September 2024 | Property Market Update | Buying Agents | Black Brick (black-brick.com)
Positive Signs For The Autumn Market
House hunters have taken heart from Labour’s resounding election victory, with property portal Rightmove reporting an immediate increase in interest from buyers and sellers in the mainstream market.
Prime Central London (PCL) also enjoyed a mini bounce, according to house price analyst LonRes, with transaction levels up almost nine per cent compared to last year, and the number of properties going under offer jumping by almost 24 per cent year on year.
While buyers have been busy, the increased activity levels have not so for resulted in any price growth in PCL, with prices currently down some five per cent year on year. This is not great news for vendors, but does mean buyers can expect some bang for their buck.
The next hurdle for the market to overcome will be October’s budget. Prime Minister Keir Starmer is already warning Britons to brace themselves for short term pain – likely to be felt in the form of tax hikes and service cuts.
These changes will not, of course, impact on prime buyers’ ability to purchase. More pertinent to them, said Camilla Dell, managing partner of Black Brick, are issues like the dismantling of the Non Dom system, Capital Gains Tax, Stamp Duty surcharges for overseas buyers, and Inheritance Tax.
“We are certainly busy – we had a record number of enquiries over the Bank Holiday weekend,” she said. “But at the same time I do think there are definitely some clients who are waiting for the budget, so they can see exactly what the changes look like.”
Estate agent Knight Frank has announced that it is reserving the right to revise its UK house price forecasts – the firm is currently predicting two per cent growth across London during 2024 and a one per cent drop for PCL (followed by four years of positive price growth) – until it has scrutinised the small print.
Dell’s hope is that Starmer puts forward a property investment-friendly budget, in order to stimulate this lucrative economic sector. “I hope that it is relatively benign,” she said. “I think that this is a key moment for the market.”
The Americans Are Coming
A major bright spot in London’s property market is our transatlantic cousins’ enduring love for the British capital.
Last year 40 per cent of all properties valued at $15m or more went to American buyers, from tech entrepreneurs, to second home buyers, corporate executives, and young families, according to research by UK Sotheby’s International Realty.
These buyers, found the firm, are charmed by London’s historic property stock, and the neighbourhoods they favour include Notting Hill, Holland Park, St James’s, Belgravia, and Knightsbridge.
At Black Brick, 20% of our clients purchasing luxury London homes this year have been from the US, mostly from the West Coast. The main factors are the prevalence of gun crime in the US, superior infrastructure in London and the explosion of wealth in the tech sector that is prompting the rich to buy foreign assets.
“For many of our US clients, they see London as a safe haven compared to the US, where anyone can own a gun,” Dell said. “There has also been an explosion of wealth in the tech sector in the US. When people get wealthy, they buy assets, and London is a key recipient of that.”
Another factor is that although sterling has been strengthening, exchange rates remain appealing to dollar buyers.
“I have just worked with some American clients,” said Tom Kain, partner at Black Brick. “They have got three young children, and they are considering living over here for a year just so that they can have the experience of living overseas and being in London. Americans really are a key client base.
Dorset Takes Centre Stage
When house buyers dream of a home in the West Country they tend to imagine a seaside home in Cornwall or Devon. But the West Country’s most copper-bottomed investment could be a little closer to home. An annual league table of the most expensive coastal locations in Britain, by Rightmove, places two Dorset hotspots in first and second places.
The average cost of a home in glitzy Sandbanks, an exclusive half mile of sandy beaches some 110 miles south west of Central London, stands at almost £1.6m.
Next on the list is Canford Cliffs, less than two miles from Sandbanks. The average price of a home in this genteel and affluent suburb, perfect for bucket and spade family holidays and for sailing and exploring the Jurassic Coast and the New Forest, stands at just over £1.2m.
Part of Dorset’s appeal, beyond its natural beauty, is that it is an easier commute to London for weekenders. And its sailing reputation is almost unparalleled.
“These are two very small areas and the owners tend to be high net worth individuals who have done very well financially in recent years and will not sell unless they get the right price,” explained Rupert Stephenson of Black Brick’s Country & Coast Department. “Other parts of the west country perhaps got a bit overblown during Covid, but this part of Dorset was just not affected in that way. These are mostly very large houses which are owned by people who have thrived in recent years.”
There are currently only around ten houses for sale on the open market in Sandbanks with, inevitably, a few more being discreetly sold off market. In Canford Cliffs there are just a few dozen houses on offer. And it is this scarcity, said Stephenson, which insulates these two south coast enclaves, from the ups and downs of the property market at large.
If you are considering making a purchase in Devon, Dorset or Somerset please contact Rupert Stephenson [email protected] or on +44 (0) 7768 365 853.
If you are considering making a purchase in Cornwall, please contact Anna Sharp –[email protected] or on +44 (0) 7415 614 041.
The Sun Shines On Marbella
This timeless Costa del Sol hotspot is enjoying strong price growth right now thanks to keen interest from international buyers from Europe and beyond.
Black Brick understands that buyers need support when navigating a new property market, especially in a foreign language, and so we have partnered with leading Spanish buying agent Nueva Vida Group to help clients looking to grow their property portfolio in this booming location which is just a two hour flight from London.
Camilla Dell, Managing Partner at Black Brick comments, “I am delighted that we have partnered with Jack and his team Nueva Vida. They share our commitment to representing buyers on what is often a very significant financial transaction. They also provide a complete service, including looking after clients’ homes post purchase, which mirrors the way we service and look after our clients here in the UK.”
Jack Ballantine, Director and Co-Founder of Nueva Vida comments, “Marbella is an extremely popular destination for British clients and the international HNW Community. It’s a privilege to be the recommended partner in Marbella and Sotogrande by Camilla and Black Brick. We’re looking forward to working with them and their clients to help them navigate the nuances of the market in southern Spain and most importantly match them to the finest luxury homes.”
Independent data suggests that Marbella’s market is outperforming much of the rest of Europe.
Knight Frank reports that both sales volumes and international buyer numbers are up in the vibrant coastal town which has attracted generations of buyers with its combination of sandy beaches, sports, luxury villas, and glamorous beach clubs.
And average real estate prices in Marbella are up by ten per cent year on year, to €261 per square foot, according to property valuation specialist Grupo Tinsa. Property classified as holiday homes trade at an average €372 per square foot, found the firm, although at the top end of the market the sky is almost the limit.
You could spend as much as €50m on a super glamorous villa on Marbella’s upscale Golden Mile of homes by the beach.
Marbella is a market driven by international buyers, notably from the UK and Scandinavia, as well as those travelling from North America and the Middle East, who appreciate its lifestyle and its global transport links.
Malaga Airport already has direct flights to most European destinations and New York. Direct flights from Dubai are expected to start next year.
And while Spain has closed the doors on its popular Golden Visa scheme, which allowed residency in return for property investment, there are still several tax incentives in play.
Beckham Law, for example, was introduced when David Beckham moved to Real Madrid, and allows foreigners to pay taxes on Spanish-sourced income at a flat rate of 24 per cent. Most worldwide income is not taxed (in Spain) at all.
Ballantine said international buyers tend to gravitate to three core areas: “There is Nueva Andalucia, also known as the Golf Valley because of its proximity to Las Brisas, Aloha and Los Naranjos golf clubs, Sierra Blanca, a private gated community in the hills above Marbella, and the Golden Mile.” Villas in these areas start from around €3.5m.
To find out more about how Black Brick can assist you with an international property purchase please click here.
Acquisition Of The Month 1: Lennox Gardens Mews, Knightsbridge, SW1X – £3,750,000
Our clients hail from California, but visit London regularly for work and holidays and wanted to find a permanent base. They also wanted to be within walking distance of Sloane Square, and needed plenty of space since they have three children. We were able to source a highly desirable freehold house on a pretty, cobbled mews, with more than 2,000 sq ft of living space, and private parking. We then went on to negotiate a great deal, paying around £1,700 per sq ft in an area where property regularly sells for more than £2,000 per sq ft.
Acquisition Of The Month 2: Epple Road, Fulham, SW6 -£1,550,000
Our professional London based clients wanted a three bedroom house close to Parsons Green station in West London. Their maximum budget was £1,750,000, and freehold homes in the sub-£2m market are in hot demand in this area. We conducted a targeted search of the key roads in Parsons Green and knew it would be crucial to be the first to view properties. The most desirable homes in this market sell fast and attract multiple bids. To navigate this difficult market we identified a house in need of renovation and introduced our clients to a top team of builders who provided detailed cost estimates. Our clients were enthusiastic about the idea of creating their ideal home in their chosen location without having to pay a premium for someone else’s design choices. With our clients approval we moved fast, making a compelling offer, which worked out at a competitive £882 per square foot, and progressed quickly to completion.
Featured Photo by Jay Wennington on Unsplash.
