Bristol Outlook Regional Property Market Focus 2011
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bristol outlook Regional Property Market Focus 2011 Insight into your local market Focus on the national country house market Impact of the prime London market Market forecast Bristol outlook of major roads and Bristol the benefits of lower stamp local update International Airport. While duty and good mortgage these bring huge advantages deals while they remain As well as its excellent transport links, employment to residents, vendors selling competitive, as this could opportunities and colourful attractions, Bristol’s renowned properties affected by low- change with future interest schools remain one of the biggest draws for buyers. Those flying planes, for example, rate hikes. of note in the city include Clifton College, Badminton, Queen must acknowledge this We hope you find the outlook Elizabeth Hospital, Bristol Grammar School and Colstons when setting their asking of interest and look forward to Collegiate, to name a few. price. When doing so, advice hearing from you. from an experienced agent On the periphery of the quality homes are attracting is invaluable. area covered by our office, immediate interest, buyers a number of villages thrive are proving increasingly This publication is intended off families moving to be demanding and sensible to give you a flavour of the near schools such as Wells pricing remains key. This is market and demonstrate our Cathedral School, Tockington particularly true when the expertise, both locally and Prep School, Sidcot School, property is considered to nationally. Whether you are looking to act now or later Westonbirt and Millfield. suffer from a blight of some description. Bristol benefits in the year, our friendly and Looking back on 2010, the from excellent connections, experienced team is here to most pertinent message from with two motorways, two help. But do bear in mind that James Toogood the market is that, although main rail lines, a number those who act earlier will reap Offi ce Head Age of our buyers bristol by numbers 20s 2% 30s 19% Knight Frank’s Bristol offi ce has emerged from the credit crunch as the area’s leading prime property agent and expects to 40s 43% consolidate this position further during 2011. 50s 22% 60s 12% • The average London buyer • On average, fi ve off ers are 70+ 2% spends £1.3m. made on our properties every week. • On average we have achieved 95.0% of the guide price on • Knight Frank Bristol’s online Sales by price band sales in the past 12 months. property listings are viewed Under £500k 30% 1,214 times a day through £500k - £750k 29% • We have 509 potential buyers our award-winning website. on our books looking to £750k - £1m 21% spend a collective total of £1m - £1.5m 9% £500m. £1.5m - £3m 11% Our Team in action Burnett House the owners – disillusioned We inspected this property in and frustrated with the lack of 2008 but were unsuccessful in activity – invited us to inspect gaining the instruction because and value it once again. Having a competing agent valued the put our recommendations property at an unrealistically forward, we were instructed high price. After 23 fruitless to sell the property and within months during which that nine days of marketing we agent failed to sell the house, agreed a sale to a cash buyer. burnett house and strong demand. Indeed, How the prime London, prime National Country we moved into 2011 with 12% country house and mainstream more purchasers registered to UK markets compared in 2010 House Market buy country house properties across the UK compared to the 110 Activity boosted by the closing gap between overly ambitious same position in 2010. The sellers and cautious buyers. market for properties priced x below £1m will however remain e 105 The national country house A positive outcome of this challenging for vendors due market experienced quite an was the impact it had on the to the absence of a noticeable nge ind a upheaval last year. Although gap between overly ambitious recovery in mortgage supply. ch e price growth in the 12 months sellers and cautious buyers. ic 100 The most critical issue for Pr The necessary asking price to June 2010 helped the market vendors this year will be claw back some of the falls reductions that began to take price. Only the most perfect place in August and September seen during the credit crunch, properties can justify ambitious 95 l t r r v c y n b g narrowed this gap, leading to a u an ep Ju J J Oc ongoing problems with mortgage Ap Fe De No Ma expectations in the current S Au improved activity in the fi nal M availability and aff ordability market. For most properties, quarter of the year. caused this growth spurt to this approach will lead to Prime London Prime Country UK reverse. Prices by the end of the delays in attracting interest We expect 2011 to mirror 2010 Sources: Knight Frank Central London Sales year did however, remain 3.3% – the best properties are likely and lost marketing time in the Index, Knight Frank Prime Country House higher than the year before. to sell well due to thin supply critical spring months. Index, Nationwide House Price Index £1m+ across the UK are from option as the diffi culties in London’s success London. The fi gure hits 31% the Eurozone worsened, and for property costing £2m+. while the pound was trading feeds demand for at a discount to the euro. Our experience in the London country property market confi rms that much of its London also experiences strong performance stems from ongoing demand from Asia- There is no doubt that the see a rerun of last year’s strong the perception that the market Pacifi c buyers who have strongest performing property performance in terms of sales is a ‘safe haven’, particularly for benefi ted from 30% to 50% international buyers. market in the UK during 2010 volumes and buyer demand. price growth in Hong Kong, was the prime London market This is demonstrated by the Singapore and other key For large parts of the country – with prices rising by nearly volume of new applicants from Asian centres over the past house market across England, year. They are keen to take 11% over the year. Europe looking to buy in central and even into Scotland and London, which rose 23% year- advantage of the weak pound, While prices in London are Wales, this positive outlook for on-year in the fi nal quarter removing their money from unlikely to see any signifi cant London matters. Over 22% of of 2010. London property what have arguably become growth, we expect 2011 to buyers of country houses priced provided a strong defensive very hot markets in Asia. Financing with Market Forecast Knight Frank We are unlikely to see strong While we expect country house capital growth in any residential prices to rise only marginally As a highly respected team rates available on the high sector in 2011. The opportunity in 2011, the fundamentals in the property fi nancing street. If you are considering for speculative gains was underpinning the market are as strong as ever. This year will be industry, with 150 years of borrowing above £1m, our presented in early 2009 and the third consecutive year when combined experience, Knight close working relationships by mid 2010 this had all but new-build development volumes Frank Finance specialises in disappeared, at least for the with the world’s private will struggle to reach even 50% mortgages for main or second short-term. banks, commercial lending of the 2007 peak level. homes, investment property, sources and finance houses, The vast majority of buyers in For those with access to buy-to-let mortgages and enables us to achieve the the market have recognised this equity this year, there will be commercial property fi nance. fact and are looking at property very best terms for our considerable opportunities in For loans below £1m, we clients, including those as off ering a stable home for the market. For the investor or have access to all of the most unable to find financing their wealth in the long run. holiday home purchaser these competitive mortgage interest solutions elsewhere. Demand from investors and opportunities will be centred holiday home buyers has on strong yielding properties. To fi nd out more, please call us on: +44 (0)117 317 1999. remained strong, but again is For others it will be in securing driven by a view of long-term properties with scope for potential growth. refurbishments or improvements. Bristol outlook A selection of properties sold in 2010 The Old Rectory, Siston The Horse Race, Failand Savernake, Stoke Bishop Exchanged within 14 days of agreeing a sale Achieved approximately 16% above the guide Achieved £165,000 more than any other agent quoted Tellisford, Clifton 19 Manilla Road, Clifton 9 Grove Road, Combe Dingle Ended up with two buyers and exchanged Sale agreed within 24 hours Two off ers achieved and sold for 4% below within three weeks the guide your local team James Toogood Rupert Oliver Lucy Elliott Rachel Cousins James worked in Bath for an Rupert joined Knight Frank in Lucy joined the team 14 months Prior to joining Knight Frank in international agent before 2004 after working in London ago having previously spent 9 2003, Rachel worked as a sales joining Knight Frank in January and Gloucestershire. Rupert years providing marketing and negotiator for 4 years with a 2001. James has run the specialises in the town market PA support at an international local Bristol agent, providing residential offi ce in Bristol for and whilst he has successfully property company.