There was a marked increase in buyers flocking to the country house market in January, while the London market continues to soar, according to Strutt & Parker.
Buyers in both markets are being increasingly tempted by new-builds.
The strong start in buyer interest in country houses contrasts with a shortage of supply, around 130 delegates heard at the firm’s Rural Land Briefing in London on Friday.
James Mackenzie, head of the country house department, said: “In January we saw a 25% increase in international buyers and a 40% increase in London buyers coming to the country house market, so hopefully things are going to improve.
“Stamp Duty has affected the market but demand is up and supply is still very slow. Perhaps we are about to see an upsurge in the age-old tradition of moving to the country. I think 2013 might well prove to be as good a year as any.”
Mackenzie added: “However, some traditions are changing. Maintenance and running costs are now far more important and we are now seeing far more sales of new-builds which have lower costs.”
Conference delegates also heard that the number of £5m-plus houses sold in prime central London went up 16% last year compared to 2011, and up 30% on 2007 before the economic crisis hit.
London agent Lulu Egerton, pictured, said the London market had seen an “astonishing turnaround” in the last eight years. She described 2012 as a phenomenal year despite the blip caused by the Stamp Duty announcement and concerns over Mansion Tax.
She said: “The supply and demand squeeze puts extraordinary pressure on the London market.”
She said that the biggest change in the 28 years she has been selling properties is in new developments in London.
She said De Vere Gardens, to be launched by Strutt & Parker in July, was a case in point. “There are 97 apartments ranging from £3m to £50m. We could have sold them several times over already. This will be a very exciting development.”
The properties are at the end of Kensington High Street where the Thistle hotel stood near Olympia exhibition centre.
Strutt & Parker was last week one of the agents instructed to assist in the redevelopment of the former BBC centre at White City, where there will be 1,000 apartments selling at around £1,000 per sq foot.
Egerton said: “As the supply and demand squeeze continues, we will continue to achieve good prices.”
* Last month, the Buying Solution, Knight Frank’s property search arm, said there is a shortage of top-end residential property on the market in the South-East.
It said the lack was ‘disappointing’, with little to offer wealthy purchasers who have budgets of between £2m and £20m.
Mark Lawson, partner and head of the home counties team, said: “The quality of what’s available to purchase is disappointing.
“A lot has been lingering on the market for several months or is still overpriced, and to date, there appears to be little new property likely to come on to the market.”
Comments
This from the firm who are at present are shutting their Glasgow office and believe the market will recover in 7 years!