Indian buyers pouring money into expensive London property

By Isabelle Fraser

Indian buyers are pouring into central London’s lethargic high-end property market after a change to how much money they can take out of their home country.

Buying agency Black Brick said that 13pc of sales it has done this year have been to Indian buyers, up from 2.6pc in 2015/16.

Separate research by Cluttons found that between August 2016 and July 2017, Indian buyers accounted for 22pc of the sales in prime central London, made up of the City of Westminster and Kensington and Chelsea, up from 5pc in 2012.

This is partly due to changes in the Reserve Bank of India’s regulations of how much money can be taken out of the country. The so-called liberal remittance scheme was adjusted in 2015, meaning that a family of four can take out $1m, while previously it was only $400,000. Camilla Dell, managing partner at Black Brick, said: “It means that a family of four, after one year, will have $1m to spend, and after two years $2m. It quickly adds up, and explains why a lot of our Indian clients are buying in the £1m to £2m range.”

Property in central London is very attractive to foreign buyers as prices have been falling due to an oversupply of luxury flats and affordability issues. Prices of these luxury homes are 15pc lower than in September 2014, according to Savills. Coupled with the fall in sterling, some international buyers can buy homes for less than they could two years ago.

Black Brick’s Indian clients are split between investors, who largely want to buy new build flats in Shoreditch and White City, and owner-occupiers looking in Mayfair.

Becky Fatemi, managing director of estate agency Rokstone, agreed: “The most popular address for Indian buyers is Mayfair – where the most sought after addresses are Grosvenor Square, South Audley Street and Hill Street. The other alternatives for them are St James’s and Belgravia.” Ms Dell added that she is currently working with a Bollywood actress to buy a London home in Marylebone, Knightsbridge or Mayfair.

According to Black Brick, other big international buyers include those from the Middle East, France, Nigeria and Russia.

 

Bag a bargain in Belgravia

Average house prices in the prime London area top £2m but are 14% off their peak

Elizabeth Street, Belgravia © Grosvenor

By George Hammond

Next month, Elizabeth Street in Belgravia will get dressed up for Christmas. There is a popular Christmas market and, as part of the yuletide festivities, local boutiques will deck their shopfronts with winter finery, baubles and twinkling lights. Local estate agents don’t tend to take part, but as expensive as the offerings in their windows are, they might still offer buyers the chance to pick up a cut-price high-end item this December.

In this part of Belgravia — a super-prime neighbourhood bounded by Knightsbridge, Chelsea and the Queen’s back garden — transactions have been sluggish and prices are 14.5 per cent below their 2014 peak. “Now might be a good time to put in a cheeky offer,” says Camilla Dell of Black Brick. “Christmas can be a great time to buy,” she says, “because a lot of sellers who’ve had their houses on the market [for a while] want to get it done, and start the year afresh.”

In 2014, before stamp duty raised the tax bill on houses priced over £937,500, homes in Belgravia were selling within a few weeks of listing, says Dell. “Fast-forward to today and things are taking 12 months to sell,” she says. “Elizabeth Street is no different, regardless of a fun little Christmas market.”

In fact, the difference in the number of days between listing and exchange may be overstated, with LonRes figures suggesting houses sat on the market an average of 153 days this year, compared with 143 days three years ago. What has undergone greater change is the proportion of properties reducing their prices to encourage a sale: that accounted for 43 per cent this year, compared with 28.6 per cent in 2014, according to LonRes data.

Over the year to September, local prices fell 5.1 per cent, but the market seems to be bottoming out, with Savills recording a modest 0.8 per cent dip in the last quarter. “My sense is that we are near the bottom of the curve in Belgravia,” says Stuart Bailey of Knight Frank’s Belgravia office. “It has taken two years to get here, but some properties in Belgravia are now blatantly good value.”

Still blatantly expensive, though: over the past year, the average sale price for a flat in Belgravia has been just under £2m, according to property website Zoopla. Savills’ forecasting also assumes the bottom has been reached, with the agency predicting growth in prime central London of 20.3 per cent to 2022. The number of transactions has been increasing, to 88 in the year to September, from 82 the year before. While that’s some way off the 126 recorded in 2015, even a tentative rise is cause for optimism among agents. Independent property consultant Jeremy Davidson says the total number of transactions may be higher than the recorded figures, because many local homes can be sold off-market. Belgravia is “probably the one area where [such] things happen without too much fanfare”, he says.

Around half of all buyers are from overseas, says Richard Gutteridge, director at Savills’ Sloane Street offices. “Belgravia definitely has taken top spot for overseas family destination, if you have the budget to match,” he says. The grand squares and mansion blocks that characterise Belgravia are the legacy of 19th-century master builder Thomas Cubitt, who developed the neighbourhood on swampland owned by the Grosvenor Estate. At the pub on Elizabeth Street which bears Cubitt’s name, diners tuck into platters of rock oysters for £30 a dozen. A few doors down, Fox Gregory is marketing a three-bedroom house for £6.95m.

The Grosvenor Estate still manages much of the area, trying to maintain a village ambience in the central London neighbourhood, where 57 per cent of the housing stock is pre-1900. Butlers and Bentleys abound on Eaton Square, one of the UK’s most expensive streets. Houses here average £17m, according to Lloyds. On the square, Strutt & Parker is selling a five-bedroom lateral flat with tennis court access for £27.5m. In the square’s communal gardens, “ball games, bicycles or other noisy activities” are forbidden.

The peace is only disturbed by the low rumble of a Rolls-Royce kicking into life. As well as serenity, the area is highly valued for its security, according to Richard Barber, director of residential agency at LLP. Although the borough of Westminster has London’s highest crime rate, the ward of Knightsbridge and Belgravia sees a vanishing fraction of it. Of 4,192 offences across the borough in January, fewer than 100 occurred in the area.

The average sale price in Knightsbridge and Belgravia was more than £2,000 per sq ft in the year to the end of May Journeys to the City of London take about 18 minutes from Victoria Underground station Elizabeth Street hosts its Christmas market on Sunday, December 3

Buying Guide

  • The average sale price in Knightsbridge and Belgravia was more than £2,000 per sq ft in the year to the end of May
  • Journeys to the City of London take about 18 minutes from Victoria Underground station
  • Elizabeth Street hosts its Christmas market on Sunday, December 3

What you can buy for…

£1m A one-bedroom

£5 A two-bedroom garden flat on Eton Place

£28 An eight-bedroom terraced house on Chester Square

 

 

Tech firms buoy up property in Silicon London

Tech firms buoy up property in Silicon London

Areas of the capital that attract international companies could see distorted price rises

Google’s proposed King’s Cross Campus © Hayes Davidson

Although estate agents are not usually known for their understatement, following three years of price falls in London’s prime housing market, many have been uncharacteristically cautious about the prospect of short-term growth. In September, the prices of central London’s most expensive homes — those above £5m — had dropped 15 per cent in three years, according to Savills.

This makes a recent forecast from Kay & Co all the more surprising. The estate agent claims that certain pockets of the capital could see “a surge in property prices of up to 60 per cent in five years”, thanks to the expansion of global tech companies.

This year, Facebook took up residence in new headquarters at One Rathbone Square, close to Tottenham Court Road in Fitzrovia, and Snap, parent company of the social media platform Snapchat, signed a decade-long lease on 7-11 Lexington Street in Soho. Google is expanding its presence in nearby King’s Cross, Twitter has established European headquarters in Soho and Instagram has set up shop a short walk away in Covent Garden.

“Tech giants are choosing to move their international headquarters [here], ramping up their investment in the UK,” says Martin Bikhit, Kay & Co managing director. “Fitzrovia is fast becoming a creative tech hub.” Despite a relatively high living cost in London compared with many other tech cities, Kay & Co points to sterling weakness as a lure for companies previously put off by the relocation costs. The agency also cites the strength of London’s universities, the area’s proximity to the City of London financial centre and a recent government pledge to invest £1.9bn in cyber security and a further £1bn in faster broadband.

The limited supply of new homes in Soho, Fitzrovia and King’s Cross — despite the new 2,000-unit development — will cause price rises, says Bikhit. “They’re slap bang in the middle of town; there’s only so much you can do. There is Rathbone Square, and some more boutique developments as well, but you’re not going to have oversupply because of the nature of the area.” At Rathbone Square, a 142-unit development, Savills is selling a two-bedroom penthouse with a roof terrace for £3.39m. Between Fitzrovia and King’s Cross, on Drummond Street, a three-bedroom home is available for £1.25m through Frank Harris & Co.

Camilla Dell, managing partner of property consultants Black Brick, thinks the effect of the tech companies on London’s property market has already been felt.

“Once all the companies are in, it’s too late,” she says.

The light and spacious approach to work spaces at Google, London © Getty

Google first announced its move to King’s Cross in 2012; Facebook has had a presence in the capital since 2007; Snap — though making its first foray into London — brings a modest 300 staff.

The average price of a flat in Fitzrovia, Bloomsbury and Soho has grown 52 per cent in the past five years, according to Kay & Co. At £3,177 per square foot, a three-bedroom flat on Soho’s Sherwood Street is bringing the average up. The £5.3m property, for sale through Dexters estate agents, comes with a 24-hour concierge. Over the same five years prices in King’s Cross have grown 48 per cent.

At the start of the millennium King’s Cross had a reputation for drugs and prostitution; today, three-bedroom apartments in the newly-built Plimsoll Building begin at £1.8m.

Despite the price rises, properties in King’s Cross are selling — in the second quarter of 2017, 53.7 per cent of properties sold had been on the market for three months or less, compared with 25.4 per cent for the rest of central London, according to Kay & Co.

Whether properties can maintain that growth and continue to sell is less clear. Savills anticipates prime home values will increase by around 10 per cent over the next five years across some London boroughs.

 

Three-bed apartments in the newly-built Plimsoll Building begin at £1.8m © Philip Durrant

Lucian Cook, head of residential research at Savills, agrees that London’s new arrivals may push values up, but is more circumspect about the extent to which they will do so.

“I suspect that having higher-value employers taking commercial space will underpin prices, but not growth [of 60 per cent]”, he says. The London market is already “pushing the limits” of mortgage affordability.

And affordability is the key issue. In King’s Cross, the average asking price of a two-bedroom flat is just over £1m, according to property website Zoopla.

A 60 per cent increase would take that figure to £1.6m. Glassdoor, the recruitment website, estimates the average base salary of a software engineer at Google to be £61,210 — almost double the median for inner London. This means that by 2022, a pair of young Googlers hoping to settle locally — taking home a combined £135,000 at current rates of growth — would still need a deposit of about £1m to make their mortgage stack up, providing they could get a 4.5 times salary mortgage. Even so, the couple would find King’s Cross more manageable than Soho or Fitzrovia, where prices for a two-bedroom flat already average more than £1.5m.

A lunchtime drink at Canopy Market © John Sturrock

The number of property transactions in London has fallen by 13.5 per cent since the 2014-15 tax year, according to Land Registry data. Many would-be buyers have been deterred by political uncertainty and high stamp duty, says Dell, who thinks the short-term beneficiaries from the new tech arrivals are likely to be landlords looking to rent units out.

Though increased rental demand should put upward pressure on yields, overinflated rents may alienate would-be residents. An example of this can be seen in the area around Silicon Roundabout — another of London’s tech hubs — which encompasses the City, Shoreditch and Angel. It has been home to a cluster of tech enterprises since 2009, with around 45,000 people employed locally.

As tech companies have moved in, local prices have rocketed — by some 124 per cent over 10 years in Hackney — and many people working in the area are now priced out. UHY Hacker Young, the accountants, reported last year that new company registrations in the area were less than 20 per cent of what they had been in 2014, down from 15,620 to 3,070. The firm identified soaring rents as key to the decline.

Where to buy for wild swimming, rowing and fishing on your doorstep

Where to buy for wild swimming, rowing and fishing on your doorstep

All aboard: Olympic Rower Ben Hunt-Davis and his family’s nautically themed London apartment CREDIT:DAVID ROSE

By Nicola Venning

30th October 2017, 6am

Having a home near the water has always been important to Ben Hunt-Davis. The Olympic rowing champion, who won gold at Sydney in 2000, currently lives in a five-bedroom apartment moments from the Thames in Barnes, south-west London, with his wife, Isabella, teenage daughters, Sofia and Julia, and younger son, Luca. Living in this corner of Barnes has given Hunt-Davis year-round access to the Thames from nearby Hammersmith Bridge. “I have a kayak in my garden and can take it down to the river whenever I want. My daughters currently row and I often go out with them.” The family’s top-floor apartment, which has a vast open-plan kitchen/living room with a high vaulted ceiling, a roof terrace and a communal garden, is on the market for £1.65 million with Carter Jonas.

You don’t need to be an Olympic rowing champion to enjoy an active riverside lifestyle. Living by the water’s edge, or at least near it, allows residents to dip their toes into all sorts of water-based activities that can be enjoyed year-round.

He is planning to upgrade to a house and stresses that it will, once again, be near the river. “I love being close to the water, having spent a lot of time on it,” says Hunt-Davis, who co-founded the performance consultancy Will It Make The Boat Go Faster? and works as a motivational speaker. “You get an amazing sense of space.”

Living in this corner of Barnes has given Hunt-Davis year-round access to the Thames from nearby Hammersmith Bridge. “I have a kayak in my garden and can take it down to the river whenever I want. My daughters currently row and I often go out with them.” The family’s top-floor apartment, which has a vast open-plan kitchen/living room with a high vaulted ceiling, a roof terrace and a communal garden, is on the market for £1.65 million with Carter Jonas.

You don’t need to be an Olympic rowing champion to enjoy an active riverside lifestyle. Living by the water’s edge, or at least near it, allows residents to dip their toes into all sorts of water-based activities that can be enjoyed year-round.

“There is an absolute attraction to being by the water and buyers have always loved living next to a river or the sea,” says Ed Heaton, founder of Heaton & Partners, a buying agency based in London and Newbury. He regularly receives inquiries from buyers looking for homes with a mooring. Fishing rights are also “much coveted”, he adds. “The opportunity to step out of your back door and cast a fly over a resting trout is one most fishermen can only dream about.”

A niche but growing area is wild water swimming – whatever the weather. “I’ve come across a few homes where the owners like to swim in their lake every day,” says Heaton. Such water babies might be tempted by Howells Barn, a five-bedroom converted Cotswold stone barn within the 550-acre Lower Mill Estate Nature Reserve near the Gloucestershire village of Somerford Keynes. The house (one of just two on the estate that can be bought as a principal private residence) comes with a swimming pool as well as access to a large lagoon – perfect for that early morning dip. There is also an airy lakeside cabin, should you need a rest afterwards. It’s on the market with Knight Frank for £1.95 million.

Splashing out to splash about doesn’t come cheap. Premium homes – those with a price tag of £2 million or more – on the waterfront tend to be 81 per cent more expensive than a neighbouring property without a river or sea view.

Splashing out to splash about doesn’t come cheap. Premium homes – those with a price tag of £2 million or more – on the waterfront tend to be 81 per cent more expensive than a neighbouring property without a river or sea view, according to Knight Frank.

Even the risk of flooding, which would deter most buyers, is overlooked in particularly desirable areas such as Henley-on-Thames in Oxfordshire and Marlow in Buckinghamshire, where “a buyer will still pay a premium,” says Heaton.

Such is the demand that in London, tens of thousands of homes have been created along the 27-mile stretch of the Thames. “The river was a very undeveloped area and there was a lot of land available to build on,” says Caspar Harvard-Walls, a partner at Black Brick buying agency. “And there is something iconic about living over the Thames.”

Not that riverside living is one big regatta. Overbuilding and a lack of transport have led prices to dip on some waterfront developments, while some schemes “can feel quite soulless if the developer has not allowed for commercial space such as cafés and restaurants,” says Harvard-Walls.

One development that will benefit from both transport facilities and social amenities is Royal Docks West, a new apartment block from Mount Anvil in east London, between the O2 Arena and ExCeL London. The 19-floor tower – one of many regeneration projects in the area – has 105 homes ranging from studios to three-bedroom flats. It is moments from Royal Victoria DLR station and not much further from Custom House station, where Crossrail is due to begin next December.

And, of course, Royal Docks West is next to an inlet of the Thames, where locals can enjoy a small beach as well as rowing, kayaking, open-water swimming and even wakeboarding. Serious water enthusiasts can catch the Emirates Air Line cable car over the river and then jump on the river bus to work.

“Rather than sit on a hot, stuffy Tube,” Heaton says, “it is so much nicer to go up the river.”

Mum and Dad rent a different class of digs

Mum and Dad rent a different class of digs

This three-bedroom apartment at Centre Point Residences in New Oxford Street, London, is £1,700 a week with CBRE

By Carol Lewis

This three-bedroom apartment at Centre Point Residences in New Oxford Street, London, is £1,700 a week with CBRE.

The average cost of student digs across the country is about £88 a week, although in some areas of London parents are paying almost 100 times that to secure the best luxury accommodation for their offspring.

James Thornett, the head of lettings at CBRE Residential, says that parents are paying up to £7,000 a week for “super-top end” three to five-bedroom apartments with a concierge, gym, spa and games room. This year 42 per cent of the estate agency’s lettings in Covent Garden have been to students — compared with 21 per cent last year.

“Many are postgraduate students studying business or management at the London School of Economics or University College London. Two thirds of them are from overseas and will have funds from mum and dad. They are security conscious and tend to want to live in a secure part of town with a 24-hour concierge. They are looking at super-prime properties — a far cry from the stereotypical student digs,” he says.

Thornett says that 10 to 15 per cent of the wealthy students he rents to will not have visited the property before they arrive for university, either trusting in virtual reality or video tours. “Often they will pay the whole year’s rent in advance to secure the tenancy and it is usual to start paying rent in June even though they won’t arrive until September for the new term — such is the competition for the best places,” he says.

Often students will want new-build properties or newly renovated places and some will request a “nanny annexe” in which a bodyguard can live. This is despite the increase in private student halls, many of which offer students a higher quality of digs than seen before. According to the website Accommodation for Students, 287 private halls opened in Britain this year, with students in London paying £264 a week on average, or £129 a week for private rental accommodation. Zone 1 is the most expensive area with an average cost of a studio in private halls of £429 a week. The average weekly rent for all properties within Greater London was £395 in September according to Countrywide, the estate agency.

Last month one student accommodation provider, Hello Student, announced that it was teaming up with the Conran Shop to offer luxury furnished “executive studios” to students in Cardiff costing from £233 a week.

Yet despite the high rents some parents are paying there is a lack of property available to students. “Some landlords are cautious about renting to students but we have to think beyond [the 1980s sitcom] The Young Ones image of students partying every night and ruining the place. They tend to leave the place immaculate and rarely, if ever, do we have to deduct anything from the deposit,” Thornett says.

A two-bedroom flat at Merano Residences, on Albert Embankment in London, is to let for £1,125 a week with CBREA two-bedroom flat at Merano Residences, on Albert Embankment in London, is to let for £1,125 a week with CBRE.

Other areas of London popular with wealthy students include South Kensington, near Imperial College London and the Royal College of Music, and St John’s Wood and close to Regent’s Park for the London Business School.

Camilla Dell, a managing partner of Black Brick, a buying agency, says that she has seen an increase in international rental tenants including students. Many have decided against buying because of the increase in stamp duty, the abolition of capital gains tax and inheritance tax breaks for foreign buyers, and the uncertainty caused by Brexit, which means families are less sure that their children will live and work in London after graduating than they were before the referendum.

She says that most of her clients are looking to spend between £700 and £1,000 a week, with safety the key concern — so a 24-hour concierge or porter is a must-have. They also tend to want a one-year tenancy with the option of renewing for the final two years of their course.

Martin Bikhit, the managing director of Kay & Co estate agency, says: “We have seen a spike this year in wealthy students renting, but also in parents buying for their children. Often they are planning years in advance, buying property three to four years before the children need it and renting it out in the meantime. They will buy two to three-bedroom apartments so that siblings can share. Marylebone is particularly popular for its proximity to the London Business School and London College of Fashion. They tend to spend from £800 a week upwards on rent.”

Thornett says that, of his clients, 80 per cent of parents will pay for children to rent while the rest will buy for them. “More than a couple of times we have had parents plan for children who are eight or ten years old. They are buying property for the child to live in in ten years’ time. They treat it as an investment. There is also a small percentage who will start out renting and will then buy.”

Chambers High Net Worth 2017 guide lists Black Brick

Chambers High Net Worth 2017 guide lists Black brick

Black Brick is proud to be featured in the Chambers High Net Worth 2017 guide, as a professional adviser in the buying agents section of its UK chapter. Chambers, which researches and ranks the world’s top lawyers, last year launched its first guide aimed at the international private wealth market.

The guide will be used by family offices and professional advisers to wealthy individuals, providing objective guidance on an international scale. It is based in independent research, conducted by a dedicated team of private wealth researchers. Our inclusion is another stamp of approval from a trusted and highly regarded source.

Overview & History: Black Brick was founded in January 2007, when Managing Partner Camilla Dell saw an opportunity to create a holistic property consultancy company with services including property buying, investing, managed sales, property management, rental search and a vacant property care service, whose unique and relentless approach could give its clients a distinct advantage. Since then it has grown from being a two-strong team operating out of a loft in London’s South Hampstead, to one of the leading independent buying agencies, operating across London, the South East and the Home Counties.

Black Brick is now based in Mayfair and has a seven-strong team of property consultant professionals, carefully handpicked from across the industry for their depth of experience, specialist insight, valuable network of contacts and proven negotiation skills. Collectively, Black Brick have accumulated more than seventy years’ experience, and in the last 10 years, have successfully sourced and acquired over £0.7 billion of property for its clients, ranging from the £500,000 to £50 million.

 

 

DEBATE: In light of the results of the latest RICS survey, is the London housing bubble slowly deflating?

In light of the results of the latest RICS survey, is the London housing bubble slowly deflating?

By City AM Friday 15 September 2017 4:05am

Camilla Dell and Bruce Dear

Camilla Dell, managing partner at Black Brick, says YES.

The difficulty with surveys, whether they are from RICS, Nationwide, Halifax or others, is that each one is based on different sets of data and as such they can conflict with each other.

The London property market has been significantly affected by Brexit and the 2014 changes in stamp duty, particularly for higher value properties in prime central London. Knight Frank and Savills recently reported that prices have bottomed out, following reductions of up to 15 per cent across prime central London.

The biggest impact on the prime central London property market has been that many who own property don’t have to sell, and therefore we have see a reduction in volume and supply. This has supported prices in London.

However, the sign of a healthy market is the volume of transactions as opposed to the values, and this has certainly reduced in recent years. Uncertainty is expected to continue as we journey through Brexit and stamp duty land tax remains unreformed.

Read moreShould we brace for falling house prices?

Bruce Dear, head of London real estate at Eversheds Sutherland, says NO.

Normal bubbles deflate, but the London housing market is not a normal bubble. It is an iceberg made of ultra-low interest rates, global capital inflows, and constrained supply.

True, there have been adverse signs: Foxton’s profits falling and deals for £1m+ homes stalling. But this “priceberg” will not shrink significantly without a substantial economic shock or material hike in interest rates.

Even with Brexit, neither looks immediately likely. Interest rates are at a 320-year low, making ultra-cheap mortgages.

Help-to-buy buoys the capital’s sub-£600,000 market.

Weak sterling, and some modest price falls, still give enthusiastic overseas buyers up to 25 per cent discounts on London homes.

Underlying all is a structural shortfall: every year we build about 20,000 fewer homes than London needs. This market is not deflating. It is going into a long term zombie high-price freeze.

London’s housing market is becoming Tokyo-on-Thames.

Read moreDouble, double, London house prices bubble?

 

Black Brick signs top negotiator from Marsh and Parsons

New recruit Alex Oliver joins from M&P’s Notting Hill office

by PrimeResi September 14, 2017

Black Brick has bolstered its buying team with the hire of a top negotiator from Marsh & Parsons.

Alex Oliver has joined the Bruton Place-based agency as a buying consultant, after a successful stint at M&P’s Notting Hill office, where he was their highest-performing sales negotiator. He spent a couple of years at Foxtons before that, and has sold in excess of £50m worth of property to date.

Now nine-strong, the Black Brick team tripled its turnover in 2016 to hit £3m, and we hear there’s plans for further expansion in the coming months.

Camilla Dell, Managing Partner: “We are delighted to welcome Alex to the team. As a boutique company, we work on a one to one, bespoke basis with our clients and Alex’s knowledge, expertise and personal approach is the perfect fit for our company ethos.”

How I Made It

How I Made It

Camilla Dell

The Sunday Times

DIVING INTO THE PROPERTY GAME WAS BIG GAMBLE

House hunting for wealthy business people and foreign multi-millionaires is no easy job. One couple wanted a £10m house perfect for a chihuahua, “with no balcony and the right outside space”, while some superstitious buyers would only consider addresses with numbers “that didn’t mean death”.

It pays well, though. Camilla Dell’s property agency, Black Brick, which she set up in 2007 using £20,000 of savings, made a pre-tax profit of £1.6m on sales of £3.1m last year.

After working for the upmarket estate agents Knight Frank and Foxtons, Dell decided that finding homes for a fee could work as a standalone business, rather than just being a service offered by the chains.

Black Brick helps investors and companies, as well as individuals, find homes in London and southeast England, negotiates a price, and closes the deal for them. It does not own properties, or handle the listings.

Dell recently helped a member of a Middle Eastern royal family to buy a £55m mansion, and a Bollywood actress has just signed up for her services. It is not just the super-rich who come to her, though. Recent buys include a two-bedroom flat costing £374,000.

About 60% of customers are from the Middle East, Russia, India and America. Critics have accused property buying agents of fuelling the surge in so-called ghost homes in London. Last week the mayor, Sadiq Khan, called for local authorities to be able to raise the council tax on properties left vacant.

“There’s a misconception that buying agents are only for the very wealthy and for people who are going to buy homes here and leave them empty,” said Dell, 39. “We’ve got our oligarchs, but we’ve also got very normal people.”

She said that less than 5% of the properties bought by Black Brick were ghost homes. “We’ve never been a volume business. We don’t have to pump out hundreds of deals to survive.”

Clients pay an upfront, one-off registration fee of £3,000. If Black Brick seals a deal, it gets 2.5% of the final price or 20% of what it manages to save customers by negotiating a lower price.

Dell, the managing partner, grew up in Hampstead, northwest London, as the youngest of three children. Her father, a property developer, died when she was 9. Her mother, an Israeli former model, was a “lady of leisure”.

Dell was a boarder at Cobham Hall, a private girls’ school in Kent. She qualified as a scuba-diving instructor at 18 and studied marine biology at Newcastle University. Once she graduated in 1999, she worked behind the scenes at the broadcasters Tyne Tees and Granada. After a year she moved to Egypt to teach scuba diving, but returned following the 2001 terrorist attacks. “The number of tourists just dropped off,” she said.

Dell spent the next six years climbing the ranks at Foxtons and Knight Frank before striking out on her own, not without some trepidation. “I had sleepless nights setting up Black Brick and coming off the payroll.”

She started hiring after six months and by the end of the year had tied up sales of £1m. Today the business, based in Mayfair, has nine staff. Dell is the sole owner, and does not rule out an exit if “someone makes an offer you can’t refuse”.

Dell lives in Hampstead with her husband, Jeremy, 49, and daughters Sydney, 5, and Sukie, 2. Her advice for new bosses is to put in long hours: “I don’t believe in shortcuts. You have to learn and understand your industry.”

Four beds good, five beds bad.

Four beds good, five beds bad.

THE GUIDE

Jayne Dowle

Unable to sell your home? Some families do not want five or more bedrooms

People swoon when you tell them that you’re selling a five-bedroom house. How lovely, they say. Think of the space for children, the potential for guests. However, Britain’s “ideal home” for buyers now has just 3.5 bedrooms, according to the property website Zoopla. With the market in some areas almost static, sellers are forced to face a counterintuitive fact: abundant bedrooms can be a curse.

Would a four-bedroom-plus-study property sell better than a five-bedroom family home? Yes, says Anne-Marie Desborough, of Dexters estate agency in Richmond upon Thames. “I would say that the optimum number of bedrooms is three or four. Your average Richmond family has two children, so five or six bedrooms seems a little wasteful.”

Hugh Blake, an associate partner at Carter Jonas in Cambridge, says affordability is a determining factor nationwide. “All too often, the vendors of five and six-bedroom homes are too ambitious in what they think their property is worth. In the current market overpricing is an immediate deterrent to buyers, who simply aren’t prepared to overstretch themselves.

Create a space suitable to let that can generate an income if advertised on Airbnb.

“When it comes to larger properties, the pounds per square foot value is largely determined by the first 2,500 sq ft. This is elevated by a good-sized main reception room, kitchen, and four generous bedrooms; the fifth and sixth bedrooms contribute to a fraction of a property’s overall value.”

There is also the question of perception. Are buyers really looking for a certain number of bedrooms — or rather a house of particular dimensions?

“Since all the houses now have floor plans, the gross internal floor area has become much more important to buyers than number of bedrooms,” says Giles Lawton, a partner at Strutt & Parker in Oxford. “In the old days buyers would say they wanted five bedrooms, but what they meant was they needed three rooms to sleep in and two studies, or a house of a certain size.”

So what can you do to present an “over-bedroomed” home in the best light?

Four, five or six?

You must establish what is attractive to your target buyers. As Martin Bikhit, the managing director at the estate agency Kay & Co, points out, prime central London and grander parts of the home counties still attract buyers looking for a large number of bedrooms. Stock is low, so appeal is enhanced.

He says that fewer than 30 properties are for sale in W1 with five-plus bedrooms. “When one does become available it often gets snapped up quickly as wealthy individuals seek homes that can accommodate family members and staff.”

In rural areas too, such as Yorkshire, the Cotswolds and Cornwall, agents report that farmhouses and period properties with five or six bedrooms are perennial favourites with professional families and relocating buyers.

Cedar bedroom cupboard by Plain English, from £5,000

However, in popular “town” locations, four bedrooms is optimal, five at the most. “Buyers in Oxford tend to want just one extra bedroom that can be used as a guest room, rather than lots of extra rooms,” says William Kirkland, a partner at Knight Frank in the university city. “It’s a question of balance, however. They still want space to grow as they are likely to be borrowing, paying stamp duty land tax and therefore won’t want to move for a long time if they can help it.”

Too many bedrooms? Or not enough bathrooms?

It could be that rather than having too many bedrooms, you don’t have enough bathrooms. If there is only one “family bathroom” in a five-bedroom house, it makes sense to turn the smallest bedroom into an extra bathroom or en suite. For instance, a small middle bedroom can be transformed into a super-useful “Jack and Jill” bathroom with access from each adjoining sleeping area.

“Add an actual bath if possible,” says Rupert Carr, a director at the Kensington estate agency Milton Stone.

Other suggestions include a study, or two, as more people work from home. “A spare room might also convert to a media or entertainment room, or a light room can create an excellent art studio or workshop,” says James Way, a partner at Knight Frank in

Stratford-upon-Avon, Warwickshire

Victoria Harrison, the editor of the home renovation and design platform Houzz recommends creating a yoga studio or meditation space. A gym could be a good investment, but the heavy equipment makes this best-suited to a ground-floor bedroom.

Camilla Dell, the managing partner at Black Brick, a buying agency, likes the idea of incorporating a kitchenette into a top-floor bedroom to create a contained area for teenagers. Blake adds: “We would also recommend converting a boxy fifth bedroom into a walk-in wardrobe with lighting and shelving. This may be done for less than £1,000.”

The home-search expert Carol Peett, at West Wales Property Finders in Pembrokeshire, has the ultimate solution. “If your house has five-plus bedrooms that buyers are put off by, turn this around by creating a space suitable to let and sell it as somewhere that can generate an income from advertising on Airbnb.”

Keep overall balance in your home

Open-plan living has blown apart the old theories on the most desirable ratio of bedrooms to reception rooms. However, it’s important to ensure that the flow and space available for various functions convinces buyers. To achieve this Jamie Hope, the managing director at Maskells, suggests turning an extra bedroom with decent proportions into an elegant first-floor drawing room.

Or follow the new-build sector and consider creating a family room, as Neil Simpson, the sales and marketing director at Bewley Homes, suggests: “Homeowners [want] to utilise upstairs bedroom space as dedicated family or play rooms. This is so much the case that one of our house types in Witney, Oxfordshire, features a large first-floor room dressed as a family room, but it could just as easily be utilised as a master or twin bedroom.”

Bear in mind the arrangement of rooms. If you wish to keep a guest room, is it in the right place? “Ideally the master needs to be close to the children’s bedrooms, with number four as the guest/spare room,” says Alex Newall, the managing director at Barnes International.

Even smaller homes can suffer from bedroom issues, adds Blake. “If a three-bedroom house is sticking, it could be good to combine the second and third bedrooms into one super space.”

Must-haves to maximise appeal

Space and storage are key. “Beds have increased in size, so a master bedroom must now be large enough to accommodate a superking with ease,” says Peett. “Another reason why it can be better to knock two bedrooms into one.”

Add large wardrobes, bring in a dressing table and, if an en suite is not feasible, include a vintage washstand with sink and cupboard space instead.

Indulge at your peril

For the total wow factor it could be tempting to transform a superfluous bedroom into an open-plan master suite, with freestanding bath and lavatory.

This may be the epitome of glamour in a boutique hotel room, but it will add nothing to your home’s resale value, warns James Robinson, of the London mews specialist agency Lurot Brand. “Unless your bedroom is palatial avoid the bath in bedroom idea — and trust me when I say the only time an open-plan WC is acceptable is in a prison cell.”

 

 

 

 

London’s Residential Squares: How Much Does it Really Cost to Live There?

London’s Residential Squares: How Much Does it Really Cost to Live There?

We explore the past and future of London’s residential garden squares, how much it costs to live on one and one woman’s campaign to regenerate hers.

Words Nigel Lewis

London’s garden squares are much loved by the people who work or live around them, usually as somewhere to snatch a lunchtime sandwich or maybe to enjoy a sun-soaked afternoon.

They have cultural value too; author PD Smith recently described them as the “capital’s greatest contribution to the development of urban form” even though, technically, we stole the idea off the Italians.

The resulting 300-plus garden squares within London come in different flavours ranging from the historic, such as Grays Inn Square, to the more common Regency and Victorian ones the loveliest of which arguably are Russell Square and Soho Square.

And let’s not forget the super-prime ones; rarefied pockets of greenery surrounded by Regency splendour such as Cadogan, Belgravia or Eaton Square. And which cost millions to overlook.

“Our data shows that in the last 18 months, the average price paid per sq. ft. in Eaton Square was £4,113,” says Camilla Dell of property finding firm Black Brick.

“When we compared this to nearby Eaton Place, buyers paid an average of £2,404 per sq. ft. That is a whopping 42% premium to be on Eaton Square.”

Square Roots

Equally expensive is London’s first purpose-built garden square, Southampton Square, now called Bloomsbury Square and built by the 4th Early of Southampton during the 1650s.

“The gardens in most London squares have been for the benefit of and maintained by the residents since their inception, with evidence dating from the late-17th Century of a levy afforded upon residents for the upkeep of ‘rayles, payles, fountain and garden’,” says agent Martin Bikhit of of Kay & Co.

“In the Jane Austin novel Emma”, Mr and Mrs. Knightley are discussing the notoriously bad air in London and, when asked why they have remained near New Brunswick Street they retort that the garden square in which they live is unlike the rest of London and “so very airey!”.

And later builders in Londoners also saw their ‘airey’ plus-points. Take for example the more concrete squares created by post-war town planners. Or more recent versions, much beloved of builders these days who are often hoping to add the spice of space to their developments.

It’s not a surprise that squares should hold such enduring appeal. Since the 17th century, as London’s dirt, noise and congestion has waxed and waned, so squares have remained a tranquil place of respite.

“To have a flat or house in central London overlooking beautifully kept gardens and trees is one of the most desired amenities and therefore it is no surprise that having a view adds hugely to property values,” says Merlin Dormer of buying agency Heaton & Partners.

“Garden squares are one of the defining features of London and they also have some of the most sought-after properties, even influencing modern developments like Chelsea Barracks, which will incorporate its own garden squares.

“If you look at statistics for the highest prices paid per square foot in prime central London it is almost always a property with a green view.”

Garden Squares

Sutherland House on Eaton Square, £11.95 million with Aylesford International (020 7351 2383).

Narendra Gandi of Winkworth says that in his experience squares are treasured because they are an important way to bring residents together, whether it’s just to say hello and gossip, or to hold community summer parties.

“Given the choice of a concrete ‘jungle’ or a ‘garden square’, I know most people’s choice would be the latter,” he says.

New Squares

London’s newest one is Packington Square in Islington (pictured, below), part of a £170m development of 600 apartments by Hyde New Homes and Rydon which will see two further squares built nearby later on.

Spokesperson Minnie Dando says this development’s squares are all about community. “We have been careful to maintain the traditional community concept of the housing estate set up on the exact same spot in 1563 by Dame Anne Packington to provide accommodation for the Clothworker’s Company,” she says.

London’s most famous square residents are Tony and Cherie Blair, who live on Connaught Square in Bayswater. Opposite their house agent Marti Bikhit has a similar property to theirs for sale for £7.5 million.

“Connaught Square was the first square of houses to be built in the Bayswater area,” he says. “Named after the Duke of Gloucester – The Earl of Connaught – the square dates to the 1820s.”

Martin says Montagu Square in Marylebone is the only remaining square in Westminster which is wholly residential and has proven highly popular with US buyers who love the quintessential English architecture.

Garden Squares

But away from these bastions of wealth are less salubrious affairs, but equally of note. For example, Globe Town Market square in Tower Hamlets is unlikely to have been high on the Blairs’ wish list, but it should have been.

Nearby resident and business owner Kerry Mounsley who owns ethical clothing business Very Kerry is running a campaign to raise funds to be matched by The Mayor of London’s Crowdfund London campaign, which gives grants of up to £50,000 to regeneration projects like hers.

Kerry wants to turn the tired and usually litter-strewn area into ‘Rainbow Square’ in part by creating a multi-coloured umbrella roof for the square (see before and after pix below).

“The plan is, with the participation of locals to turn the space into a vibrant and colourful hub of community-oriented activities, as well as regaining appeal with traders and their customers, its original purpose,” she says.

But the most famous square in London has not been mentioned yet. Parliament Square. It too underwent an attempted re-birth back in 2008, just in time for plans to be scrapped after the financial crisis hit.

The planned redesign would have seen half the roundabout taken out and replaced with a Trafalgar Square-style open space that would be a “new tourist destination for London”. Sadly, the plans were never revived. Let’s hope Rainbow Square fares better.

 

 

 

 

Strategies to survive a price slowdown

Strategies to survive a price slowdown

Spooked by forecasts of a market fall? Keep calm and take the chance to find your dream home

Francesca Steele

The debate continues about the future of the housing market, with one economist forecasting disaster, while others believe that the average property price will rise this year. These predictions come as house price indices provide evidence of a slowdown. Figures released by the Office for National Statistics and the Land Registry show that average house prices rose by 4.1 per cent in the year to March, the slowest pace of growth since October 2013.

In London, particularly in the prime sector, there has been a marked shift in price gains. The most recent index from Nationwide shows annual growth falling to 1.2 per cent in the capital, the second slowest pace of the 13 UK regions and the weakest rate of growth since 2012.

Robert Gardner, Nationwide’s chief economist, says a squeeze on household incomes and the country’s uncertain economic and political outlook is to blame. Lucian Cook, the head of Savills residential research, says: “We are expecting a weaker market driven by needs-based buyers, who are less likely to compromise. The best insurance against a weaker market is to avoid properties that are blighted, for example, by road or aircraft noise, or where a garden is too small for the size of the house. I’d also recommend buying in the best location you can afford.”

Here, we list what you can do to future-proof your home in case of a slowdown.

Flight to quality Agents are seeing a flight to quality in town and the country. The properties that sell quickly do not have “abnormal quirks”, says Nick Whitten, the director of residential research at JLL, the property company. “Safer house purchases come down to the perception of an area and future stability. Factors to consider include schools, public transport, employment, vibrant local shops and services, proximity to green spaces, safety and overall attractiveness of an area.”

He says the best properties and locations are those with the broadest appeal. For example, if you move to an area because the local school is rated outstanding, what happens to your house price if the school loses that rating? “If your street is ten minutes from excellent transport links as well as a desirable school, a rating change would be less problematic,” Whitten says.

Location, location, location Whitten highlights York and Abingdon as locations where prices are likely to remain stable. Limited older and desirable housing stock, good transport links and popular shopping and cultural activities maintain the popularity of these places. Market towns and houses within easy reach of them are typically stable, even in a downturn, he says.

Ben Pridden, the residential director at Savills, agrees that York is a good location, predicting a five-year growth of 25.9 per cent despite a loss in the past three months of 0.7 per cent. “York ticks all the boxes; aesthetics, connections to London and Leeds, the northern finance centre, great schools, a university, and we even have a racecourse. It’s proved a resilient market, with a deep strand of equity, and more than half our clients are cash buyers. Being a medieval city, restricted by its old walls, York has few Georgian and Victorian streets, so homes there are always sought-after.”

Winchester and Edinburgh are other locations where demand is likely to remain high because of what is on offer, despite prices not rising as much as in the most popular markets, such as London and Oxford.

Buy in a city JLL has noticed a “trend towards urbanisation” being driven by regeneration in city centres such as Manchester, and suburbs such as Solihull in Birmingham. “Historically our biggest cities weren’t very residential,” says Whitten. “The population of Manchester city centre was about 10,000 people in 2000, and 17 years later it’s about 55,000, because so much has been built around the canals and the university. People want to be closer to jobs and culture. Whether you’re an owner-occupier or an investor, city centres feel a safe bet.”

Similarly, Solihull, listed in 2013 as the top place to live in Britain in a quality-of-life index conducted by Uswitch.com, has benefited from the regeneration of Birmingham city centre and Midlands transport improvements. Solihull railway station gets commuters to Birmingham Moor Street station in under ten minutes. JLL predicts a five-year house price growth of 28 per cent in Manchester city centre and 22 per cent in Solihull over the next five years, compared with a UK average of 13 per cent.

Depending on your budget, it may be worth considering somewhere yet to rise. Places where the transport links are nearly in place, such as Crossrail locations in and near London, are a good option. JLL predicts price increases for Woolwich in southeast London, while Jo Eccles, the managing director of SP Property Group, recommends Ealing, Acton and Northfields in west London for family homes.

“You can still buy a superb family house for less than £1 million and there are excellent state schools in the area. Once Crossrail opens, property will be in high demand here,” Eccles says.

Camilla Dell, the managing partner at the independent property buying agency Black Brick, warns about what should remain off-limits, even in up-and-coming areas. “Try to avoid flats higher than the first or second floor without a lift, ground and lower-ground floor flats, which suffer from damp or low levels of light, and properties far from public transport and shops.”

The devil is in the detail Alex Newall, the managing director of Barnes Private Office, says there is a flight towards quality, which is evident in every cycle. “Deals are still happening — we’ve just made a £30 million residential sale in central London — but buyers are less prepared to compromise. Our clients say the house must be spot-on to part with their hard-earned cash.”

The title must be “squeaky clean”, Newall says, meaning that you must know exactly what you own and what that ownership entails. “The classic error is finding the pathway you think you own is public land, or the old rectory, where you’re responsible for paying for the church roof next door. We have a case where the people who bought two flats hoping to put them together found they don’t own the slim void between the two properties.” Read everything carefully and stay on top of your conveyancers.

Plan for the future If you’re not moving, you can increase the appeal of your property should you choose to sell in future. “Build in hope value,” says Newall. Get planning permission for an extension and fix old electrics. Surprisingly, this may be the most important selling point in luxury properties, where buyers often want to install the latest systems and can only do so if the wiring is up to scratch.

Buy-to-let landlords need these 10 contacts

June 05, 2017

Buy-to-let landlords need these 10 contacts

By Zoe Dare Hall

To make a landlord’s life easier, here are the 10 invaluable people they should have at their fingertips.
Here are the 10 people buy-to-let landlords ready should have on speed dial.

1. The lettings agent
If time, patience and know-how are lacking, landlords need a good lettings agent registered with the Association of Residential Letting Agents on side. “Are you really going to call the tenant’s last employer and previous landlord, for example? We get one forged passport a month and fraudulent bank statements every other week. Most landlords wouldn’t pick up on that,” says Marc von Grundherr, lettings director at Benham & Reeves.

2. The insurance company
Like the mortgage deal, the decor and the property itself, there is no one-size-fits-all answer to the perfect buy-to-let – and it’s the same with landlord insurance. It is essential to have a policy that applies specifically to buy-to-let properties to cover both landlord and tenant arising from a range of incidents, such as an injury to the tenant, damage to the property or legal costs to repossess it.

3. The accountant/solicitor
Landlords would be wise to keep a solicitor at close range to call upon if things go wrong and to oversee all aspects of paperwork – including being able to act quickly when purchasing a new property. A specialist accountant is similarly vital. “The rental income generated is taxable and they will take away the headache of managing your payment commitments,” says Ali Carter, lettings manager at Russell Simpson.

4. The tradespeople
Having a trusted plumber, electrician and handyman on speed dial is essential to sort small problems before they escalate. There are simple things a tenant should do themselves, such as change a standard light bulb, says Mr von Grundherr. “But I’d rather spend £100 a month on a handyman and keep the tenant happy than focus on getting every last penny,” he adds.

5. The watchful neighbour
A trusty neighbour can keep a watchful eye on your property, take in deliveries and hold a spare key – “a real asset for you and your tenant”, says Richie Tramontana, founder of Red Property Partnership. In leasehold flats, he adds, it is also easier to get property maintenance or action from the local council if you present a collective voice with your neighbours.

6. The estate agent/buying agent
Making money from buy-to-let is becoming harder owing to higher stamp duty and changes to landlord tax relief. There is also a third more rental property available today compared with a year ago because of a weakening sales market, says Camilla Dell, managing partner of Black Brick buying agency, so it is important to know which areas are undersupplied and to buy the right kind of property.

“A third of our clients are BTL investors. Buyers often fall into the trap of believing what the selling agent tells them the property will rent for in order to make a sale, so we spend a lot of time advising clients on the rental market and collecting comparable rental data,” says Ms Dell.

7. The tax adviser
With ever-shifting sands around landlords’ tax liabilities, have a friendly expert who can keep up to speed with all the legislation and who will think ahead. Steve Bolton, founder of Platinum Property Partners, says: “How you set up your property business today may impact how you can draw an income or pass it on in the future.
“There are several business structures available that allow for buying and managing a buy-to-let portfolio and what works best for you will depend on your individual goals and circumstances.”

8. The mortgage broker
Greater than lettings fees, sudden repairs or void periods, the biggest cost a landlord usually faces is the mortgage. “With a wide range of products available, it’s always good to form a strong relationship with an expert mortgage broker. They can keep track of the best mortgage deals and advise on the right product, as different types of BTL property may require a different mortgage product,” says Mr Bolton.

9. The cleaner
First impressions count, so do not sacrifice a good tenant for a dirty flat. More landlords are insisting on including a cleaner as part of the tenancy now – either paid for by the tenant or included in the rental price. Penny Mosgrove, of Quintessentially Estates, says: “It’s a godsend to any professional tenant who is too busy to clean themselves. It’s also a way of having someone to keep an eye on the property for you.

10. The property manager
While a letting agent will find a tenant, the property manager will look after the tenant and property. Some agents wear both hats, but they are distinct roles. “The property manager keeps the landlord/tenant relationship on the right foot and the landlord on the right side of the law,” says Ms Mosgrove.

For landlords who consider it an unnecessary expense, Jo Eccles, managing director of Sourcing Property, adds: “Anyone who has been caught out will know it can more than pay for itself.”

Safer buy-to-let investment
Whether you are thinking of investing or are already a landlord, the Telegraph, on behalf of Direct Line, has created useful information on the ever-changing buy-to-let market.

Direct Line landlord insurance is five-star-rated by Defaqto (Defaqto is an independent researcher of financial products) and has more than 250,000 landlord customers. It has been crowned What Mortgage Landlord Insurance Provider of the Year for four consecutive years.

Why the Russians want Mayfair

June 09, 2017

Why the Russians want Mayfair
By Carol Lewis

The Russians are back buying luxury properties in central London and beyond. Favourable exchange rates and a rise in the price of oil mean that international buyers, particularly those from the Middle East and Russia, are spending millions on large homes in high-end neighbourhoods.

Camilla Dell, the managing partner at Black Brick Property Solutions, says her buying agency has had a 22 per cent increase in the number of Russians buying in central London this year compared with last. This includes a family who bought a large detached house in the heart of Kensington for £37 million and another who bought an apartment in a Mayfair development for £21 million. “The Russians have been our biggest spenders, paying an average of £18.5 million for their properties. They have been buying homes in prime central London, with a preference for Mayfair and Kensington. Their reasons for buying are relocating to London for family, better quality of life, safety and education. Brexit has not been a factor, although currency has,” Dell says.

The main nationalities buying in prime central London last year, according to the Mayfair-based agency, were British, Indian and Middle Eastern. This year the balance has shifted to Russian, French and Middle Eastern. Dell’s biggest sale this year was a £55 million house in Belgravia to a Saudi Arabian family. Savills also reports that super-prime sales, properties worth more than £10 million, are robust.

The estate agency reports there were 120 sales last year of properties in London worth more than £10 million.
While transactions were down a little on the previous year, slightly more was spent. In total about £2.5 billion of property worth more than £10 million sold last year, of which £1.5 billion was invested in properties worth more than £20 million, according to a report, Spotlight: Prime London & Country 2017, by Savills.

The agency also reports an increase in high-end sales in the home counties. There were four sales of more than £10 million in St George’s Hill in Surrey. High-spending buyers came from Europe, the Middle East, the Far East and Russia.

According to data from Hamptons International, the strengthening of the rouble against the pound means that property is 45 per cent cheaper than it was in January 2016 for Russian buyers. It also shows that international buyers accounted for one third of sales in London in the first three months of this year, up from 22 per cent in the last three months of last year, with the proportion of overseas buyers in the most expensive London neighbourhoods totalling 49 per cent. However, this is well below the peak of 60 per cent, achieved right after the European referendum when the pound was weak.

The proportion of EU buyers in prime central London has fallen from 33 per cent last spring to 8 per cent at the start of this year. It is the first time that European buyers are not the largest group of overseas buyers — overtaken by those from the Middle East, who accounted for 10 per cent of all purchases in prime central London. However, sales to European buyers in affluent London suburbs are rising; from 6 per cent at the end of last year to 10 per cent of all sales this year.

Johnny Morris, the research and analytics director for Countrywide, says: “Europeans are attracted to wealthy suburbs such as Wandsworth, Richmond and Wimbledon — driven by the exchange rate and market sentiment.”
The spike in international homeowners selling property in London, which occurred just after the Brexit vote — in London 46 per cent of sales were by foreign owners; in prime central areas the figure was 68 per cent — appears to have eased; now foreign owners selling accounts for 20 per cent of sales across the city, and 40 per cent in the centre. However, Morris says that a weak euro and Brexit uncertainty has contributed to an increase in sales by EU owners in prime central London.

Focus On Clapham: Commons, good schools and cosy gastropubs means families stay put in SW4

By Melissa York

Clapham is not a straightforward neighbourhood. Unlike Dalston, it isn’t synonymous with hipsters; it isn’t known for its international wealth like Knightsbridge; and it isn’t the naturalised home of the English gent like Hampstead. It’s best described as a south London suburb that has welcomed wave upon wave of migration from other boroughs.

The Georgian villas surrounding its famous Common welcome the overspill from Battersea and Chelsea, while its terraces are overflowing with young families and fresh-faced 20-somethings, often renting their home with many others.

“It is estimated that a quarter of Clapham’s buyers come from one of three boroughs: Kensington and Chelsea, Hammersmith and Fulham, and the City of Westminster,” says Lauren Atkins, MD of The Malins Group, which is currently selling 24 apartments it’s built in an old metalworks in the area, “and there is a growing trend, for people searching between Chelsea and Marylebone, to end up buying in Clapham Old Town.”

According to Land Registry data, the average house price made its biggest leap in 2014, when it rose from £714,555 to £744,616 in a year. The average property currently sits around £760,600, with a year-on-year increase of 0.6 per cent, sitting slightly below the London average of 0.8 per cent.

This slow down is being seen in areas considered part of Prime Central London in particular, and though Clapham has not traditionally been seen as a paid-up member of that exclusive club, the Old Town, Abbeville Village and the streets running off Northcote Road (known by some as Nappy Valley) are certainly resembling them more and more.
“Having operated in Clapham for the past 10 years, I’ve seen the area change from being a new Londoner’s temporary ‘stop point’ to an established neighbourhood in its own right,” says David Law, sales manager at Foxtons’ Battersea office.

“Ten years ago, Clapham’s demographic comprised mainly of first-jobbers in their early 20s, buying or renting their first property with the help of mum and dad, and happily frequenting the likes of the local O’Neill’s on Clapham High Street.” Now, O’Neill’s is a Byron, its neighbour is Trinity, a Michelin-starred restaurant, and it’s surrounded by gastropubs with leafy gardens like The Stonhouse, The Jam Tree and The Calf.

This newfound gentility has led to more people climbing the property ladder within the area, Law adds, “so there’s a sense of growing up locally.” However David Fell, analyst at Hamptons International, says people are also staying put because of tough conditions in the prime market generally.

Families are also drawn to the area for good private and state schools and the active outdoor lifestyle afforded by the Commons. “We have bought there for many British and several French families, most of whom worked in banking or law and were upsizing from areas like Chelsea and Pimlico. The jump in house and garden sizes were really difficult to resist as they got so much more space and value for their money,” says Jo Eccles, MD at buying agency Sourcing Property.

Another buying agent, Black Brick, says Clapham is a “very diverse area”, from maisonettes and flats for around £600,000 to period family houses that command from £4m around the edge of the Common. “Indeed, an original 9,000sqft Georgian villa is currently available for £12m,” says partner Caspar Harvard-Walls.

Area highlights
Grab a well-earned moment to yourself in the triangular oasis of Clapham Common. There are cafes, a number of sports facilities, two playgrounds, a skate park and its bandstand is the largest in London. It’s also surrounded by a number of excellent gastropubs and restaurants. Among the latter is Dairy, a local favourite serving up British food from a robata grill with homemade bread in a trendy, upcycled setting. Afterwards, head to Venn Street Records for cocktails, live music and and sourdough pizza. For the perfect produce for your famous dinner parties, Venn Street Market offers fresh groceries, meat and seafood from independent suppliers from 10am to 4pm every Saturday. For gastropubs, you’re absolutely spoiled for choice; from the quiet cool of The Abbeville, to the colourful beer garden of The Falcon, to the much-loved Sunday roasts at The Railway Tavern, there’s one for every occasion.
Area guide

House prices Source: Zoopla
DETACHED
£1.136m
SEMI
£1.324m
TERRACED
£1.280m
FLATS
£584,563

Transport Source: TfL
Time to King’s Cross: 19 mins
Time to Liverpool Street: 22 mins
Nearest train station: Clapham Common
Best roads Source: Hamptons International
Most Expensive: Liston Road: £2,630,000
Best Value: Paradise Road: £247,750