SNAPSHOT SUMMER 2011 RESIDENTIAL RESEARCH sales

Nick Loweth, partner in the Hungerford office, discusses how the market has been performing, his most interesting recent sales, and how he thinks the market will fare in the coming months.

How has your market performed in the capital among overseas buyers drove prices Hungerford sales market so far this year? to a new high. The average price of prime London at a glance property rose by 1.4% in May, with prices now 2% The spring market began well, with ‘early bird’ higher than they were at their previous peak in sales such as The Priory, Alton Priors catching Figure 1 March 2008. What is coming to market? the attention of buyers. Activity slowed down in New instructions, past 12 months

April however, as many buyers took advantage of the late Easter, bank holidays and Royal Wedding, to take long holidays. There was a ‘feel good’ factor after the wedding and activity The number in May was much stronger, with a number of of properties properties achieving figures well in excess of their guide price. In the fortnight leading up available is low, to writing this report the Hungerford office put properties to the value of over £19 million while demand“ under offer. There has been little, if any, remains relatively underlying economic growth in the UK since “ October 2010, so the national picture is not as high, making now optimistic as it is in this area. a very good under £500k 18% Where do your buyers tend to time to get your £500k to £750k 17% come from? £750k to £1m 23% property on £1m to £1.5m 18% We very much benefit from a strong prime £1.5m to £3m 15% London market, with 34% of our buyers coming the market. over £3m 9% from the capital. Thanks to our 16 London offices and central data base which contains details on potential buyers around the world, How do you think the market will Figure 2 we receive enquiries from people who wouldn’t fare in the coming months? Sales by price band otherwise know to look for property in this area Exchanges, past 12 months If interest rates remain on hold the market is on the internet. 22% of our purchasers come unlikely to change dramatically this year. It will from the South East, while 36% come from other most likely follow the typical market trends by parts of the UK. International buyers account for being relatively quiet over the summer months, 8% of our sales. with activity picking up in early September for the autumn market, which normally runs through to What’s the most interesting sale late November. you and your team have been involved in recently? Why should people think about We launched Parlow, Little Bedwyn, in Country buying or selling now? Life at the beginning of May. We arranged an We have had a great run of form recently, with a incredible 38 viewings in just two weeks, which number of properties going under offer. The number in turn resulted in seven offers being made. This of properties available is therefore low, while under £500k 14% has led to the house being sold for considerably demand remains relatively high, making now a very £500k to £750k 18% more than its guide price. good time to get your property on the market. £750k to £1m 20% £1m to £1.5m 14% How have house prices been £1.5m to £3m 25% performing? over £3m 9% House prices appear steady. National country house prices climbed by 0.3% in May, more than offsetting April’s 0.2% decline. The contrast between the prime London market and the Nick Loweth Partner mainstream UK market has become even more +44 (0)1488 682 726 pronounced as the appetite for prime property [email protected] SNAPSHOT SUMMER 2011 RESIDENTIAL RESEARCH Hungerford sales

Charting the market

Figure 3 Figure 5 Where do our buyers come from? Market activity Buyers, past 12 months Year-on-year change (three months to May 2011)

South East 22% Exchanges 19% London 34% New applicants -12% Rest of UK 36% International 8% Viewings -15% Prices 0.5%

Figure 4 Figure 6 Age of our buyers Market performance Buyers, past 12 months Prime London and country property (sales, prices) vs FTSE 100, past 5 Years 150 30s 23% FTSE 100 40s 34% 120 50s 28% Prime Central London 60s 11% 90 70+ 4% Prime Country 60 House Q2-Q4 Q1-Q4 Q1-Q4 Q1-Q4 Q1-Q4 Q1 2006 2007 2008 2009 2010 2011 Hungerford properties and the Knight Frank team

For sale under offer Victorian farmhouse An elegant family with 52 acres of land friendly village home and stunning views Oxenwood, Baydon, Wiltshire 5 4 £2.65m £850,000

for sale under offer Perfect village house A fantastic former mill on the / on the River Kennet Oxfordshire borders COMPTON, BERKSHIRE Mildenhall, Wiltshire 5 4 £1.35m £1.35m - £1.75m

For sale SOLD Historic family house Idyllic location with annexe Little Bedwyn, Childrey, Oxfordshire Wiltshire 7 4 £850,000 £1.3m

Knight Frank Hungerford Sales +44 (0)1488 682 726 [email protected] Ramsbury House, 22 High Street, Hungerford RG17 ONF KnightFrank.co.uk/Hungerford Nick van Zeller Rob Wightman Nick Loweth Ed Cunningham Office Head Partner Partner Country Department

If you have any queries or would like to obtain additional information on the UK or international housing markets please contact: Liam Bailey, Head of Residential Research, +44 (0)20 7861 5133, [email protected] © Knight Frank LLP 2011 - This report is published for general information only. Although high standards have been used in the preparation of the information, analysis, views and projections presented in this report, no legal responsibility can be accepted by Knight Frank Residential Research or Knight Frank LLP for any loss or damage resultant from the contents of this document. As a general report, this material does not necessarily represent the view of Knight Frank LLP in relation to particular properties or projects. Reproduction of this report in whole or in part is allowed with proper reference to Knight Frank Residential Research. Knight Frank LLP is a limited liability partnership registered in with registered number OC305934. Registered office: 55 Baker Street, London, W1U 8AN