Jemma Scott of The Buying Solution speaks to Arabella Youens on tech hubs driving the property markets in the Oxford / Boars Hill area.
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Tag: London
The Buying Solution in Bloomberg
Will Watson of The Buying Solution speaks to Sarah Rappaport of Bloomberg on historic office properties being turned into luxury apartments.
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What do wealthy buyers want in a home? London vs Country
The Wealth Report 2023, published by Knight Frank earlier this year, gave us a comprehensive review of prime property markets, global wealth distribution and luxury spending trends.
However, how do these luxury trends translate into what spaces and amenities wealthy buyers seek in their next property purchase? And how does this differ between our London and countryside clients? We asked Philip Eastwood (Partner, London) and Mark Lawson (Partner, Country) to share their insights.
London – by Philip Eastwood
I’ve seen a spike in demand from London buyers favouring functional, usable, and low-maintenance spaces.
As the cost per square foot in London is so high, clients want to maximise the use of their space and prefer properties with areas that can be enjoyed daily rather than occasionally. For example, some of our clients don’t want swimming pools that are rarely used and have high maintenance costs. It’s come full circle. They would rather have a really good utility room for daily use or even more extensive wardrobes. Many clients already have homes in places like Majorca, Ibiza, and the South of France with a pool, so they don’t need one in their basement.
Clients often insist on property features that make life more comfortable and efficient. Double glazing, air-conditioning, fibre broadband, on-site porters and parking are all prerequisites. These requirements outweigh extras like saunas, cinema rooms and gyms. Even some high-end lighting systems with complicated control systems have become passé as clients look for wireless and smart AV solutions.
This pursuit for practical spaces also crosses over into the condition of a property. My clients want their homes to be turn-key and a finished product. That means they expect a well-fitted kitchen, a good shower, and top-end interior design and materials. Very few clients have the appetite to take on a lengthy refurbishment project.
The topic of security is also becoming more prevalent. Clients are interested in how safe a street is and the security systems available. The notion of a panic room can make people feel uncomfortable. However, some London roads employ private security firms to reduce crime. For example, Chelsea Square and Brunswick Gardens have regular patrols with guards and dogs – all paid for by the residents.
Lastly, I have noticed that clients continue to look for properties with considerable floor-to-ceiling heights and big walls. Why? Well, with art investments rising by 29% in 2023 and the stellar prices paid for museum-quality works of art by ultra-wealthy collectors, our clients need bigger spaces for bigger art pieces!
Country – by Mark Lawson
As London buyers crave pragmatism, we receive more extravagant requests in the countryside, where our clients have plenty of space to work with.
To complement outdoor country living, no country home is complete without a boot room. A client of mine built himself a new boot room where each family member had their own named space, polished oak locker, each with a heater to dry out and warm up two pairs of Wellington boots. It also included heated coat, hat and glove sections.
Often, dogs have their oak-panelled beds with their names, a shower or wash area, and sections for all their leads.
There is also demand for the ‘butler’s pantry’ as an amenity, a space that allows the host to prep for meals without entering the kitchen. These spaces are becoming more multi-functional and elaborate, and I expect this will be a trend that grows as interior designers continue to push the boundaries.
I have had clients with specific needs for wardrobe space and storage. I once had a client who had an online database for the contents of her wardrobe so that she could track precisely which pieces of clothing were in her houses around the world. We have also seen clients with refrigerated wardrobes for those with pieces of clothing that are preserved best at lower temperatures, like faux fur and suedes.
Another popular area is the continued interest in well-being spaces and wellness activities. Padel tennis is the fastest-growing sport in the world – lots are installing courts at home. The craze spread quickly amongst country house owners and purchasers, with many building courts on their land. We have also seen clients asking for ice baths, cryotherapy chambers and meditation spaces – dedicated rooms for recovery, reflection and spirituality.
Finally, an increasing number of wealthy individuals are interested in sustainable and eco-friendly features, such as solar panels, energy-efficient appliances, and eco-conscious building materials. This means they can offset the costs of running high-end amenities such as pools and home cinemas.
The Buying Solution in The Telegraph
Mark Lawson of The Buying Solution speaks to Alexandra Goss of The Telegraph on how to renovate a listed house.
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The Buying Solution in The Times
Jonathan Bramwell of The Buying Solution speaks to Hugh Graham of The Times on when is the right time to purchase a property.
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Outlook on the prime central London market this autumn
It goes without saying that the last year of uncertainty amid interest rate hikes has had an instrumental impact on the real estate market. Whilst we expect the interest rate to have finally hit its peak, here is our outlook on the buying market and the shift we’re seeing in prime central London.
In a period that is traditionally one of the busiest times of the year, as we enter the autumn market, we are optimistic that London stock levels will improve, and this will continue for the remainder of 2023 into 2024. Whilst we expect house prices to further reduce elsewhere in the country, the average sale price of London prime properties has shown resilience throughout the past year, and we expect this to continue.
There is greater demand than usual from clients for turn-key properties – the appetite for ‘projects’ is low, so clients looking for a recently refurbished property in prime central London could really benefit from a buying agent. Often, we get access to these properties before they hit the open market and given that demand is outstripping supply, gaining that advantage will be crucial to being able to get the right property, in the right area at the right price.
We’ve also seen an increased demand for pied-à-terre properties in the capital as the shift to more permanent hybrid working patterns continues. I recently acted for a US client who was looking for a pied-à-terre. We helped them purchase an apartment in Knightsbridge’s most sought-after garden square address, right in the heart of the action, meeting their needs and giving them the perfect home from home.
We’re also seeing a higher than average number of clients who currently rent but are deciding to buy. Unsurprisingly, rising rent prices in London are pushing some buyers to consider the trade-off between paying rent or buying a property and absorb the Stamp Duty – especially if they intend to extend their stay in London. Regarding other London hotspots, Marylebone, Chelsea, and Notting Hill continue to be popular choices amongst my client base, but London villages are also desirable. Locations like Wimbledon, Clapham, Barnes and Chiswick offer clients a short commute to the office with plenty of family activities on their doorstep.
As buying specialists, our local knowledge is critical if a buyer is searching for something particular. We can target specific houses. If the buyers are looking in a defined area, we will often already know the houses; if we don’t, we make approaches.
Buoying the stock levels for the rest of the year are those facing re-mortgaging who will assess their options on whether to hold on to a large family house, downsize or sell a second property. Add to this the uncertainty of a general election in 2024 and the Labour Party proposing to charge VAT on independent school fees, we may see vendors choosing to leave London in search of areas with excellent grammar schools.
In conclusion, with London and prime central London readying for a busy Q4, getting the right advice and expertise from an experienced buying agent is a wise decision. Get in touch with me here if you would like to carry on the conversation.
The Buying Solution in The Telegraph
Will Watson of The Buying Solution speaks to Arabella Youens of The Telegraph on the increased demand for pied a terre properties in London in light of more office time being called upon.
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Five differences between a buying agent and a selling agent
My professional life has changed considerably since I joined The Buying Solution in January 2023 as a buying agent. I never imagined I would be commandeering a helicopter to view off-market properties in Sussex, Surrey and Kent!
A bit about me: I grew up in Somerset, then moved to London in my early twenties and started my estate agency career with Kinleigh Folkard & Hayward before moving to Carter Jonas’ Barnes office. My first buying role was with an established boutique agency, Crown Mayfair. I then spent 5 years within Savills’ country department selling super prime country properties in Surrey, Sussex and Hampshire.
Having worked on both sides of the fence, I often think about the differences in skillset and lifestyle when moving from selling to buying agent. Here are my top 5:
We only represent the buyer
Buying agents differ from estate agents in that we are retained by the buyer to act in their best interest and charge a fee for this service. Our key objective is to find and secure a property that best matches our clients’ preferences and guide them through the whole search and acquisition process.
We also aim to secure this on the best terms and price for our client, whereas, of course, the estate or letting agents work in the seller’s best interests. Sales agents are appointed to sell a property on behalf of the vendor, and once the transaction goes through, their job is done. Each agent will charge a fee for their service.
Giving access to off-market opportunities is one of our main winning edges. In fact, most of our transactions are off-market with many being totally exclusive to our client.
People and relationships
I prefer working as a buying agent primarily because it is a people business, and we work a lot closer with our clients which makes it more rewarding.
Buying agents are much less process-driven and more focused on people, relationships and giving the best advice. It is not a servile relationship but more of a trusted advisor role based on honesty, often resulting in friendships at the end of the process. I have already been referred to a client’s friend to help with their search after securing them their new home.
You have to invest time to understand the client’s brief properly, and often, buyers may not even know what they want or may have misconceptions about certain areas or property types. Then, you have to find the right property at the right price, which often means mining a network of contacts to unearth off-market gems. As a buying agent, our job rarely ends when the deal has been completed, and our clients often seek our help once they have moved, whether it is for recommendations for local amenities, interior designers, architects, or property management issues, to name just a few.
Generally, once an exchange has taken place, the estate agent’s role has been satisfied, and they will be off to commence the next sale. Meanwhile, the buying agent is still liaising with the client over contractors, architects, security and other professionals, ensuring the transfer and completion run smoothly. Rarely will an estate agent go around to the house on the day of completion to check that the curtains included in the sale are at the property, for example. Our completion day starts with an inspection prior to final monies being released and we are then there to deal with the handover of keys and ensure the day runs as smoothly as possible.
Listening, empathy and discretion
The best buying agents listen to their clients. They understand what and why their client wants to buy something and quickly learn their likes and dislikes. Empathy and discretion are extremely important and differentiate the good from the bad or mediocre.
Most importantly, a good buying agent must know why the purchase price should be a certain amount when the agent is asking for something different.
The second important role is to highlight the positives and any possible negatives that might affect the client’s experience or the property’s future value. We explore what’s happening in the local area and delve into planning portals to spot any issues. As an example, is there a threat of major development in the area? A new housing development, be it close by or a number of miles away, could change the area dramatically in a few years – be it travel time to schools/stations or an impact on the view. Fracking is also a topic that we advise our clients on. A buying agent will organise surveyors, liaise with solicitors and other professionals to ensure the transaction proceeds with the minimum of fuss.
A buying agent’s role is not one of selling but of advising and safeguarding that their client’s interests are looked after at every step of the way, listening to them rather than telling. Although we are not afraid to tell clients what they might not want to hear if it is in their best interests.
Attention to detail
The buying process is often much longer than the selling process. To begin with, we will proactively search the market using our network of contacts to give you access to all properties that suit your requirements, including those that are only available ‘off market’. Patience is often needed as our role is to find the client the right house and on the right terms, so we have to play the long game at times to achieve this.
The search is only the start of The Buying Solution’s service, as we conduct extensive due diligence on the property, providing impartial advice on price and any other issues that might affect your future enjoyment. These are then summarised in our comprehensive due diligence report.
Our teams are made up of experts in their region who know how to get their clients to a ‘preferred buyer status’ and negotiate the most favourable terms on their behalf. It is only sometimes the case that the highest price wins, and we are creative and flexible when it comes to negotiating on your behalf. Once terms are agreed upon, we guide the purchase through to exchange of contracts dealing with any issues that might arise and working closely with solicitors and other advisers.
Following an exchange of contracts, we provide clients with a completion and handover service. This includes inspecting the property on the morning of completion to ensure everything is as it should be before final monies are released.
On purchases, our completion management specialist will then deal with the transfer of staff (if required), utilities and services and provide you with a New Owners Guide on how everything works, as well as advice on the ongoing management and the running of the property.
It’s not for everybody
I find that my role as a buying agent is much more varied than before. I cover a bigger region – from Surrey to Kent. This means I must plan my days more thoroughly and carefully manage my diary.
I also work at home more with greater levels of autonomy but know that my evening or weekend can change very quickly if the right property for a client becomes available – as it is then all hands to the pump to land it for them.
Life as a buying agent can be very demanding as we often work to a tight timetable, but the rewards are worth it when we deliver. My most recent exchange in Surrey was a house that was offered to us through a private network; our clients were first through the door and, subsequently, the last through the door! They had been looking for over two years before engaging with us in a very tight area, and we acquired this for them within a few months of being instructed – they totally now see the value in using a buying agent.
Of course, there are perks to the job besides the helicopter trips. I get to see the best properties my patch has to offer and get to attend extraordinary events to meet clients from all over the world. Get in touch if you would like to find out more.
The Buying Solution in the Financial Times
Jonathan Bramwell speaks to Liz Rowlinson of the Financial Times on the Five Valleys (near Stroud) in the Cotswolds.
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What’s next for London’s prime property market?
I am often asked what the rest of 2023 could look like in terms of the market and opportunities. As experienced buying agents, we have been fortunate enough to acquire some of the most significant properties in London over the last 18 months. Due to the sensitive nature of often both the vendor and our clients, we are rarely able to discuss what we have bought. However, I can share five property-buying insights that I feel will be prevalent in the coming months.
It’s a good time to buy prime property in the capital
Despite the current climate of inflation, interest rate rises, and the prospect of a change in government, buying a prime property could still be a good option in the medium to long term.
Interest rate rises will obviously affect younger purchasers reliant on mortgages. Regarding our overall client base, I estimate that an average 60%+ (with clients spending £10m+ this figure is almost 100%) are fortunate enough not to need a mortgage when buying, so interest rates will be less harmful to them than recession and inflation. This means a housing market downturn is not going to affect older owners with more equity as much.
In addition, it could be a very good time to buy as there may be less competition from other buyers. There will be a lot of noise as to what a potential change in government may or not do and how this could affect the property market. We have seen similar cycles before, and as soon as confidence returns, the market can shift very quickly – becoming a sellers’ market again.
Our clients look long-term when it comes to investing here. If something special becomes available now, regardless of what is happening externally, many will move ahead as something similar could be years away from becoming available.
The popularity of turn-key homes
Our clients clearly prefer turn-key refurbished homes rather than embarking on a lengthy and expensive refurbishment project.
Recent property purchases across our London team were refurbished and acquired discreetly through our network. Good, refurbished family houses and apartments are in greater demand now than I have seen for many years. Clients want things now and are just not wanting to wait. They just don’t have the patience and simply do not want to lose 2-3+ years of their incredibly busy lives for a refurbishment. This is why record prices are still being achieved for turn-key properties.
London is still desirable for international buyers
The appetite for London remains strong and is still seen as one of the best places, if not the best, to live, educate children and work in the world.
The main drivers for our clients moving to the UK is typically education for their children, business and rule of law.
Security and air-conditioning are must-have items
In terms of wants, air-conditioning and security are high on the priority lists. Compared to five years ago, where 1 in 5 clients would specify air-conditioning as a nice have, it is now a must for 3-4 clients. For any ultra-high-net-worth individual, security is always a consideration. With the majority of London’s best housing stock falling straight onto the street, how best to protect a family takes precedence and will always be a key consideration.
Prime London prices will remain strong
The top end of the market will remain strong, particularly for good, refurbished houses and apartments. These are rare at the best of times, and I cannot see the demand for this stock weakening. Recently, a new record for a Notting Hill house was achieved because it is a good house but also refurbished.
We expect the domestic market to soften with more stock becoming available and prices weakening – the wide-spread view is circa -10%. Mainly as the new world of interest rates is absorbed as buyers simply do not have the firepower they once had. This will have to have some effect, although we are yet to see it. We believe it will be a busier second half of the year once these factors take hold.
Get in touch if you would like to discuss any of these insights and help to purchase the right property for your needs.