Country Houses: Active market, active politics
London: Investing in the capital
New Homes: Is there a definitive style for our time?
WATER FLOWING UPMARKET
High end demand breathing new life into waterside plots
RESEARCH
Water flowing upmarket
The latest Jackson-Stops annual Waterside Review shows high end demand is, in effect, creating new waterside plots.
Our latest review of the market for properties attractively close to lakes, rivers and the sea, has reasserted the tremendous premium that a good waterside property can command (96% in the case of Brighton seafront houses) and the growing appreciation of estuary locations, which are often more protected and interesting. It has also highlighted how some areas, such as the north Norfolk coast, are so defined by the sea, that the ‘coastal premium’ extends far inland.
Much the same could be said of the leafier parts of the Ribble Valley in Lancashire. There, the river and its tributaries cast such a spell across the valley as a whole that a waterside house within it, can be three times the price of one beyond its charms. In comparison to these established patterns, one recent trend has really stood out this year: the value of large and luxurious waterside homes has risen to the point at which plots and restoration projects previously seen as uneconomic, have become viable.
Front cover: Cornwall
£1,925,000 guide (Cornwall)
Right: Northamptonshire
£2,900,000 guide (Northampton)
UK MARKET REVIEW NUMBER 54
Published by Jackson-Stops since 1997, the UK Market Review is a concise overview, drawn from insights and data from some 40 offices across the London and Country House markets, plus national statistics.
Above: Norfolk £2,700,000 (plot) guide (Burnham Market) Situated within a historic walled garden in the coastal village of Burnham Market, this site has planning permission for a Georgian style, 5,300 sq ft house.
(Computer Generated Image)
Coastal sites previously written-off as requiring prohibitively expensive groundworks, are being developed. Difficult, sometimes Listed buildings are being given a new lease of life and there is a much more active market for collections of buildings which work best under single ownership and operation.
For example, the former Northamptonshire mill shown on the previous page, is set in 20 acres and has over 11,000 sq ft
of accommodation spread across four buildings, all now immaculately renovated and equipped. As well as obvious ‘wow’ factor and lots of space, both of which high end buyers enjoy, it also offers a degree of flexibility which they welcome, be that for multi-generational families, entertaining, hybrid working or, with relevant permissions, commercial uses.
Away from riverbanks and the sea front, a waterside setting can also, with enough
£3,650,000 guide (Chelmsford)
Left: Dorset
£1,850,000 guide (Bridport & Dorchester)
Above: Essex
Below: West Sussex £5,000,000 guide (Chichester)
investment, be created. Nestled in a wooded valley less than a mile from the Atlantic, the Cornish house shown on the front cover clearly benefits from its coastal location. What catapults it into the top league, though, is the stylish combination of house and spring-fed ponds, including a freshwater swimming pool. They make this a true waterside property and exemplify why such houses command the premium, that they do.
Upmarket demand is thus prompting owners of development land with a healthy natural water supply, to consider if it might be the key to much higher value, and owners who had seen their waterside land or property as having no development potential at all, to realise that the opposite might be true. In effect, and contrary to Mark Twain’s famous dictum, the high end demand for glamorous waterside homes is, almost literally, making more land.
Right: Suffolk from £395,000 (Ipswich)
LONDON MARKET COMMENT
Investing in the capital
The London property market continues to show record levels of activity.
The first half of the year has seen a very active market as London continues to attract buyers and landlords looking for a safe place to invest. The number of people looking through us for their next home is increasing yearly; in London alone, we arrange over 2,000 viewings per month. We have offices in desirable areas such as Mayfair and Pimlico in prime central London and Teddington, Wimbledon, and Weybridge in the leafy suburbs. Alongside the country offices,
the Jackson-Stops network allows us to support and advise our clients and customers, no matter their requirements. This is why we are the first choice for those looking to move or invest in the capital.
Our teams' experience, local knowledge, and service standards are vital to our success, which is why over two-thirds of our new business comes from word-ofmouth recommendations. This is evident by the increase in new instructions across our
guide
Above: Pimlico £2,850,000
(Pimlico & Westminster)
£1,200,000 guide (Teddington)
Below: Oxshott
£9,250 pm
(£2,135 pw) (Weybridge)
London network, which is up by an average of 43% compared to last year.
The demand for rental homes in London is at record levels, with more tenants opting for long-term tenancies. Our Corporate Lettings and International Relocation team receives hundreds of weekly enquiries from large-scale corporations looking to relocate their staff, providing our landlords access to top-quality professional tenants.
London, being an iconic city, attracts enquiries from all over the world. With a lack of supply, London needs more landlords than ever before, especially with over 70% of tenants choosing to renew their tenancies, meaning less property is coming back to the market. The appetite for
well-priced, good-quality property has also driven a steady price increase.
Providing the very best service to our clients and customers is an important part of what we do. Our landlords and tenants are supported by our proactive Property Management teams, who are only 15 minutes away from any property in their portfolio should an issue arise. Our proactive approach builds rapport with the tenant and keeps arrears to a minimum of less than 1%.
There are considerable benefits to using an experienced agent. A typical Jackson-Stops client is a busy professional who relies on the advice of their trusted local expert to make their move happen. We achieve this by offering a
Right: Hampton Hill
bespoke service, whether the customer or client is moving within London or looking nationally. Our clients understand that London is a brilliant place to invest, and we’re here to support them on their property journey with
local knowledge and expert advice. We expect that demand will remain strong for the foreseeable future as buyers and tenants continue to flock to the capital and its surrounding areas.
Below: Wimbledon Village £8,750 pm (£2,019 pw) (Wimbledon)
Left: Walton-onThames £1,750,000 guide (Weybridge)
Right: Cheshire
£1,250,000 guide (Hale)
Below: Cheshire
£3,000,000 guide (Alderley Edge)
Below Right: Kent
£550,000 (plot) guide (Sevenoaks)
NEW HOMES & DEVELOPMENTS
Hip-hop, Garage or Jazz?
(Computer
Scanning the architecture of new home styles offered across the country at the moment, is a little like glancing at a list of most downloaded pop songs: big hits from every past genre and lots of sampling, but no clear style to define the here and now. Why is this, and what do most buyers prefer?
James Gibbs, who leads our Land & New Homes team in Exeter, argues that demand for radically new styles has grown, encouraging more niche and daring developers to experiment with designs, materials and, especially, green technologies. This explains the great variety on offer today. Meanwhile, even the most cautious builders recognise the broad desire amongst buyers for buildings
which both satisfy their mental picture of a ‘proper, solid home’ and look fashionably up-to-date.
Picking up on this, Sarah Walsh, who heads up New Homes for Ipswich, feels strongly that good architecture, like good art and science, does not reject the past, but builds upon its successes. This makes it inevitable, she says, that whichever style is eventually seen to have defined current times, it will be an evolution of earlier ones. “Buyers rarely want straight imitations. They want modern designs which feel good because they are rooted in traditions refined over the last 140 or more years.” Switching back to the musical analogy, this suggests that a song to match the defining house of the present,
Above: Norfolk
£1,875,000 guide (Norwich)
Below: Devon £TBA (Exeter)
is unlikely to come from a tribute band. A Taylor Swift cover of Gershwin, though, could be a perfect fit for our era.
MORE PLANNING OFFICERS, BUT…
It is much too early to say whether the new government’s promises on new homes will be met with greater success than those of its predecessor and its commitment to appoint an additional 300 planning officers is welcome. It also, though, underlines how its ambition is limited by a lack of financial room for manoeuvre, given that, according to the Royal Town Planning Institute, the total number of planning officers has not recovered since being reduced by 3,100 between 2010 and 2020.
MORE NEW BARN CONVERSIONS
Amongst the final changes approved by the previous administration was an extension of permitted development rights in relation to agricultural buildings, doubling the number of homes that can be delivered through such conversions, without planning permission, from five to ten.
Numerous restrictions apply and, in national terms, this change will have little impact on overall numbers: since 2014, the number of such permitted development conversions of agricultural buildings has been fewer than 600 per year. In a tough year for farm businesses though, this could throw a vital lifeline to some.
CONTROLLED EASING
At the time of writing, the base rate remains at 5.25%, yet there are many mortgages available in the mid to high 4 percents and the five year average for overnight (SONIA) swap rates is almost a whole point lower than a year ago, at just under 4%. Combined with statements from the Bank of England, this creates a picture of stability for the coming months, but no hint of anything but gradual change. In other words, if you are waiting for appreciably lower rates, you could be waiting a long time.
EXTENDED MORTGAGE TERMS
We are encountering more people who wish to extend the length of their mortgage, hoping to reduce payments now and either refinance in future at a lower rate, or simply cut the term back again, through overpayments. Extending is not the best solution for everyone. But for those who do, making additional payments when that becomes possible, does have a dramatic effect. For example, with a £250,000, 30 year, 4.8% mortgage, overpayments of £100 a month pay off the mortgage 4.25 years sooner, saving £36,424 in interest. Even a monthly overpayment of £30 (£1 a day!) pays off the mortgage 17 months earlier, saving £12,486.
SCHOOL FEES AND THEORETICAL INVESTMENT INCOME
For parents considering borrowing to pay school fees who also have investments they do not wish to liquidate, some lenders are offering an interesting route. By accepting that a nominal percentage of the asset base could be drawn upon in any given year to create additional income, and counting that sum towards the total income, they increase the maximum loan, without the need for the assets to be realised or secured.
For independent mortgage advice, contact Private Finance on 0800 980 8777 or at jacksonstops@privatefinance.co.uk.
www.privatefinance.co.uk
Below: Surrey, from £750,000 (Reigate)
(Computer Generated Image)
COUNTRY MARKET COMMENT
National stability. Local change?
The new government looks unlikely to alter a broadly stable position. At a local level though, its property policies are intended to disrupt.
Looking at our year-on-year national figures, overall sales are up by 19% and new instructions by just over 30%, making for a refreshingly active market. Pricing remains sensitive and bank interest rates look compatible with modest capital gains over the coming months. Furthermore, reports of this ‘steady as she goes’ position are remarkably consistent across our country house offices and markets, from Cornwall to Northumberland. Rental
Above: Essex
£4,950,000 guide (Ipswich)
Left: Staffordshire
£3,500,000 guide (Alderley Edge)
Right: North Devon
£1,150,000 guide (Barnstaple)
Below: Devon
£3,750,000 guide (Exeter)
demand, in contrast, is significantly ahead of supply, resulting in sharp rent increases, especially for new lettings in the south east. Our positive experience this year to date –admittedly largely confined to the middle and upper value markets – is echoed by broader official statistics. Bank of England reports show mortgage approvals for house purchase almost back up to levels typical for 2014 to 2020 (see graph overleaf) and expectations (led by the Bank) are that interest rates will now fall, if slowly. Meanwhile, Land Registry figures show that, after a dip last year, yearon-year price growth for detached houses has moved back into positive territory, if only just. Given the cumulative size of last year’s five interest rate increases and the on-going stream of existing owners reaching the end of their sub-2% fixed rate loans, some are surprised to see price increases at all. Nevertheless, current sales suggest that modest capital growth, along with most other aspects of this picture of stability, will continue. In no small part, we suspect, this is because expectations of our new government are so limited.
NOT RADICAL?
By common consent, our new Prime Minister and his team have little room or appetite for radical economic change. Markets –including our own – have long factoredin their victory, shrugged and moved on. In relation to property concerns, some of Labour’s manifesto promises also appear to be ‘more of the same’. Those renting privately, for example, are assured that Section 21 (‘no fault’) evictions will be banned immediately, but this is something tenants have been promised for a long time. Similarly, for owners of long leasehold property, there are commitments to continue existing actions against abuses of power by freeholders, such as in relation to ground rents and excessive service charges.
The manifesto does though, include some more ambitious, arguably radical changes. These include “steps to ban new leasehold flats and ensure commonhold is the default tenure”, which looks dry but concerns the whole legal basis of ownership. For owneroccupiers in apartment blocks, switching to commonhold would bring opportunity and responsibility and, along with them, the potential for both community and conflict. If you are one such owner, it is probably worth looking at the Law Society recommendations on which the reforms will be based*.
Left: Gloucestershire
£560,000 guide (Chipping Campden)
Below: West Sussex
£3,600,000 guide (Mid-Sussex)
Below Left: Kent
£4,250,000 guide (Sevenoaks)
MORTGAGE APPROVALS: SEASONALLY ADJUSTED 2014 - 24
SOURCE: BANK OF ENGLAND / JACKSON-STOPS
Above: Surrey
£3,500,000 guide (Oxted)
Below: Suffolk
£3,250,000 guide (Ipswich)
Momentous as it might be, the impact of commonhold will take years to be widely felt. In contrast, if you live in, or want to live in, an area currently targeted for development, then government plans to ramp up the pace of new house building could generate rapid change. Promises such as ‘exemplary development to be the norm’ look reassuring to all, as does a desire for new homes which
‘promote nature recovery’. Other promises, though, are more divisive and less vague. The following stand out:
• Restoration of mandatory housing targets [for local authorities]
• Strengthened presumption in favour of sustainable development.
• A “new generation of new towns”
• “Where necessary Labour will not be afraid to make full use of intervention powers to build the houses we need.”
The commitment to build is clear. Less clear is how this government will ensure that quality and environmental commitments do not get brushed aside in their haste to act. It is past failures on this front which, in our experience, have fuelled deep local resistance to development, not objections to new homes per se. The more that this new administration can win battles over minimum standards at the national level, the easier the passage of new local development, should be. If, as expected, the overall market can continue its current encouraging levels of both supply and demand, that should make the corporate and community consents needed, easier to reach.
*Reinvigorating commonhold: the alternative to leasehold ownership, published by the Law Commission July 2020 (Law Com No 394)
Prof Dr Larissa Suzuki is UCL Honorary Associate Professor of Computer Science, a Visiting Scientist at NASA JPL, Guest Lecturer at Harvard and an Al Principle Ethics Fellow at Google, where she is also a Technical Director.
The views expressed herein are solely those of the author and do not represent the positions of her current or former employers, clients and associates.
PROPERTY EXPERTS SINCE 1910
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AI AND SMART HOMES
A personal view from Dr. Larissa Suzuki
Since a young age, technology has fascinated me deeply. Attending university at the age of 15, I embarked on a journey as a computer scientist and engineer, driven by the urge to create technologies that augment human lives and our surroundings. One of the most intriguing experiences of my career has been working on the development of smart cities. Within this broad spectrum lies the concept of Smart Homes. Beyond the realm of gadgets and AI, smart homes hold a deeper significance: they possess the potential to transform living spaces into personalised, responsive sanctuaries. Consider the profound impact smart home technology can have for the visually impaired and physically disabled. With the aid of voice-activated AI assistants, they can control lights, thermostats, appliances, door locks, entertainment systems and specific mobility challenges, fostering a great sense of freedom and autonomy within the home environment. For pet owners, smart feeders can dispense food at scheduled intervals, ensuring your beloved canine is well-fed even in your absence. As a pet parent, using cameras and smart
lighting to monitor our pets' wellbeing has become an integral part of my routine. For human babies and their parents, a nursery equipped with smart monitors and sensors tracking sleeping patterns and environmental conditions offers invaluable peace of mind. The integration of personal wearables with smart home technologies will further enhance this experience. The beauty of smart homes lies in their adaptability to diverse lifestyles. Whether you're a tech enthusiast, a busy professional, a pet owner, or a new parent, a plethora of smart home ideas exists to streamline daily routines and enhance quality of life. I personally use technology to augment my life and the lives of those around me. "Why don't you talk to me?" asked Michelangelo of sculpture. Asking that of architecture, smart home technology provides an answer. It allows us to interact with our living spaces as never before, re-conceptualising our relationship with our homes, in the process. Whether you seek to accommodate individual needs, express your personal style or simplify daily chores, the potential of smart homes awaits your exploration.
Country Houses 020 7664 6646
London
Mayfair 020 7664 6644
Pimlico 020 7828 4050
Teddington 020 8943 9777
Weybridge 01932 821160
Wimbledon 020 8879 0099
West Country
Barnstaple 01271 325153
Blandford 01258 423002
Bridport/Dorchester 01308 423133
Exeter 01392 214222
Shaftesbury 01747 850858
Sherborne 01935 810141
Taunton 01823 325144
Cornwall 01872 261160
Cotswolds, Hereford & Worcs
Chipping Campden 01386 840224
Central
Northampton 01604 632991
Woburn 01525 290641
Yorkshire
York 01904 625033
Harrogate 01904 625033
Thirsk 01904 625033
North West & North Wales
Alderley Edge 01625 540340
Lancashire 01704 651029
Chester 01244 328361
Hale 0161 9288 881
East Anglia
Burnham Market 01328 801333
Bury St Edmunds 01284 700535
Chelmsford 01245 806101
Colchester 01206 982272
Ipswich 01473 218218
Newmarket 01638 662231
Norwich 01603 612333
South East
Canterbury 01227 781600
Chichester 01243 786316
Arundel 01903 885886
Emsworth 01243 370300
Cranbrook 01580 720000
Dorking 01306 887560
Midhurst 01730 812357
Mid Sussex 01444 484400
Oxted 01883 712375
Reigate 01737 222027
Sevenoaks 01732 740600
Stockbridge 01264 586 926
Tunbridge Wells 01892 521700
Weybridge 01932 821160
Woking 01483 322135
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