Tag Archives: real estate
British farm land prices more tightly pegged to local conditions
The British farmland market is becoming more finely balanced leading to a greater range in values achieved with sale prices more tightly pegged to local supply and the number of potential buyers. Overall values increased by 0.2% during the first six months of the year, a reduced rate, according to Savills most recent review of the GB farmland market. But this conceals some localised falls in prime arable values, where there is now evidence of more price sensitive demand coupled with reduced competition between farmer and non farmer/investor buyers. Indeed, average grade 3 grassland values, which in recent years lagged way behind arable values continue to strengthen with an average uplift of 1% during the half year. Meanwhile, 5% more land was publicly marketed in compared with the first half of 2014. Almost half of the acres advertised were arable compared with around 30% in the previous four years. ‘There is evidence of some farmers, especially those without successors taking the opportunity of current record values to exit the industry,’ said Alex Lawson director of Savills farms and estates. The report also shows that non-farmer buyers overtook farmers as the principal buyers of land and the proportion of farmers buyers is now at its lowest since 2003. However, of those continuing to buy land the proportion doing so in order to expand their existing businesses is rising and now accounts for the reason behind half of all purchases. ‘There are many entrepreneurs still growing their businesses, despite current commodity prices, reflecting the longer term view they take. It also reflects the fact that many farming businesses now produce significant non-farming income which helps spread business risk,’ said Ian Bailey of Savills rural research. A breakdown of the figures shows that 85,000 acres were publicly marketed in the first half of 2015 which is 5% more than in the same period in 2014 but 1% less than the average of the same period of the previous five years. In England 13% more land was publicly marketed in the first half of 2015 at 65,500 acres compared with 57,100 acres in the same period of 2014, which is 7% more than the five year average of 60,100 acres. Supply in Scotland fell by 7% to around 18,500 acres which was very similar to 2013. Here sellers and buyers continue to be affected by uncertainty surrounding land reform, the general election result and reform of the Common Agricultural Policy. Welsh land supply has dwindled most dramatically, with only 1,900 acres for sale so far in 2015. This is less than half the area marketed in 2014 and of the average area over the past five years. ‘Almost half of the acres advertised were arable compared with around 30% in the previous four years. This shift and the regional increases in supply are, to some degree, reflected in the pressures on the arable and regional value growth noted… Continue reading
Councils to crackdown on mega basement extensions in London
Councils in London are starting to crackdown on wealthy property owners who want to extend their properties underground to create several storeys of living space as well as swimming pools, gyms and car parking. Basement extensions several storeys below the ground have become increasingly popular in some of the capital's most expensive neighbourhoods in Westminster and Kensington and Chelsea but often result in complaints from neighbours. Indeed, other home owners are not just worried about the noise and disturbance caused by what can amount to years of work, but also raise concerns about the effect of all this underground work on surrounding properties. These so called ‘iceberg’ homes where more of the living space is underground than above ground have been used by owners to get round strict planning rules but now some councils are changing the regulations which could result in it being harder to get permission to go underground. The Royal Borough of Kensington and Chelsea is about to introduce restrictions on basement extensions which will limit them to a single story and they will be banned completely from listed buildings. Now Westminster Council has confirmed that basement extensions will require full planning permission and will also be limited to one storey apart from in exceptional circumstances. This means that neighbours will have the opportunity to object to basement extensions through the normal planning process. ‘Residents have been facing an underground epidemic on their quiet residential streets, and I want to help stop the horror stories of people living next to mega basement construction,’ said Robert Davis, Westminster Council's deputy leader. ‘All basements will now go before the council’s planning department, allowing neighbours and local communities to have their say and for developers to demonstrate they will not cause undue harm to neighbours or the character of the area,’ he added. Continue reading
Top waterfront homes in UK cost an average of 70% more, new index shows
Prime waterfront properties in the UK are worth up to 70% more than their inland counterparts on average, with the South West commanding an extra 91%, according to new research. Private slipways have the potential to push the premium up to as much as 118%, according to Knight Frank’s latest Prime Waterfront Index which measures the potential value uplift for prime homes with a view of water compared with similar properties located further inland. The index data shows that the South West offers the potential for the most added value with a premium of 91%, followed by the South East at 44% and East Anglia at 41%. The premium is 27% in Wales and 33% in Scotland. The report points out that the South West has the longest coastline of any English region and boasts some of the country’s most expensive waterfront properties, with Sandbanks, Rock and Salcombe some of the prime hotspots. ‘Amenities are also a crucial factor for many buyers and having direct access to water is something many people are prepared to pay a premium for. Private slipways are considered the most valuable feature, pushing up the waterfront premium up by as much as118%,’ said Oliver Knight of the firm’s residential research team. The index report also reveals that properties with a private mooring or pontoon can see the waterfront premium rise to 106% and 105% respectively, while jetties and private beach access can add up to 91% and 86%. In terms of location types, homes situated on estuaries command the largest uplift of up to 96% compared to a similar property inland. Prime harbour side properties enjoy an uplift of up to 91% due to their rarity and prime coastal properties are worth up to 67% more. Heading away from the sea, lakeside homes are 40% pricier than their waterless equivalent, and being situated next to a river can add up to 67% to the value of a prime residential property. ‘Our data suggests that interest in UK waterfront properties extends beyond these shores with individuals from all over the world searching for a waterfront home in the UK last year,’ explained Knight. Indeed, the data shows that excluding the UK, where the majority of web searches originated, this was led by potential buyers in Europe and Asia Pacific. Continue reading
