three or four golf coursesaround you and two significant areas of

parkland. As a result of this attractive mix,typical townhouses in the area range inprice from £850,000 to £2 million.”

Richard Brooks, Savills Clifton

The GreenDividend

Two park areas outside Londonthat attract a price premium

Lindsay Cuthill, Savills South-West London+44(0)20 7731 [email protected] Glynn-Jones, Savills Richmond+44 (0)20 8614 [email protected]

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MODERN ELEGANCEThe restoration of Clarence House has

created a stylish home that blends historicarchitecture with 21st century luxury.

Elegant bathrooms and reception rooms arecombined with eye-catching new elements.These include a wine vault, which can holdover 2,000 bottles, and a swimming pool ina modern extension overlooking the garden.


| PROPERTY PORTFOLIO |


2 Hamilton LodgeWindsor, Berkshire

A handsome, Grade II listed apartment

A Gothic masterpieceLocated near the town centre, this grand three bedroom apartment overlooks the LongWalk leading from the castleintoWindsor Great Park.High ceilings, arched detailing and wood panels create a unique interior. EPC Rating = D.

Guide £995,000

Jo Chadwick, Savills Windsor+44 (0)1753 834 600, [email protected]

Green and pleasantThese stylish family homes in

leafy suburbs provide a welcomeescape from busy city living


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A grand residenceA substantial, eight bedroom family house that offers

uninterrupted views across Clapham Common. It has a largedrawing room,while the fitted kitchen / breakfast room opens

on to the 67 ft garden.The adjacent three bedroomcoach 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 [email protected]

Stunning waterfront locationAn exceptionally elegant Grade II listed Georgian family

house, on the banks of the RiverThames, in a sought after westLondon 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 [email protected]

Slade HouseClapham Common South Side, SW4

Prospect HouseStrand on the Green, W4

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buyers to knock down an existing house to create onethat meets their exact requirements.These new homesare built to impress. “They will have a pair of ornamentalgates, a turning circle in front of the house with

a fountain, an impressive porchand a double-height entrance hall togive a sense of arrival,” says SimonAshwell of Savills Weybridge.

Going UndergroundAless radical approach,butonewhichcreates valuable space, is to constructa large, lower-ground extension for apool, gym and staff accommodation,which are now must-have features.

Owners choose this option because planning regulationsoften prevent expansion above ground to no more than30 per cent of the original footprint.Add the luxury of space to the unique list of privacy,

security and bespoke housing and it’s no wonder theseestates remain so sought-after.

BACK IN THE 1930, the rich and fashionableabandoned fusty old country houses to live in smartnew homes on estates in the Home Counties. Nowtoday’s high net worth buyers are rediscovering theseexclusive enclaves. As a result,prices are soaring. Private estates,such asWentworth and St George’sHill, offer space, privacy andsecurity. Even overseas buyers havediscovered the benefits of privateestates and are responsible fora significant number of sales. Thispopularity has driven prices up by20.1 per cent since 2007.

BEST OF BOTH WORLDS

Paul Finnegan, of Savills Country House Department,believes that location is a major part of the appeal.“St George’s Hill and Wentworth are within an hour

of London and close to airports, including Heathrowand Farnborough for private jets,” he says. “Add in thefact that there are 41 independent schools within easyreach and it’s easy to understand the appeal of the areato affluent buyers.”Although the estates arehome to someof the country’s

most desirable property, there is a growing trend forWords

:ChrisPartridge

Pr iv ateA FFA IR

Private estates, such as Wentworth and St George’s Hill,offer a unique combination of privacy and security



St George’s Hill andWentworth are withinan hour of Londonand close to airports,including Farnborough

for private jets.Paul Finnegan, Savills Director

Paul Finnegan, Savills Country House Department+44 (0)20 7409 8877, [email protected] Ashwell, Savills Weybridge+44 (0)1932 838 004, [email protected]

60 A walk in the Park V2 Savills Iss03.indd 6060 A walk in the Park V2 Savills Iss03.indd 60 17/01/2013 07:4817/01/2013 07:48

CONT INENTA L SHIFTChapte r 7

MAKING THE GREAT ESCAPEWhen it comes to owning a dream home overseas, the Southof France is the most popular choice, with properties here upto three times more expensive than other global destinations.

But tourism is also having an impact on inland Europe as buyerstarget income-generating properties in Alpine resorts.

Barometer onlineFor the latest insights into luxury overseas

property, please visit savills.co.uk/barometer

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| CONTINENTAL SHIFT |


THE COTE D’AZUR was one of thevery first playgrounds for the rich andthe fashionable. From Queen Victoriaand Tsar Alexander II to the Duke andDuchess of Cambridge, it has beena holiday destination for generations ofroyals who come to relax, socialise and soakup the sun. They’ve been joined by filmstars and discreet financiers who pack up

theirLouisVuitton suitcases every summerand head to the world’s most exclusivestretch 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 LeGrand Bleu. Completed a few years ago,it stands as a fine example of modernarchitecture on Cap Ferrat.

“It is an amazinghouse– there is nothingcomparable in the area,” says Jean-ClaudeCaputo of Savills French Riviera. “It isperfect for people who come to the Southof France for the summer and want toentertain during special events, such as theMonacoGrand Prix or the Yacht Show.”The house ticks a long and impressive

list of must-haves for high net worth

RIVIERADREAMING

We tour a unique property on the French Riviera andreveal why luxury and privacy are driving the market

Words Chris Partridge

!

MA ST E R C L A S S

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B R I E F I N G

Villa Le Grand BleuSt Jean Cap Ferrat

This state-of-the-art villa hasfive bedroom suites, a two bedroom

guest house, an infinity pooland landscaped gardens.




The western end of the Var coast iswhere a more sedate France meets theMediterranean. Unspoilt hills plunge

directly into the sea and villages retain theirFrench 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 Evansof Savills Network, Sheeran Serre. “It is anarea that is beautiful and very French.”

LIMITED SUPPLYThe landscape is now protected, limitingthe building of new homes.This means

property prices are stable, but bargains areto be had. “A three bedroom villa with a sea

view will cost about €800,000, while awaterside property can fetch €5 million,”

says Bill. “That is half the price of St Tropezand a quarter of the price of Cap Ferrat.”

FUTURE DEMANDThe extension of France’s famous

high-speed rail network to Nice will havea big impact on property prices right alongthe Var coast. It will eventually cut journeytimes from Paris to Nice to just under fourhours, making owning a home in the Southof France even more popular than it is today.

Coasting AlongA short distance from Cap Ferrat,

along the Var coast, are charming andless expensive holiday destinations

buyers. For a start, the location isextraordinary. The villa overlooks thefashionable town of St Jean Cap Ferratfrom a commanding hillside position.“The view is certainly impressive,” says

Jean-Claude.“But what is just as importantis the privacy of the hillside setting. Thevilla is secluded, but still within easywalking distance of all the town’s bars,restaurants and shops.”After location, buyers are most

concerned with space. This is somethingthat Villa LeGrand Bleu has in abundance.The rooms have high ceilings and theinterior 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 theirstay in the South of France. The villa hasimpressive reception rooms that are perfectfor parties. It also has a guesthouse and fivebedrooms in the main house.”A particularly dramatic feature is a glass

lift that seems to enlarge the view of thesea as you move up the building.For outside entertaining, the terraced

hillside gardens have been landscaped toprovide peaceful and relaxing spaces.Thereis also a natural pool, a waterfall and aninfinity pool that gives the illusion offloating in the Mediterranean.When it comes to technology, the villa

shows how the requirements of affluentbuyers have moved on. A decade ago, aluxury property like this would haveboasted visible gadgets and gizmos. Now,wireless technology is at the heart of thehome. Owners want seamless connectionfor every device – smartphone, tablet andlaptop. Naturally, Villa Le Grand Bleu haswireless internet available throughout theproperty.Even so, there is one status gadgetthat hasn’t changed, except to get bigger.The media room has a suitably large TVscreen with a sound system that delivers amovie-house experience.

An added attraction for many buyerswill be the fact that the villa is a relativelynew property already configured formodern living. In an area that is so welldeveloped, with a landscape that is alsohighly protected, new homes are very rare.“Finding outstanding modern architecturein this location is almost impossible,” saysJean-Claude. “It marks out the villa froman already very select list of properties.”The very top end of the Riviera property

market remains strong. The area is one ofthe honeypot locations for the world’ssuper-rich, attracted by easy transport,a vibrant cultural life, including the CannesFilm Festival, and the casinos in Monaco.These attractions elevate the Riviera to

a select group of locations where propertyprices are dominated, not by the localeconomy, but by demand from investorsand second-homeowners round the world.It’s an élite club that includes prime centralLondon,Manhattan and the Hamptons.“Riviera prices are among the highest

in the world,” says Jean-Claude. “But theycontinue to rise, protected by the restrictedsupply and continuing high demand. Asa result, rents are also very high, so if youbuy a villa or apartment as an investment,you can rent it out for four months a yearand gain enough to cover your costs andstill enjoy it for holidays.”Many international investors are buying

on the Riviera simply for security. France isa mature economy and the Riviera is a safehaven for funds.But people do not buy second homes at

Cap Ferrat for dreary investment purposes.They buy them to enjoy the culture, lifestyleand glorious light.Life on the Riviera is forliving, and there’s nowhere better to do itthan Villa Le Grand Bleu.

Jean-Claude CaputoSavills French Riviera+33 (0)607 933 [email protected]



PEAKper formanceChalet owners are taking a fresh look at the Alpsand finding ways to double their rental income

Words Claire Coleman

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IT’S ONEOF the world’s most beautifulwinter views: the brilliant white snow ofthe Alps under a bright blue sky. But nowproperty owners are taking a new look atthe region and discovering it’s not allabout ski lifts and schnapps.“For many British buyers, a chalet in the

Alps has been about one thing – skiing,”says Charles Weston-Baker of SavillsInternational. “They use the chalet asmuch as they can during the season andrent it out for the rest of the winter. Butthis overlooks a valuable rental sector –summer visitors.”

SEASONAL CHANGEThe Alps have become a popular summerdestination. Festivals draw in culturaltourists, alongside visitors looking foractivity holidays based around walkingand mountain biking.“Dual season rental opportunities

represent increased potential income andthe possibility of a lifestyle purchase beingable to pay for itself,” says Charles.But overseas purchasers need to act

quickly if they want to enjoy the primemountain areas of Switzerland.

“The Swiss Government has recentlyintroduced the Weber initiative, whichplaces a 20 per cent limit on secondhomes,” explains Charles. “If this quota isalready exceeded, as is the case with manySwiss mountain resorts, existing secondhomes can still be sold, but there will berestrictions on new developments.”The good news is that developments

already under way are not affected. Some,such as Mer de Glace in Nendaz, aresuprisingly affordable, with prices startingat CHF695,000.Of course, Switzerland isn’t the only

option. If you are one of the potentialbuyers hesitant about committing toFrance because of uncertainty over thenew president’s planned tax rises, expertssuggest taking a look at Austria.“We’re seeing high demand in Austria,”

says Jeremy Rollason of Savills AlpineHomes. “It’s certainly more affordable.Here you can pick up a two to threebedroom property for around €300,000with a guaranteed rental return. This isreally appealing, especially for people onlower budgets who want the peace ofmind of knowing there’s a rental

management system in operation that canhelp to pay off the mortgage.”Whichever country you choose to buy

in, the old adage of location, location,location holds true, with resorts withintwo hours of an airport being the mostpopular. Even so, the most in-demandproperties aren’t necessarily located rightin the centre of town.

THEWIDERVIEW“While proximity to ski lifts, walkingand bike trails is desirable for winter andsummer visitors, it’s not always essential,”says Jeremy. “In Verbier, some of the mostexpensive properties are 10 to 15 minutes’drive from the centre. What these chaletsoffer in return are spectacular mountianviews and complete privacy.”Which only goes to show that whatever

the time of year, and whatever the locationof the chalet, it’s the scenery that peopleare really paying for.

by the numbers63% of overseas homes

are let for up to 16 weeks a year

One-thirdof owners surveyed by Savills said rentalincome entirely covered their costs

47% of ownersanticipate continuing to let theirproperty rather than selling it

Two-thirdsof holiday homes generate up

to £10,000 in gross annual income

CharlesWeston-Baker, Savills International+44 (0)20 7016 3741, [email protected], Savills AlpineHomes+44(0)2070163753,[email protected]

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| PROPERTY PORTFOLIO |


Macquarie StreetSydney, New South Wales

An impressive three bedroom apartment overlooking Sydney Harbour

Unrivalled locationThis 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 $6million

Shayne Harris, Savills Sydney+61 (0)2 8215 8879, [email protected]

Simply breathtakingThese exquisite properties arelocated in some of the world’s

most idyllic locations


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OrtagliaPratolino, Tuscany

Le Manoir deBeaulieu

Western Cape, South Africa

Exclusive developmentLaguna Lăng Cô, the first fully integratedworld-class hospitality development inVietnam, is the region’s finest holiday

destination and includes Banyan Tree andAngsana hotels and resorts, award-

winning spas and a championship golfcourse, alongside Banyan Tree and

Angsana Residences offering panoramicsea views in an unrivalled location.

From $295,000 /280 hectares

Key features• 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

Guy Major, Savills Vietnam+84 (0)9 1391 [email protected]

Villa with a vineyardThis beautiful hillside estate is 20 minutesfrom the centre of Florence. It consistsof an 18th century, six bedroom villa,

with ornate marble floors and fireplaces,which is surrounded by a large formalgarden.There is also a seven bedroomguest lodge, as well as a vineyard that

has its very own three bedroomrenovated stone farmhouse.Guide €12.9 million

Key features• Two swimming pools

• Wine cellar• 34 hectares of land

• 720-tree olive orchard• Unrenovated farmhouse

with seven hectares is for saleby separate negotiation

Jelena Cvjetkovic, Savills International+44 (0)20 7016 [email protected]

Winelands estateThis spacious Provençal-style home hasbeen built with great attention to detailand high quality finishes throughout. It islocated within a secure estate and has

dramatic views of the mountains and thefamous Taal monument.The main houseoffers three en suite bedrooms and forvisitors there is a spacious, two bedroom

annexe with a separate entrance.Guide R10.6 million

Key features• Courtyard entrance with fountain• Entrance hall with glass staircase

• Master bedroom suite withtwo en suite dressing rooms

• Four bathrooms• Infinity edged length pool• Five garages, four off street

Lynette Schoeman+27 (0)21 871 1480

[email protected]

ăLaguna Lang CôCentral Vietnam

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Globa lSTARS

Rupert Seabag-Montefiore of Savills Global Residentialhighlights key overseas locations for smart investors


The Monaco GapIn the luxury holiday homes market there are far moreshoppers than buyers. Buyers say vendors are askingunrealistically high prices, while vendors say buyers areoffering unrealistically low prices.This pricing differencehas been called the Monaco Gap. Even so, opportunitiesdo exist where the seller acknowledges prices have fallensince the peak.

Spanish Gold?Property values have fallen by 30-70 per cent in Spain.This means prices are starting to look interesting forbold investors, but they should only look in areas that

haven’t been over-developed. Toquote the words of Warren Buffett,“When people are greedy, be fearful.When people are fearful, be greedy.”

Keys to FloridaPrices have been slashed and, insome locations, you have been ableto buy at not much more than thecost of building – so the land comesfree. Some Brits now see the Floridamarket as an alternative to Spain,thanks to a more stable US economyand a lower currency risk.

THE GLOBAL DIRECTION of investment is nowvery much from cash-rich new world countries in theeast to established old world cities in the west. Thestandout favoured locations are London, followed byFrance and the US. But there are other locations thatare well placed to deliver capital growth, from businesscentres to leisure destinations.

New York BounceRight now, New York looks like a good investment.Priceshavefallenby17percentsince2008andthemarketis now recovering fast. A few years ago, 3-4 per cent ofbuyers were from overseas,but today that figure is nearer20 per cent. Investors are targetingnew condominium blocks ratherthan traditional co-op buildingswhere buyers require the approvalof existing owners.

Paris PausesSince 2008 the prime market hasgone up by 55 per cent, more thanmatching London, albeit from a lowbase.Paris has a romantic appeal likeno other city, but the market is nowstuttering as a result of uncertaintyin the Eurozone. W

ords

:Christoph

erMiddletonRupert Sebag-Montefiore

Savills Global Residential+44 (0)20 7409 [email protected]


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“With over 20,000 people and500 offices and associates worldwide,including our new UK headquarters incentral London opening in June, Savillsis perfectly located to help you makethe most of the opportunities in theproperty 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

TheDIRECTORY

SAVILLS INTERNATIONALNETWORK ENSURES THAT

WE ARE AT THE HEART OF THEGLOBAL PROPERTY MARKET

Pho

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71-73 Directory Savills Iss03.indd 7171-73 Directory Savills Iss03.indd 71 16/01/2013 01:3316/01/2013 01:33

Head Office20 Grosvenor Hill,LondonW1J 3HQ+44 (0)20 7499 8644

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ResidentialservicesThe leading name inthe UK residentialmarket, Savills setsthe standard in thesale, purchase andletting of property.

Justin Marking,Head of ResidentialAgency (UK)Lansdowne House,Berkeley Square,London W1J 6ER+44 (0)20 7499 8644

LondonJonathan Hewlett+44 (0)20 7730 0822

Country Housesand EstatesCrispin Holborow+44 (0)20 7016 3780

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Through our advice, ourproperty managementcapabilities and thetransactional serviceswe provide, we helpour clients to fulfiltheir real estate needs –whatever and whereverthey are.

CommercialPropertyMark Ridley+44 (0)20 7499 8644

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ValuationsAnthony Griffiths(residential)+44 (0)20 7499 8644

Savills InteriorServicesSimon Buhl Davis+44 (0)20 7730 0822

SPF PrivateClientsMark Harris+44 (0)870 900 7762

ResearchYolande Barnes/Lucian Cook+44 (0)20 7499 8644

Other services

LONDON

COUNTRY

| THE DIRECTORY |

Savillsservices

SavillsUK offices

We sell everykind of property,from elegant

town houses andluxury holidayhomes to

magnificentcountry estates.

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GLOBALNETWORK

We have offices and associatesin over 45 countries across theAmericas, Europe, Asia Pacific,Africa and the Middle East.This international network

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71-73 Directory V2 Savills Iss03.indd 7371-73 Directory V2 Savills Iss03.indd 73 17/01/2013 08:4817/01/2013 08:48


| MARKET INSIGHT |

Comm

uter Tow

ns Equity ReleaseInvestm

entOppo

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theLondonMar

ket

Lucian Cook of Savills Research reveals fourtrends that will shape the property market in 2013

ThePROPERTY

forecast

Rise of theUber Towns

A Pausefor Breath

The LandlordDividend

The MoneyMovers

IN THE PAST four yearsaverage price growth in theprime London markets hasbeen staggering. Since thebottom of the market in 2008,prices have risen by 46 per cent.In 2013 we expect that rate ofgrowth to slow as the marketabsorbs a greater tax burden.However, London’s popularityas a place to live, work andstore wealth will continue toattract overseas buyers, who arewidening their ownership intoareas beyond the traditionalenclaves of Mayfair, Belgraviaand Knightsbridge. The newdevelopments on the fringes ofcentral London and establishedfamily markets, such as Fulham,are already focal points.

CURRENTLY, 22 per centof London sellers in the£1 million-plus market aredoing so to release equity intheir homes. Over the next fiveyears we expect this to increaseas older generations free uptheir wealth in order to assistyounger generations to get onto, or move up, the housingladder. Over that period weexpect the amount of equityunlocked to rise from £7 billionto £14 billion. Our analysis ofdemographic and house pricedata suggests locations such asthe Surrey Hills, Chichester,the Cotswolds, the New Forestand Stratford-upon-Avon willbenefit from older movers usingequity from London property.

THE STRETCHING of theprice elastic between Londonand the rest of the country islikely to provide opportunitiesfor buyers looking to move outof the capital in 2013. Primeproperty prices in London aresome 24 per cent above theirpeak prior to the credit crunch,but prime regional markets arestill 10 per cent below. Whilethe ripple effect out of Londonis likely to be gradual, we wouldexpect markets in commutabletowns that have good schoolsand quality housing stock –such as St Albans, Beaconsfield,Guildford and Sevenoaks – tobenefit from an increasedoutflow of wealth from Londonthis year.

THE 2011 CENSUS hasconfirmed the extent of thegrowth in private renting overthe past 10 years,predominantlyas home ownership has becomefar less accessible to youngergenerations. Over that period,the number of households inprivate rented accommodationin England and Wales has risenfrom 2.6 million to 4.2 million.In the wealthiest locations inthe south-east, our analysissuggests asking rents for threebedroom properties have risenby 12.8 per cent over the pasttwo years. This year, we expectthat the mainstream and primerental markets will continue togrow, providing opportunitiesfor investors.

torent

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| FOREIGN AFFAIRS |

- 12 -savills.co.uk

Property Misdescriptions Act: Savills recommends that applicants discuss theirinterest in a property with the negotiator who can answer more specific questionsand advise if it is under offer.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 useand occupation, and other details are given without responsibility, and any intendingpurchasers 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.Specific advice relating to your individual circumstances should be obtained.

Please recycle this magazine after use.

75 IBC Savills Iss03.indd 7575 IBC Savills Iss03.indd 75 16/01/2013 01:0016/01/2013 01:00

76 OBC V3 Savills Iss03.indd 7676 OBC V3 Savills Iss03.indd 76 21/01/2013 12:3021/01/2013 12:30

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