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Tips for bagging yourself a new-build bargain in a difficult market

By Jeremy Hazlehurst

Purchasing a property from a developer is never an easy thing. Jeremy Hazlehurst asks three experts for their buying advice:

POLLY COLDWELL, DEPUTY EDITOR OF FIRST TIME BUYER MAGAZINE:

1) Ensure the property is big enough for your belongings. Check that there is somewhere to put your hoover, etc. Garages have shrunk as well: measure it to make sure your car fits.

2) New builds are rated for their energy, water and waste under the Code for Sustainable Homes. Check the rating to get an idea of the property’s energy efficiency and utility bills. A lot of developments now use solar power, which can bring down your bills substantially.

3) Housebuilders often offer incentives. Some are beneficial, such as George Wimpey’s 10 per cent deposit match, but others are gimmicks. Don’t be lured in by gym memberships or retail vouchers – a house should be able to sell itself.

4) Check the service charge. It’s often hard to see what you’re getting in return. Find out who is responsible for managing the building and ask what the service charge covers before you move in.

5) The quality of new builds varies depending on the developer and the specification. Talk to others who have bought on the same development or through the same builder and get their feedback. Unlike builders or estate agents, residents are likely to be upfront and honest.

CAMILLA DELL, MANAGING PARTNER OF LONDON BUYING AGENCY BLACK BRICK PROPERTY SOLUTIONS:

1) Check if the developer is in good financial shape. You don’t want to be buying from a developer with a likelihood of going bust. If the developer is struggling, you can use this to negotiate hard and get a good deal.

2) Check how many units are going to be built and where. Ask to see a full site plan. You don’t want to buy a flat with a great view only to have another building spring up in front of you.

3) Check where the affordable housing element of the development is going to be. If you are next door to this, it will affect the value and re-sale value.

4) Ask when completion is going to be and ask your lawyer to try and negotiate some protection if the developer doesn’t complete on time. Never use a solicitor recommended by the developer.

5) If you are obtaining bank finance then there’s a risk that the flat will be worth less than the original agreed price by the time it is finished. If this happens, the bank will only lend to you based on the value of the finished flat, and you might have to inject more equity. Try to agree with the developer that if the flat is worth less once completed, you can re-negotiate.

MARTIN BIKHIT, MANAGING DIRECTOR AT ESTATE AGENT KAY & CO:

1) Try to buy in a smaller development. When you come to sell it is less likely that there will be other similar properties on the market and it’s likely you can get a better price.

2) Beware of artificially low service charges – these often creep up over time, particularly if you have to pay for services such as lifts, a gym or a concierge.

3) Buy the best that you can afford in the development. A flat that has a better view and is on an upper floor will ultimately appreciate at a better rate.

4) Buy in an area where new builds a scarce. Your investment will benefit from a premium resale price in the medium term as it will still be the newest that is available. If something newer is going to spring up next door in the next 12 months then your new build will not be as attractive.

5) If there is car parking available always buy one, particularly if the number of flats exceeds the number of spaces available

There’s still time to be in your new home by Christmas, just follow our ten golden rules

By Graham Norwood

Most people want the dust to have settled on their new home by Christmas. And this year there’s even more incentive to complete a move before December 25.

The Government’s move to scrap the 1per cent stamp duty on homes between £125,000 and £175,000, introduced to boost the market last September, ends on New Year’s Eve.

With average house moves taking 12 weeks and with only six weeks to go before Christmas, time is of the essence. If you want to avoid stamp duty, or are buying in a higher price range and wish to complete in time for the turkey, what should you do now?

EXPERTS SAY THERE ARE TEN GOLDEN RULES:

1. INSTRUCT MULTIPLE AGENTS TO SELL

‘Don’t be tempted by a cheap fee from one agent,’ says Ed Mead, of London agency Douglas & Gordon. ‘What’s the point of saving £2,000 if the property isn’t selling?

Pay a multi-agency fee to have two or three agents competing. They’ll be more urgent.’

2. PRICE REALISTICALLY

‘A too-ambitious asking price will put buyers off,’ says Camilla Dell, of Black Brick buying advisers. ‘Put it on at a competitive price. You may get buyers competing.’

3. ORGANISE THE PAPERWORK

‘Get your Home Information Pack (HIP) ordered several weeks before you want to launch. It’s now a legal requirement,’ says John Keeble, of John D Wood estate agency.

A HIP consists of a questionnaire about fixtures and fittings being left behind, plus an Energy Performance Certificate based on an inspection b energy efficiency experts, as well as title deeds and search information from the council and utilities.

4. APPOINT A SOLICITOR QUICKLY

‘This is essential; a slow solicitor will frustrate the buyer and seller,’ says Jo Eccles, of relocation firm Sourcing Property. ‘This could cost you your purchaser or new home, so don’t scrimp on legal fees.’

5. MAKE OVER YOUR HOME

London house doctor firm The Final Touch gives the example of a flat valued at £450,000 that had no buyer. It recently sold for £512,000 after being spruced up at a cost of £2,500

Prime time in London

By Richard Warren, Property Supplement

A surge in the capital’s prime central housing market is driven by overseas buyers taking advantage of the weak pound and low prices

A strong recovery in prime central London’s housing market over the past six months has taken even the most optimistic observers by surprise. Prices are now 6 per cent higher in London than in March, figures from estate agency Knight Frank show.

This rise has been helped by a 1.3 per cent increase in September, the company’s latest research reveals.

Overseas investors have flocked to London since the spring when prices were 50 per cent below their late 2007 peak in US dollar terms. Buyers include mainlanders, British expatriates and Chinese buyers from Hong Kong, as well as buyers from other countries in the Asia-Pacific.

“We have seen stabilisation of values probably as far back as March this year, along with increased purchaser activity,” says Peter Murray, a partner at agent King Sturge in London. “A lot of international money is coming into central London, taking advantage of the decline in values and the currency swing.”

Liam Bailey, head of residential research at Knight Frank, says values have risen most strongly in the prime central London districts of Kensington, Chelsea and Notting Hill – up 9 per cent since March.

Price rises have rippled out to other parts of London, including prime areas of Richmond and Islington.

“Prices have done much better than people expected, because there isn’t much stock in the market and buyers have come back because they’ve felt confident, thinking that London’s economy is beginning to turn round,” Bailey says. “The weak pound has encouraged overseas buyers to come back into the market and the feeling that prices were over-discounted in March this year.”

Bailey says half of buyers for properties valued at £2.5 million (HK$27.5 million) or more were from overseas during the summer months. About 4 per cent of all buyers came from Hong Kong and the mainland, he adds. “European, [Middle Eastern] and even American buyers are very prominent. Hong Kong buyers tend to be more noticeable among investment purchasers.”

Murray explains that King Sturge has seen a lot of interest from the Asia-Pacific region recently, not just from Hong Kong.

“This region has consistently been buying UK properties, in good times and bad, and one of the motivators is buying for investment or buying as a base for their children who are studying in London.”

Bailey says that a continuous lack of supply coupled with strong overseas interest will support prices over the next 12 months. After a quiet period in the market during the autumn, he says prices may edge up 5 per cent next year.

“The lack of properties available to buy in the market means it is going to feel quite subdued over next few months. We will have to wait for [next] spring when we are hoping to get more properties back into the market.”

After forecasting a recovery in the prime central London market last spring, Camilla Dell, managing director of buyer agency Black Brick, is uncertain it can be sustained.

Much of the increase in buying activity during the spring and summer was fuelled by the release of pent-up demand from cash-rich Britons living in rented accommodation who want a home of their own, she says.

“We are slightly surprised that the numbers are what they are, that we have had 6 per cent price growth,” she says. “We are hesitant to say this signals a recovery. If we see a lot more supply coming onto the market then we won’t see this level of growth continue.”

She thinks that the national property market may suffer over the next year or so if the economy worsens, but that prime central London’s housing sector may be less affected.

“In the second quarter of 2010, unemployment is expected to peak at 3 million, so we may see price falls,” she says. “But London is a different animal to the rest of Britain. It will always attract international investors and buyers.”

Dell advises buyers not to delay making a purchase in the expectation that prices may fall again.

“If you can find the right property at a good price then it is worth doing,” she says. “Buyers become too obsessed with price. Buying property in London ought to be seen as a long-term thing because it has a proven track record of attracting international investment.”

London’s biggest private landlord, Bruce Ritchie, chief executive of Residential Land, which owns 1,000 homes in London, is confident London’s best addresses will ride out any economic turbulence. He expects investment returns to rise over the next year or two, especially for the best quality homes.

“For a yielding asset the path is only upwards from its current lows,” Ritchie says.

Greenwich Creekside, with close proximity to Canary Wharf and direct links into the city, will be released in Hong Kong shortly by King Sturge.

“It’s a good quality, well specified development in a very good residential area,” Murray explains.

“Apartments will command views of the river, city skyline and Canary Wharf.”

There is a selection of one, two and three bedroom apartments ranging from 500 sqft to 1,500 sqft. “I expect prices will start from about £220,000 for a one-bedroom apartment.”

Big houses on sale include, 23 Cadogan Place, a £26 million city mansion marketed by Savills. This Knightsbridge property has five bedrooms, cinema room, swimming pool, staff accommodation and four terraces.

Islington’s emerging prime market was lifted by the official opening of Highbury Square on September 24. The site, the former Highbury stadium of Arsenal Football Club, was redesigned as 650 apartments and penthouses, and will be completed later this year. Eighty flats remain unsold with prices for a two-bedroom penthouse starting at £995,000. The sales agent is Savills.

In Paultons Square, Chelsea, a four bedroom, two bathroom period townhouse with several reception rooms, home cinema and garden is on the market through Knight Frank for £7.25 million.

At the Barbican in the City of London, former commercial premises have been converted into Frobisher Crescent, a set of 69 apartments, with a three-bed home costing £1.875 million.

Sealed bids

Camilla Dell, MD of property consultants Black Brick Property Solutions, gives her advice for buyers dealing with sealed bids.

Despite recent excitement about price rises, the truth is that this seeming ‘improvement’ in the market is a symptom of a distinct lack of supply. On a day-to-day basis we are seeing the result of this unbalanced ratio between the number of buyers and the amount of housing stock available – one of which is the noted increase in sealed bid situations.

Sealed bids have certainly become commonplace again, particularly in prime areas of London and in the £850,000 to £2.5 million price range, where equity rich domestic and international buyers are battling against one another to secure the best properties in the capital. At Black Brick we are not only able to advise our clients on how best to deal with these situations, but also add credence and advantage to their bids just by being on board. A buyer who has employed a buying agent will always be considered a serious buyer, as they have already made an investment towards their property search.

However, for bidders with or without an advisor in tow, there are certain things they can do to increase the chance of their offer being accepted.

It’s important to remember that the winners of sealed bids are not always the highest bidders. Sellers will not only consider the price, but will look at a whole host of other factors that demonstrate the quality of the buyer – the ability to proceed with the transaction, the availability of and dependence on finance, for example.

Making the bid

It is up to the bidder to develop an attractive buyer profile and these are my top tips for bidders:

  • A supporting letter from a respected conveyancy solicitor, written and submitted on your behalf, will present you as professional and serious. Details on your ability to proceed with the sale, for example whether you are a cash buyer or have finance in place, whether you have sold your current home or are bound by any rental contracts, should be included.
  • Provide proof that bank finance is already in place if you need it to make the purchase. A supporting letter from the bank confirming this will help to show that you are a serious buyer, and are ready to proceed with the purchase.
  • To show you are committed and able to proceed quickly, offer to put down an immediate non-refundable deposit if your bid is successful.
  • Appeal carefully on a personal level. If possible find out about the vendor and add details in your bid that might appeal to them and suggest common ground. A succinct statement on why you want to buy the property will add a human element.

How much?

The matter of how much a buyer should bid is a tricky one and one that buyers can spend sleepless nights worrying about. The most important thing is to remember that there is only one chance to secure the property. Therefore, unless the bidder is a developer, the true value of the property as ‘bricks & mortar’ can be difficult to determine, and it becomes a matter of how much you are willing to pay for the property.

Bidders should therefore put their absolute best offer forward, offering the maximum price that they are willing to pay, feel comfortable with, and can afford.

A neat trick is to try to ascertain from the estate agent how many other people are involved in the bid, and what sorts of buyers they are. Developers, for instance, will only bid what they feel the property is worth and will rarely go beyond that in order to maintain their profit margins. First time buyers may be in good position to move, but may be very dependent on bank finance. Cash buyers will be at an advantage often despite the price they are offering, so those bidders reliant on finance might like to raise their offer if they can, to help counteract this advantage.

Sealed bids are a stressful process for buyers, and as they are not legally binding, there is still the chance that the winning bidder can be gazumped. The faster that contracts can be exchanged and completed the better.

www.buyassociation.co.uk

London Luxury-Homes Revival May Be Hit by Bonus Curbs

By Peter Woodifield in Edinburgh

Britain’s curb on banking bonuses may stunt the recovery in London’s luxury-housing market by wiping out the windfalls that let buyers afford big mortgages, according to property brokers Knight Frank LLP and Savills Plc.

Bankers and financial-services executives are just starting to buy properties again after a year of price declines ended in March. They already account for a smaller proportion of buyers than at the peak of the market, said Liam Bailey, head of residential research at London-based Knight Frank.

“If you take bonuses out of the equation, prices can’t rise as quickly and they will take much longer to return to peak levels,” Bailey said in an interview yesterday. Knight Frank and Savills are the biggest brokers for London houses and apartments costing more than 1 million pounds ($1.6 million).

The U.K.’s five largest banks agreed two days ago to impose limits on bonuses, following guidelines set by the Group of 20 nations at their summit in Pittsburgh last week. Financial companies have cut thousands of jobs in London in the global recession, contributing to a slump in luxury-home prices in districts such as Mayfair and Chelsea.

Slower Declines

Since March, property values in the most expensive areas have fallen at a slower annual pace, Knight Frank estimates. They started to increase on a monthly basis in April and gained 1.3 percent last month. Prices are still 18 percent below their peak and 8.9 percent lower than a year ago.

U.K. house prices as a whole rose 0.9 percent in September, the fifth consecutive monthly increase, Nationwide Building Society said today. Property values returned to the level of a year earlier, the first time since March 2008 that they haven’t been lower on an annual basis.

The improvement in the luxury-homes market is being driven by a scarcity of properties, rather than more purchasers, according to Savills, which is also based in London. The number of homes for sale is about 25 percent less than the average for the past five years, the broker estimates.

Finance-industry workers accounted for 32 percent of luxury-home buyers during the past six months, up from less than 30 percent at the start of the year, Bailey said. That compared with about 40 percent at the market’s peak in 2007.

“Going forward, the bonus equation will be pretty important,” Savills Research Director Lucian Cook said in an interview. “It might take some of the heat out of the top of the market.”

Bonus Pools

Alistair Darling, the chancellor of the Exchequer, met executives from HSBC Holdings Plc, Barclays Plc, Lloyds Banking Group Plc, Royal Bank of Scotland Group Plc and Standard Chartered Plc to sign up to the G-20 principles, the Treasury said. The rules restrict the amount the lenders can devote to their bonus pools and how much they can set aside for deferred payments to executives and traders.

The level of annual bonus payments is closely correlated with movements in the prices of the best properties in central London, Cook said. Even so, the effect of the new rules may be damped by salary increases awarded to bankers to avoid a drop in compensation, he said. That could let them afford larger mortgages.

‘Less Competition’

“The curb on bonuses will result in there being less competition,” said Camilla Dell, managing partner of Black Brick Property Solutions LLC, which helps wealthy individuals find homes in the U.K. capital. “Price rises are bound to be lower if you cut off a large chunk of the buyers.”

Not all bank employees face the prospect of lower bonuses. Goldman Sachs Group Inc. set aside a record $11.4 billion to pay compensation in the first six months of this year. The securities firm has already limited guaranteed bonuses to one year and is paying a larger share in stock as amounts increase.

The pound’s weakness is making London properties more affordable for overseas buyers. Sterling has fallen 28 percent against the dollar and dropped 25 percent against the euro since the height of the boom

In dollar terms, prices for prime London properties were about 50 percent cheaper in March than two years earlier, Bailey said.

London Luxury-Home Prices Rise on Lack of Properties

By Simon Packard in London

Luxury-home prices in central London rose 4 percent in the third quarter from the previous three months as buyers competed for fewer properties, Savills Plc said.

Houses and apartments worth more than 1 million pounds ($1.6 million) in the most expensive areas fell 4.9 percent on an annual basis, the property broker said in a statement today. The largest quarterly increases were in the western districts of Chelsea, Kensington and Belgravia. The annual decline narrowed from 11.5 percent at the end of the second quarter.

“There isn’t enough property on the market in prime areas and priced attractively to satisfy demand,” said Camilla Dell, managing partner of Black Brick Property Solutions LLC, which finds and buys homes for wealthy customers. Her company, which has advised on 45 million pounds of property deals this year, is participating in closed-bid auctions for two multimillion-pound homes in London this week, she said.

The number of homes for sale is about 25 percent less than the average for the past five years, London-based Savills estimates. Demand for luxury properties increased after values fell by about 18 percent from the market’s peak in September 2007, the broker said. The pound’s weakness also made purchases cheaper for overseas buyers. Sterling slid about 20 percent against the euro and the dollar since the peak.

The scarcity of prime real estate on the market may not last, according to Yolande Barnes, joint head of residential research at Savills. The strongest market in two years will probably encourage more homeowners to sell.

Emerging from Recession

“Prices are expected at best to level out again and may fall back,” Barnes said. The rate of unemployment and how quickly the economy emerges from recession will be critical, she said.

Knight Frank LLP, another London-based broker, said in a separate report today that luxury-home prices gained 1.3 percent in September from August. They dropped 8.9 percent from a year earlier, the smallest annual decline in 12 months.

“U.K. buyers have been especially keen to take advantage of low mortgage-rate costs,” said Liam Bailey, head of residential research at Knight Frank. “The real test in the market will come when interest rates rise.”

The U.K. housing market as a whole may also be stabilizing, according to a survey published by the Royal Institution of Chartered Surveyors on Sept. 15. The number of respondents saying prices increased in August exceeded those reporting declines by 11 percentage points, the first positive reading since July 2007, the London-based organization said.

Wider Recovery?

Home prices in England and Wales rose 4.9 percent from March through July, according to figures compiled by the Land Registry, lifting the average value to 196,338 pounds.

A rebound is also beginning for what Savills describes as ultra-prime properties that cost an average of 15 million pounds. Prices for those homes gained 0.9 percent in the third quarter from the previous three months, Savills said.

Brian D’Arcy Clark, head of Savills’s Private Office unit, advised the owners of 96 Cheyne Walk in Chelsea a year ago to delay selling the 12,770-square-foot (1,186-square-meter) house overlooking the River Thames.

Next week, he will start marketing the home, a former residence of painter James Whistler. Parts of it date back to 1670. The asking price — 25 million pounds — includes six bedrooms, separate accommodations for guests or staff, and off- street parking for eight cars.

“For an estate agent to advise a client not to do a deal is unusual,” D’Arcy Clark said. The move to sell “is an indication of our confidence.”

Southwest London Leads

Outside central London, the biggest price jumps among the city’s prime residential markets occurred in southwest London in the third quarter, according to the broker.

Prices in districts such as Fulham, Clapham, Wandsworth and Richmond, which range from 500,000 pounds to 2 million pounds, climbed 8.4 percent from the previous three months and are now 2.5 percent higher than they were a year ago.

Values in these areas fell almost 26 percent from the peak of the market to the end of March, triggering purchases from owner-occupiers who don’t require large mortgages, said Lucian Cook, a research director at Savills. Prices rose 6.4 percent in the second quarter from the previous three months.

Southwest London is probably a better “leading market indicator” for top-priced homes in the city and the U.K. than central London, where overseas buyers account for almost 60 percent of purchases and more than 20 percent of sales are of second homes, Cook said.

Central London leading UK property recovery, latest bulletin shows

By Ray Clancy, UK

Residential property prices in the UK have bottomed out with all the signs pointing to a stabilisation, according to the latest review but a two tier market is emerging.

The September bulletin from Black Brick, an independent search and acquisition property consultancy, points out that central London is leading the recovery with lack of supply and demand from those now receiving City style bonuses again means that prices are rising.

Indeed prime property in central London has seen the return of competing bids and gazumping. ‘Sellers are simply not prepared to reduce prices. Indeed, many potential vendors are withdrawing properties in the hope of further rises,’ the report says.

This has created two different viewpoints. There is often a sizeable valuation gap between the expectations of potential purchasers and vendors who see the market from understandably different perspectives. The gap in expectations has widened as sellers expectations firm,’ it adds.

Those who have the money are buying. ‘A big factor in the recent buoyancy of the London market in particular has been the renaissance of substantial City bonuses. The Square Mile is an important driver of the UK economy and the return to profitability of financial leviathans including the likes of Barclays, HSBC and Goldman Sachs has been a key driver to the recent Prime Central London price rises. Some of the recent awards will inevitably be spent on property. In tandem with an easing of attitudes by lenders towards large loans there is much to suggest that Prime Central London is in much better shape to rise further in the remainder of 2009 than the wider UK residential market,’ the report continues.

Elsewhere in the UK though, the picture is more subdued. ‘Recent data gives us confidence that the market has stabilised but further sharp, short terms rises are unlikely while unemployment continues to rise, credit markets remain closed and banks remain keen to reduce their exposure to property,’ the report says.

‘A two tier market separated by financing and location is becoming increasingly apparent. Cashrich buyers are competing for properties in a prime market still woefully short on supply and prices are rising. Away from these areas and further down the property food chain vendors are still struggling to sell. Bonuses and lack of supply are supporting the former, while rising unemployment is exacerbating the situation in the latter. There is little on the immediate horizon to suggest that this split will do anything other than widen,’ said Camilla Dell, Managing Partner at Black Brick.

Is this London’s Coolest Street?

By Jessie Hewitson

STYLE BIBLE VOGUE CALLS IT THE MOST FASHIONABLE ROAD IN EUROPE, BUT YOU CAN STILL AFFORD TO BUY IN THE AREA.

WHICH London neighbourhood contains the most fashionable street in the whole of Europe, according to Vogue? No, not swanky Knightsbridge, well-heeled Chelsea or even super-hip Dalston.

The title belongs to Chamberlayne Road, the main thoroughfare running through Kensal Rise.

Just north of Notting Hill and west of Queen’s Park, Kensal Rise is described by the style bible as a leafy, residential haven, bursting with “local character, vintage stores and buzzing gastropubs” — and plenty of celebrities agree.

Famous Kensal Rise residents include Jade Jagger, Sophie Dahl and her fiancé Jamie Cullum, Daniel Craig, Thandie Newton, Eddie Izzard, Dermot O’Leary, Louis Theroux and designer Phoebe Philo.

As well as great restaurants and a surprisingly large number of delis and antique shops, Kensal Rise’s fashionable residents have been attracted to this part of north-west London during the past five years or so by its rows of good-looking Georgian and Victorian homes, and the fact that Queen’s Park and Brondesbury Park are close by.

Portobello Road is a leisurely 15-minute stroll away, Paddington a half-hour walk or a 10-minute cycle along the towpath of the Grand Union Canal. There are also good Tube and train links – it takes an easy 20 minutes to get to Oxford Circus on the Bakerloo line Tube, and London Overground trains from the area go to Richmond to the west and Stratford to the east, in double-quick time.

Prices are a carrot, too: for an area that Vogue has raved about, it’s still surprisingly affordable, with a typical decent one-bedroom period flat starting at £200,000 and going up to £250,000, according to local agent Kay Meshkin-Pour of Mile estate agency. TWO-BEDS range from £275,000 to £300,000, and those with outside space from £290,000 to £330,000. Three-bed houses fetch between £550,000 and £600,000. According to rental portal upad (upad.co.uk), average rents in the area are £1,945 a month for a two-bed, and £3,494 for a four-bed.

“The main reason people are moving to Kensal Rise is it’s a fantastic place to live and still relatively cheap,” says Philip Seidl, who lives in the area and works for buying agency Black Brick Property Solutions. “It’s close to Maida Vale, St John’s Wood and Notting Hill and convenient to get to town. The area attracts lots of professionals from TV, music, film and fashion who spent their twenties hanging out in Notting Hill or Soho and now want a house and a garden. They often want to be within cycling distance of the BBC and Westfield shopping mall.

“Lots of people rent in Notting Hill or West Hampstead in their twenties and then they come to buy here. The people who live here have become much younger over the years. Lots of the buyers we get are now in their early thirties.

“People move here because of the vibe. It doesn’t offer the biggest houses in London and it’s not as cheap as it once was — but it has a great atmosphere.

Everyone knows everyone else, there are lots of cool shops and places to eat here, and it’s a very friendly place to live.”

Locals rarely leave the area at weekends — why would they? Cool bars and restaurants include Paradise.

By Way Of Kensal Green, a legendary pub-cum-restaurant-cum-club where Mark Ronson, Lily Allen and Sophie Dahl are among the regulars, and swish gastropub The Chamberlayne, Thandie Newton’s favourite boozer.

Then there’s family-friendly Gracelands café, Miro’s tapas restaurant, the William IV pub and The Diner, an American-themed affair serving cocktails and burgers.

There’s also the stylish art house cinema Lexi, offering grown-up snacks and drinks.

Foodies delight in the number of delis and trendy boutiques Supra and Eulabee ensure residents are clothes in the latest threads, with their homes decked out in vintage treasures from Howie & Bell and Niche.

MANAGEMENT consultant Zoe Guilford, 32, lives in Kensal Rise with her flatmate

Becky Jones, a 32-year-old beauty PR, in Zoe’s four-bedroom apartment.

“Five years ago I went for dinner at a friend’s in Kensal Rise, fell in love with her home and bought mine in the same new-build development. Originally I was looking at Kentish Town, but I got a lot more for my money around here. I loved the great transport links, yet it still had a villagey feel to it. A lot of the people in Kensal Rise are creative types — one neighbour’s a DJ, and there’s also a designer and a few musicians. We’ve all grown up a bit now, so we don’t party every night, but there’s still a lovely social aspect to living here. Another major plus is having some wonderful pubs — lots are gastropubs and the food is amazing.

There are also lots of delis popping up. “I’m fiercely proud of the area: when I first moved in I’d tell everyone that I lived on the outskirts of Notting Hill — but nowadays I tell people proudly that I live in Kensal Rise.”

Zoe’s apartment is now on sale for £750,000 through Foxtons.

KATHRYN APPLETON, 37, runs a soft furnishings business and lives in a five bedroom house which she bought in 2004 for £395,000.

“It’s massively convenient living here,” she says. “It takes about 20 minutes to get into town on the Tube, Portobello Road is just a 20-minute walk away and you can get to the M25 by car quickly.

“But it’s the shops and restaurants that make this area so special — I go for dinner at The Chamberlayne or the William IV, which has amazing tapas, or I see a film at the Lexi cinema. I feel that the area has so much more than your usual high street offerings — not that many areas outside of central London have a cinema, for example. There are also lots of interior design shops, clothes boutiques and places to go with the kids.

“It’s also Deli Central — I take my daughter to ballet each Saturday and we stop off at Minkies for a coffee and a slice of cake afterwards, which we both love. There’s also a Tesco that has just opened, which is very convenient.

“You can be very self contained living here — I can’t imagine anywhere better in London.

“When we bought, we got amazing value for our money, and our house price has gone up considerably — but more than that, living here offers us an amazing lifestyle.”

How to add an extension to your house

By Carla Passino

Adding extensions is a popular choice for those who need more space but don’t want to sell their house.

It will make your home more spacious, more easily sellable and possibly even more beautiful. An extension is one of the most valuable improvements you can make to your property, so long as you do it properly, accurately — and legally.

‘The most common mistakes people make when building an extension are doing the work without getting planning permission from the local council; thinking that the extension qualifies for permitted development rights when it doesn’t; and building something which aesthetically doesn’t work with the overall look and feel of the rest of the building,’ says Camilla Dell of Black Brick Property Solutions.

However, she adds, the good news is that these mistakes can easily be avoided by doing some thorough research in advance.

The first and most crucial step to take after you decide to build an extension is to get the planning right. New regulations that came into force in October 2008 classify extensions as permitted development work. This, together with the fact that a new wing can add value or speed up the process of selling your property in the future, has conspired to make extensions particularly mouth-watering.

What people don’t know, however, is that the permitted development rule only applies if more than a dozen conditions are met. Among others, the new wing, together with other buildings, should not take up more than half the land around the original house; it shouldn’t be higher than the highest part of the room; and it should have no verandahs, balconies or raised platforms.

So far, so simple, but some other limitations get really technical and can be confusing for the layman—for example, the one that sets the maximum depth of a single storey rear extension to ‘three metres beyond the rear wall of an attached house and four metres beyond the rear wall of a detached house.’ Or the one that requires side extensions to be ‘single storey with a maximum height of four metres and width no more than half that of the original house’.

Word on the street: count down to 16 September

By Anna Tyzack

SOME EXPERTS BELIEVE HOUSE PRICES HAVE HIT THE BOTTOM IN CENTRAL LONDON, BUT WHO KNOWS WHAT’S TO COME IN SEPTEMBER.

There have been mutterings this week that the house prices have already hit the bottom Nick Candy clearly things they have; estate agents in central London believe prices could have reached their lowest point as early as November last year. So does this mean we have all missed our chance to cash in on the downturn?

It all depends on where you live. Hamptons estate agency produced a heat map of house prices in London this week. Chelsea (SW3) glowed bright red – where prices have risen 9 per cent since 2008. Outer Chelsea (SW10), South Kensington (SW7), and Notting Hill (W1, W2 and W8) glowed orange, as did Borough (SE1) and Brixton, while Wimbledon shone yellow. “If you are looking for the bottom of the market in prime central London, I’m afraid you have missed the boat,” says Penelope Court, of estate agency Beauchamp Estates.

But every other London borough was coloured various shades of green, indicating drops of up to 18 per cent. If the map were expanded to the rest of the country, it would also be green, apart from hot spots such as the Home Counties, Sevenoaks and Bath, where prices are bolstered by London money and a lack of supply. Halifax’s index shows prices are still falling, by 0.5 per cent in June.

Experts believe the summer bounce in prime central London prices could drop back in the autumn. “I think prices will fall a further 5 to 10 per cent, either towards the end of this year or early 2010,” says Camilla Dell of buying agents Black Brick.

In January this year I asked estate agents and property experts across Britain to say when they thought prices would be at their lowest. September 16 2009 was the midpoint. Could it be that they were about right?

Yes, if the shortage of properties on the market continues. Price rises are caused by a lack of supply and an increase in demand. “If supply for country houses stays the same over the next six to 12 months prices will continue to harden,” says Tom Hudson of Middleton Advisors, who thinks November 2009 will mark the bottom of the market for country houses.

If supply were to increase, this could push prices down again – the W-shaped recovery, rather than the V.

But right now, why would anyone sell unless they truly had to? I asked myself this question on Monday when I received an offer on my flat for £100,000 less than the original asking price. For a small flat, this is some reduction.

Perhaps in the end, recovery will be L-shaped. The rate of price decline has slowed, according to Halifax’s latest figures but unless something happens (borrowing restrictions loosen, or another Lehman Brothers) the market will remain flat for some time.

I’m going to wait until September 16 before considering this week’s offer. By then we should have a clearer idea of the shape the recovery is taking.

How not to add value to your home

Thinking of selling your property? You don’t need to splash out on expensive renovations, just stay practical and functional, says Graham Norwood

Improve, not move is the mantra of our recessionary times, especially for those with a Sarah Beeny-esque penchant for making bags of money from bricks and mortar. We are constantly assailed with advice about what to do to boost the value of our home, but what changes push prices down and make a property less attractive to a future would-be buyer?

The answer? According to leading estate agents and relocatin agents, it’s bad news for you if you have just turned your home into an open-plan space with a flash kitchen and a converted basement containing a swimming pool and gaudy jacuzzi…

Bad move 1: Extravagant kitchens, bathrooms and hot tubs

This is the howler of choice for many homeowners. Estate agents say most buyers fit new bathroom suites or kitchen cabinets to put their mark on a property – so those installed by sellers are usually a waste of money.

“The classic mistake is a very expensive ground-floor jacuzzi room with separate shower unit, in all costing £10,000. It’s hardly ever used, and likely to be ripped out by the next owner. It sounds barmy, but I’ve seen it more times than I’d care to remember,” says William Kirkland of John D Wood estate agency in Oxford.

“There’s something worringly seedy about spa baths, and outdoor hot tubs that are very rarely used. They sit there 355 days a year, covered with a tarpaulin. When you finally dust it down, it’s filled with debris and putrid water,” says Robert Bailey, of Robert Bailey Property.

Bad move 2: Dodgy decoration

Decorations that reflect the eccentricities of the owner can be a turn-off for buyers, which is why estate agents and house doctors say “de-cluttering” and a large tin of neutral-coloured paint tend to maximise the appeal of a property going on the market.

“Purchasers look for quality – not necessarily gimmicky improvements, but high-quality finishes. Neutral ivory or white in a classic modern or period style is always the safest bet,” insists Richard Barber of estate agent WA Ellis.

Sam Trounson of rival agency Strutt & Parker says owners preparing to sell should remember most buyers make near-instant decisions about a home. “Money is often best spent on gravel on the drive and repainting the front door. The last place to spend money is the last room in the house when looking around,” he says.

Bad move 3: Flamboyant renovations

Modern architectural form often favours open-plan interiors, but the problem with emulating this in older homes means valuable bedrooms or private space are lost.

Spencer Cushing of John D Wood’s office in Battersea, south London, was asked for advice by an owner wanting to convert a three-bed, 1,200 sq ft apartment into a one-bedroom flat with a vast open reception area. “I tried to convince him that far from adding value, this would bring the market price down. It’s fine if you’re doing it for yourself but when you’re looking to sell it on for profit, it’s safest to create what the average Joe Bloggs purchaser is looking for,” says Cushing.

Another mistake is restructuring for unsympathetic uses. “A cinema room in a Georgian cottage or a Victorian fireplace in a new-build property will look out of place and will add no value at all,” adds George Franks of estate agent Douglas & Gordon.

Bad move 4: Swimming pools

A pool, especially in the garden, is a status symbol that can also become a liability.

“The running costs are hideous and people tend not to use them as much as they think they will. The cost per swim is extremely high for an outside pool ,” says James Greenwood of Stacks Property Search, a buying agency.

Sensible buyers avoid pools, insists Carl Davenport of Chesterton Humberts. He once helped sell the home of Duncan Goodhew, the British swimmer who won gold and bronze medals in the 1980 Olympics. He didn’t have a pool, “and if he doesn’t need one, nobody does,” Davenport says.

Bad move 5: Poorly planned extensions

More space usually means more value – but often only if this means more bedrooms and the home does not become excessively “over-developed” in the neighbourhood.

“Investigate the ceiling price in your area. If most homes like yours are selling for no more than £500,000, then sticking a £100,000 extension on the side and expecting the house to be worth £600,000 is completely unrealistic,” says Sharon Zaremski of upmarket estate agency Strutt & Parker.

Despite the recent trend “large, multi-storey subterranean basements have limited appeal,” says Bailey. “we have relatively little natural light as it is, so buyers will not value basement space nearly as much as light-filled space.”

Even worse, any botched extension work will bite back when you sell. “A lawyer for the purchaser will require proof that the necessary consents were obtained,” says Camilla Dell of Black Brick buying agency. If the consents aren’t there? “It’s unlikely a purchaser would be willing to take a risk and purchase,” she says.

So what does add value? A seller’s guide

  • A new survey from the Nationwide building society helps owners focus on three ways of improving a property and boosting value, too.
  • A 10 per cent increase in round floor space adds an average of 5 per cent to value (7 per cent if the home is detached). But the space must be “usable”, so that means adding a conservatory or utility room or home office – not a media room.
  • Adding an en suite bedroom through, say, a loft conversion or extending above a garage can add between 11 and 20 per cent to a property’s value, for houses that expand from two-to-three or three-to-four bedrooms as a result.
  • Energy-efficiency measures can boost a home’s value and “sellability”. New mandatory Energy Performance Certificates for homes on the market make it easy for buyers to compare different properties.

Interest rates, unemployment and lack of finance likely to hold up global recovery market

The first six months of 2009 has brought mixed result for global property markets but with tentative signs of growing confidence there is talk of signs of recovery.

But others, most notably Dubai, are still very much on the downturn and analysts struggle to find any signs of improvement. However, some emerging markets like Brazil and Turkey are seeing renewed interest from property investors.

Property Wire has spoken to analysts and real estate professionals in key markets and asked them what they believe will happen in second half of 2009.

In the UK economists and analysts have tried to play down small rises in property prices and point out that prices are still way below where they were at the peak of the market in spring 2008. Indeed there is a lot of caution and concern that the UK market is experiencing a small blip that could be cancelled out in the second half of 2009.

Research from Winkworth Estate Agents shows that property demand is rising. The number of viewings required to sell a property reached an all time high in January and February, as buyers started to show renewed interest in property, but weren’t yet confident enough to purchase. In the last two months, the research shows that the number of viewings required to sell a property has reduced substantially, as property demand has heightened.

However, Dominic Agace, managing director of Winkworth Franchising Ltd, points out that although activity levels have improved significantly he does not expect a further surge in 2009 and towards the end of the year they are likely to fall back again.

‘The ongoing cost and restriction of personal and commercial finance, combined with unemployment figures, will restrict any price growth in 2009,’ he said.

It may be an estate agent’s cliché, but location, location, location is what matters at the moment. Properties in prime locations, in favored streets in particular areas, may experience price growth this year, according to Agace.

In these cases competition, driven by buyers looking to take advantage of property discounts and low interest rates, will push prices up due to a lack of alternative suitable properties – without price growth properties are being held back from the market.

But he added; ‘These properties are an exception to the norm however, and I do not view price growth as a market-wide trend for 2009.’

Winkworths predicts greater activity levels in 2009, equating to an average of 10 to 15% more transactions than in 2008. But, volumes will still be lower than in 2006 and 2007. ‘I don’t expect volumes to return to 2006/7 levels for several years,’ said Agace.

‘Nevertheless, in this period of Government intervention and low interest rates, there is a great opportunity for those with 20% equity plus to buy and sell prior to any potential interest rate rises next year, and this is driving much of the demand.’

Research from Knight Frank also indicates improvements in the first half of 2009. According to Liam Bailey, head of residential research at Knight Frank, the freefall in prices has ended. But prices are not the key to recovery, he points out. It is transaction levels that need to be examined.

‘It is only when liquidity in the market improves that we will be able to point to a sustainable recovery. While signals from the mortgage market and from completions data are encouraging, this is only a start and there is some way to go before we can say we are on an upward path,’ Bailey explained.

He too predicts prices will fall again in the second half of 2009. ‘It seems inevitable that prices will edge lower in the UK through this year. However, future price falls are likely to be capped at 5% to 10% and the low point in pricing is likely to be reached during Q1 2010,’ he said.

Finance is the key to recovery. ‘The most significant issue for the market remains access to mortgage finance. With lower interest rates and lower mortgage rates the picture is improving, but for those without access to a significant deposit (and that still means 25% of the purchase price) rates are still relatively high,’ said Bailey.

‘The situation on mortgage finance availability is expected to remain tight through 2009 and into 2010 – but the direction will be towards an easing of constraints by the second half of 2010 which would begin to permit greater sales activity in the market. Interest rates could well be rising by this time, which might counteract the impact of easier credit.’

Camilla Dell of Black Brick Property Solutions says that what will happen depends on supply, unemployment and interest rates. ‘At the moment the market in prime central London is being driven by a shortage of stock. If the demand for London property continues and no new properties come onto the market, then this will support prices going forward and we will see the market bottom out and even start to see modest growth in prices as 2009 progresses,’ she explained.

‘However, if interest rates go up, combined with rising unemployment, we could start to see more properties come onto the market and an increase in forced sales and repossessions. This could result in prices falling further, possibly by another 10 to 15%,’ she added.

When it comes to emerging markets the picture looks brighter. Property prices in Turkey have remained static and the market is still buoyant with new developments continually being launched.

Although Turkey is keen to the join the European union and analysts have claimed that membership will boost the country’s real estate market it is Turkey’s current position outside the Euro zone that makes it attractive to property investors, especially from the UK, according to Robert Nixon, executive director of Nirvana International.

‘We have seen a continued interest in property in Turkey from UK buyers. I think this will carry over into the second half of 2009, as investors continue to look for value for money and to markets that are sound investment prospects,’ he said.

‘It is likely that Istanbul, in particular, will be the focus of attention towards the end of 2009 as the city is gearing up to be European Capital of Culture for 2010. Brazil as another example. It is a country that has been less affected in economic terms than many nations. President Lula da Silva’s $15.1 billion programme to build a million affordable homes has boosted confidence, according to Samantha Gore, head of sales and marketing for Brazil experts uv10.

‘The Brazilian property market never really slowed down as much as elsewhere and has been somewhat insulated from the global recession. Major Brazilian construction companies are right now showing good profits, in contrast to the mass bankruptcies in countries like Spain,’ she said.

She said the beginning of 2009 was quieter but foreign property investors are now returning. ‘The overseas buyer is back out in force but more discerning than before about quality and also location. For us the outlook for 2009 is very bright, particularly as the UK and US economies appear to have reached some kind of bottom and confidence is returning to the market,’ added Gore.

Also the fact that it has just been confirmed that Natal is to be a host city for the 2014 football World Cup will boost interest in the north east of Spain from property investors.

Spain has suffered more than other property markets and many do not expect much of a change in coming months. But for those with the funds to invest their are a lot of bargains, according to Chris Mercer, founder of Mercers, who has over 25 years of experience in selling freehold Spanish properties.

‘For those in a position to buy, 2009 is going to be an excellent year. Second home hunters will be able to pick up quality property at extremely attractive prices,’ he said.

He is reporting an increased in sales inquiries from Spanish, British and other North European potential buyers but points out that this is not a general trend and applies to lifestyle buyers.

‘I doubt that this will change until the middle 2010 leaving those motivated by lifestyle as the main buyers,’ he added.

The biggest hurdle for the Spanish property market in the second half of 2009 is lack of confidence, says Andrew Benitz, founder of Titan Properties and a former research analyst with Deutsche Bank.

‘There are plenty of clients out there with both the desire and the cash to buy Spanish property, it’s just a question of restoring their confidence to spend it,’ he said.

Like Mercer, he believes that a recovery in the Spanish property market will be led by lifestyle buyers from the UK. ‘With interest rates at record lows in the UK, people with cash in the bank are now looking for alternative investment opportunities and property is at the top of the list for good quality long term investments,’ he explained.

‘Everyone wants a deal and they are around but the property bargain hunter must consider the dynamics of the local market prior to purchase. For example a 10% discount on a property in western Costa de la Luz, where median prices have yet to fall, is clearly a better deal than a 25% discount on a property in Costa del Sol, where median prices have fallen by more than 30%,’ he added.

The good news for Spain is that vendors and developers are now at least open to offers, a scenario that never occurred as little as a year or so ago. Another problem standing in the way of the British buyer is the exchange rate. ‘A stronger pound would certainly help more deals to be done and hopefully that’s not too far off,’ said Benitz.

Although the decline in property prices in Dubai seems to be slowing there is not much optimism for the market that was still booming this time last year. ‘We expect to see further downward pressure on prices and rents throughout the summer months, although the level of decline is likely to be in single figures,’ said Matthew Green, head of research and consultancy UAE at CB Richard Ellis.

One of the reasons is that interest in off plan property has all but disappeared as investor confidence has dried up and speculators have deserted the market. ‘Those few investors still in the market are now more focussed on either completed property or projects set to finish within the year,’ added Green.

A considerable volume of new residential supply is set for completion and handover during 2009; this includes 4,500 units at Executive Towers alone. ‘This level of new supply is likely to compound the already oversupplied market and hinder any potential recovery in the short term,’ predicted Green.

Raya Mamarbachi, Director of Simplyzigzag.com, one of the largest online property brokers in Europe and the UAE, agrees. ‘Dubai has been hit hard by the financial crisis, with supply outstripping demand. Foreigners and locals continue to lose their jobs, and media outlets continue to bombard readers with doom and gloom headline. This is causing anxiety and hesitation in the market. With such shaky headlines, buyers are less inclined to invest,’ he explained.

Indeed Dubai has suffered the biggest reversal among global property markets according to Knight Frank’s new global report. Residential property prices in the Emirate fell 32% in the 12 months to the end of March, compared to a rise of 48% the previous year.

Dubai is a classic case of where people are trying to talk up the market. A survey by Emirates Business published this week found that more than 80% of real estate chief executives in the UAE expect better returns in the second half of 2009.

The 17% who said they expect the second half of the year to be at the same level as the first half are perhaps those that are living in the real world.

London Calling

By Richard Warren

Overseas property buyers have rarely had it so good in Britain. Many are trawling London for bargains where developers have brought some very special homes on to the market.

It is rather like the high street sales when big red posters go up in windows emblazoned with those special words shopaholics yearn to read – ‘50% OFF’. So it goes in central London’s property market – since the start of this year the British capital’s estate agents have circumnavigated the globe to tell everyone who earns their money in euros, dollars and dirhams that the twin collapse in the value of Sterling and British property means the city’s flats and houses can be snapped up for 50 per cent less than at the peak of the property boom in the summer of 2007.

Like the queues of shoppers who camp outside Harrods overnight in freezing temperatures to be first through its doors when the winter sale begins, many overseas property buyers are eager to grab a bargain. Indeed, Harrods Estates, the estate agency arm of the London department store, says it has been inundated with Qatari buyers looking for homes around Knightsbridge since late last year. Other Middle Eastern buyers, Europeans, East Asians and British expatriates working in these places are in the market as well.

Estate agents say the biggest savings are to be found in the market for brand new homes. Developers are agreeing to big discounts, because the banks have put huge pressure on them to shift stock to improve cash flow. They are quietly accepting offers up to 30 per cent below the asking price, although they don’t like to admit it.

“With the pound languishing at record lows, the savings are significant. This is particularly true for investors looking to buy high specification new development properties in a market where the new build price premium has all but disappeared,” says Ed Lewis, head of new development sales for Savills.

“In past cycles, international investors who bought at or near the bottom of the London market have done extremely well from their investments, benefiting both from the strong price growth in a market that traditionally leads the recovery and the strengthening of sterling from its very low base.”

But it’s not just in the new homes sector where the bargains are to be found – in the market for second-hand properties vendors are more obliging than last year with many accepting offers of up to 30 per cent below the asking price.

Camilla Dell, managing director of property search company Black Brick, says bargain hunters demand big discounts whether homes are fairly valued or not. Many vendors of homes valued last year accept these low offers.

“You can get 20-30 per cent less for homes on sale at 2008 prices,” she says. “The penny has dropped. Sellers have realised that they will not get the prices they would have got in 2008 now.”

However, Dell says that some vendors who have cut the asking price to reflect the weakened state of the market are still turning down low offers and, in some cases, taking property off the market because they are fed up with the sub-standard offers they have received. Even so, investors have snapped up bargain properties quickly, so potential buyers need to act fast.

“The window of opportunity in London won’t be as long as people think,” she says. “We have started to find we are competing against other buyers, many of them international, for the same property. People sitting on the sidelines thinking they will come in later in the year may miss out.”

Russell Hunt, managing director of property finders Property Hunt, says big price cuts are possible in the middle and lower end of the market where the type of property and its location are less important than the vendor’s circumstances. Unemployment is rising across London and many people are struggling with debt.

“At the upper end of the market, some of the larger houses are achieving close to asking prices as some confidence has come back to the market,” he says. “Otherwise it really does depend on the vendor’s situation and how keen they are to sell.” But some investment specialists advise caution. Robert Hadfield, managing director of investment property management company Pineflat, says yields must rise before residential property becomes an attractive investment, so prices need to fall further. Gross yields currently stand at around four per cent.

“My instinct is that we need to get back to 2002 [price] levels before the market will be in some sort of balance,” he says.

Analysts agree London property prices will continue to fall during the remainder of 2009 and may decline further in 2010. Researchers at estate agency Knight Frank say prime central London prices have fallen 20 per cent so far and will drop at least another 10 per cent before recovering. Among the London properties purchased by overseas buyers this year are two newly-built Kensington townhouses offered for sale by their developer, Morpheus, at Dhs28 million and sold for “around” Dhs26 million. Unusual for London homes they have geothermal heating and cooling. Other eco features include sheep wool insulation, low energy lighting and double-glazing.

Over in Belgravia, developer Finchatton is marketing a six-storey house it has recently renovated. Number 63 Eaton Square is a 743-square-metre Grade II listed home with five bedrooms, a cinema room, gym, wine cellar, drawing room, dining room, library and staff quarters. There is also an informal living area on the ground floor and a double garage. In keeping with its traditional white stucco façade, much of the original carving inside has been preserved, including cornicing and chimneys. And it’s all yours for Dhs131million.

Meanwhile, a couple of minutes walk from Eaton Square in the direction of Victoria station, developer Rigby & Rigby has recently completed 31 Eccleston Street, a five-bedroom home on the market at Dhs32 million. This six-storey, white stucco townhouse features a bespoke, ergonomic kitchen designed by Johnny Grey and a lower ground floor games room complete with a 50-inch wall-mounted TV, pool table and bar. As with other homes built by this developer, the property is filled with bespoke cabinetry designed by one of the partners, Steve Rigby, including doors, tables, beds, wardrobes and ottomans.

Back up the road on the other side of Eaton Square, at Belgrave Place, developer London Projects is marketing a three-bedroom duplex filled with all manner of luxurious furnishings, including Louis XV gilt chairs, a Baccarat Mille Nuit chandelier in the entrance hall, floor-length silk curtains in the bedrooms, ebony cabinetry and tonnes of marble everywhere. How much does it cost? Dhs46.5 million.

In the heart of Bloomsbury, just around the corner from the British Museum, a Grade I listed five-storey Georgian townhouse has been converted back to residential use by its owner after being used as offices for a number of years. The Dhs79 million property on Bedford Square overlooks communal gardens owned by the square’s residents. Bloomsbury is close to Kings Cross St Pancras station, which has trains running to northern Britain and continental Europe, and the planned Crossrail route, which will connect Canary Wharf with Heathrow Airport. Therefore, property finders believe the area’s long-term prospects are promising.

If those properties sound a bit pricey, then a one-bedroom riverside flat opposite the Tate Modern art gallery and the Globe Theatre can bought for Dhs1.8 million at Sir John Lyon House. Built on the site of the former Lyons Tea warehouse, the Thames-fronting development of 67 apartments in the City of London is just a few minutes walk from St Paul’s Cathedral. Unusual for Britain, these one, two and three-bedroom homes have air conditioning in addition to central heating. Riverside Holdings is offering the flats for sale or rent.

The House Hunter

CAMILLA DELL NARROWLY FAILED TO MAKE THE APPRENTICE, NOW SHE’S A HIGH-FLYING PROPERTY MATCHMAKER

Millions of us are glued each week to The Apprentice to see who will incur the wrath of Sir Alan.

For Camilla Dell, who runs London’s largest independent property-finding agency, Black Brick Property Solutions, watching the show is a reminder of why she started her own business.

Her company, which has a turnover of £2 million, was Camilla’s brainchild, and it was her involvement with former Amstrad boss Sir Alan Sugar’s reality TV show which inspired her to set it up.

In 2004, when she was a 26-year-old working for hard-selling estate agent Foxtons, she auditioned to appear on the second series.

After four years of working through the property boom years in the ‘highly charged environment’ of that agency, the ambitious negotiator was ready for a new challenge.

After excelling at the ‘shattering yet exhilarating’ three-week selection process, she made it into the last 50 candidates of 75,000 applicants and was put on standby to be one of the female contestants.

‘As it was, I never got the phone call to appear on the show, but the experience gave me the impetus to think about how much more I could do with my life,’ Camilla says.

Her flirtation with The Apprentice also increased her worth in her colleagues’ eyes and, within a month, she had been promoted.

‘Jon Hunt (the then-boss of Foxtons) loved the programme, so whenever I came onto the sales floor he would single me out,’ says Dell.

Hunt had set up the Foxtons empire in a former Italian restaurant in Notting Hill, West London, in 1981.

He sold its 40 branches for £370million at the peak of the property market in 2007.

‘He was an entrepreneurial figure who captured my imagination,’ says Dell.

But after another year at Foxtons, Camilla was head-hunted by rival estate agency Knight Frank.

Working for its property-finding division, sourcing homes for high-net-worth individuals, she soon realised it was her personal qualities customers were responding to, rather than what the company was offering.

Camilla says: ‘I decided there was room for an independent property finding consultancy in London, and set up my business with a partner in January 2007.’

From the loft of her home in North London, she turned round £1 million in the first year, a figure she doubled in 2008.

Property-finding agents typically charge customers – who, in Black Brick’s case, are looking for a family home or an investment property in London and the South- East – a £2,000 to £3,000 retainer fee, then a 2 to 3 per cent ‘success’ fee if a deal is brokered.

They have grown in popularity because they are not beholden to any agency, and so are truly acting for the buyer.

Earlier this year, Camilla moved to an office in Bruton Place, Mayfair, Central London, and has a staff of six, five of whom are women.

So do women make better property-finding agents? ‘Yes, they are much better at empathising with both sides in a situation, whether buyer and seller at the negotiating table, or husband and wife deciding on the ideal home,’ she says.

‘Buying a home is an emotional transaction.’

The other qualities Camilla thinks are essential in a buying consultant are patience, good contacts, market knowledge, a head for numbers, attention to detail and tenacity.

They are just the sort of qualities that would no doubt have impressed Sir Alan had she made it onto The Apprentice.

Camilla’s verdict on the London market

  • Prices are down 20-30 per cent from the peak of the market, which was March 2008 in London.
  • But has it reached the bottom? Not necessarily, though the past two months have seen a big increase in activity – and the reappearance of gazumping.
  • Who’s buying? Foreign buyers for whom the weak pound is attractive; plus buy-to-letters: yields of 4 per cent a year make buying a property to rent out more profitable than putting your money in a bank.
  • Properties selling best are those in prime areas – Kensington, Chelsea, Mayfair, Notting Hill, St John’s Wood – especially those located near to the parks.
  • Those that aren’t selling are those stuck at last year’s prices. Be realistic: pricing is key!

… And prospects elsewhere?

  • Green shoots? Hometrack’s latest Monthly National Housing Survey, reports a 19 per cent increase in the number of sales agreed in March – up from MINUS5 per cent in January. The biggest regional increase was in East Anglia, followed by the South-East.
  • How do you ascertain if property is valued accurately? James Greenwood, of Stacks, the nationwide property-finding agency, suggests subtracting 35 per cent from a comparable property’s value in 2007. ‘There’s a lot of game-playing going on, so abandon your innate Britishness and bargain like you are shopping in a Turkish bazaar,’ he says.
  • But where are the hotspots? email4property.co.uk – the UK’s largest network of local estate agent websites – reports most interest being shown in Nottingham, followed by Liverpool, Bristol, Cardiff and Birmingham. Affordability is key in these areas. In Nottingham, the average price is £91,336.

Looking for a new home? Then do your homework

Falling valuations and desperate owners all point to property bargains. But, Graham Norwood reports, canny buyers can cut the price further.

Easter week is the traditional start of the house selling season but although prices are falling and many owners are desperate to move, professional buying agents say purchasers can get even better deals if they do their homework. ’Abandon any polite Britishness and treat the process as a hard-nosed business deal,’ is the advice of Charlotte Walker of Stacks Property Search.

She says you can see if a property is over-priced by asking a local estate agent what it would have sold for at the peak in late 2007. ’Subtract 30% to 35% or compare the price directly with values in 2004-05 where there should be parity,’ she says. ’Then look at things you’re going to have to do once you’ve moved in. Use them as a negotiating tool or suggest the vendor fixes any problems. Do this on a room-by-room basis. Take a notebook and camera and be methodical.’ Researching the reason behind the sale is vital. ’Ask the estate agent ’why is the vendor selling?’ and ’what’s the timeframe?’’ says Caroline Takla of buying agency Black Brick. She says sellers who are divorcing, or have a place to move to urgently, or have children who need to be in a school catchment area will be more willing to drop prices sharply to clinch a deal quickly.

It takes an average of 12 weeks and 13 viewings for a home to get a buyer now according to the Hometrack consultancy, and asking prices are 15% to 30% down depending on the area. Sellers know this, so should be flexible on price. So how can ruthless would-be buyers get the best possible deal? Buying agents are hired to locate suitable homes and negotiate a good price. They use a rigorous checklist and if they spot a problem, they go for the jugular.

Inside Kitchens: Are there leaks near the sink, dishwasher or washing machine? Check the ceiling for marks as the kitchen is usually just below the bathroom. Also check the water pressure is OK in the taps, particularly if the kitchen is on an upper floor or in a high-rise apartment.

Bathrooms: Get in the bath and check if it then separates from the seal. If the boiler is new, see a guarantee. If not, ask about service history (it must be checked annually). If it’s old, cut your offer by the cost of a new one.

Bedrooms: If you see blankets, hot water bottles and so on, the room is cold. Why?

Living rooms: If there’s a wooden floor, check to see whether it’s noisy. And does it contravene the lease in a flat? Ensure carpets and lights are included in the sale if you want them. Where there’s a chimney check the brickwork – black marks suggest the flue is damaged.

Staircase: Send someone upstairs and check for vibration or weakness.

Outside Brickwork: Any cracks? Is repointing required? Windows: Ask for guarantees if they have been replaced.

Roofs: Are they sound? Slate tiles usually last 15 years and a flat roof needs replacing after just seven years.

Gutters: If they’re blocked, water may well have penetrated the brickwork. If you see a problem but still want the property, set an ultimatum. ’Get the vendor to pay for and fix it or at least an undertaking that everything will be corrected prior to completion,’ says Richard Marsh of Property Vision.

If the seller refuses to do the work, it probably means he or she is hard-up and needs to move fast. ’This tells the buyer that they’ve room to negotiate hard,’ says Mark Parkinson of Middleton Advisors, another buying agency. Negotiate hard is exactly what public relations consultant Lana Wilson did when she bought a four-bedroom Victorian end-of-terrace house in Hackney, London, in February. ’I short-listed three streets in Hackney where I wanted to live, and as a house there came on the market I checked its historic prices with Land Registry data. Then I spoke with different agents to see if they thought the price was fair,’ she says. She viewed each property, finally putting in an offer on one home that was well below its 900,000 asking price. ’My offer was rejected so I just walked away and didn’t try to negotiate. Two months later the estate agent came back and said the vendors were interested. But by that time prices had fallen further, so I recognised the sellers were probably desperate to move. I finally got it for

750,000, which was only a little more than it sold for several years ago,’ she says. Wilson also did two things that are considered critical in securing a lower-than-expected purchase price – she researched nearby sales and sorted out her finances so she could faithfully tell the seller she was ready to move quickly.

Websites such as mouseprice.com and houseprices.co.uk show recent local sales, providing hard evidence to show an estate agent and seller when you make a bid. ’Vendors would much rather accept an offer from a credible bid than someone just throwing in a low offer with no research,’ says Philip Selway of The Buying Solution.