residentialsales
believes the Suffolk coast’s proximity to Morrison, at Knight Frank, Exeter, says the
London has helped underpin prices – both market has turned decidedly for the better
commuters and weekenders are interested in the last four to six weeks, though
in properties in the area. East Anglia has “having said that,” he admits, “it couldn’t
outperformed the South West in terms of have got much worse.”
prices and has, perhaps, a more thriving Tim Winney, Winkworth’s franchisee in
local economy, keeping up demand for Highcliffe, Dorset, believes low interest
main residences. rates on savings have made individuals
The most interesting changes, though, look again at property as an investment.
are within individual markets, which “A lot of it is to do with the fact that people
appear to have become increasingly
If you turn the tap off
now see property as one of the safe havens
polarised between prime and secondary for their money – a vehicle to return a
property. Savills research shows the price
in terms of buyers,
reasonable yield with the potential for long
of prime second homes falling by only term capital growth,” he says. He also
11.85 per cent against the bottom quartile
that’s going to have a
believes that buyers who were intending to
falling by over 25 per cent.
severe impact.
retire or migrate to the area are shifting
Lucian Cook says that’s the case for their timetables, buying a second home
all property markets – the best properties Areas that were now to take advantage of low prices and
are outperforming those in less attractive low interest rates before moving
locations or less than prime condition -
mainly driven by City
permanently in several years’ time.
but, he says, “that’s exacerbated when it
bonuses have suffered
He’s having a busy year, which he puts
comes to second homes.” Buyers of second down partly to the way developments such
homes are very selective, looking for a
badly – for instance
as the new Gary Rhodes restaurant in
‘dream home’ - because ultimately it is a Christchurch, and the £8m makeover of
discretionary purchase, so if it’s not around Exeter.’ the Christchurch Harbour Hotel, have put
perfect, they can walk away. “Meanwhile, the area on the map. Second homes in the
the compromise home is the first one,
LUCIEN COOK, SAVILLS
area are selling well right now – he had a
which seems odd.” £1.6m house at Friars Cliff which was only
Lucian Cook adds, “I’m not at all cent.” The least affected areas are those on on the market six weeks, before being
surprised the figures are showing us this the coast, such as Brancaster and the acquired as a second home. Prices, he says,
right now, because if a market’s going to Burnhams; inland, pricing’s been weaker. have dipped less than the market at large –
become polarised, it will do it in a Looking across the country, the level of by only 5-10 per cent – due to the
downturn, because you have such a thin transactions has been very low for a while, attractions of the area.
pool of buyers.” but the markets seem to have picked up in Elsewhere, business has not been so
Tim Hayward, partner at Jackson-Stops March and April this year. William good. William Morrison says that while
and Staff, says he has noticed this Salcombe has done better than other areas,
polarisation in the North Norfolk market.
Higher Barton, Devon
in the South-West as a whole, “we have
“Highly individual properties on the coast, seen a drop of 20-30 per cent on average
the sort you have to buy when you see Knight Frank offer a beautiful threshing from the top of the market.”
them as they don’t come up that often, will barn, completely remodelled, in glorious So, who is buying? Though there are no
still fetch a premium. But other properties countryside one mile from Dartmoor, statistics to prove it, the second homes
across the board have fallen 10-30 per just £895,000 market appears to be a market with a high
percentage of cash buyers or purchasers
£895,000 with significant proportions of equity.
Tim Hayward says, “It’s very largely a cash
market, anywhere from £200,000 up to a
million – there are people with that sort of
money.” He believes many purchasers are
taking money out of interest bearing bank
accounts, to increase their investment
return. For instance, he is currently selling
one property that the purchasers will put
into their children’s name, obviously
intended as an investment.
The mix of buyers hasn’t changed.
Overseas buyers may have made an impact
on the Central London market, and on
large country properties, but they don’t
seem to be affecting the second home
market much. William Morrison says “The
mix of buyers we see hasn’t changed; the
PrOPertYdrum JULY-AUGUST 2009 35
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