South West Property Search

River Cottage dreams - demand still there.

noreply@blogger.com (Hugo Busby) — Wed, 09 May 2012 19:19:00 +0000

The River Cottage approach to lifestyle still continues to draw people to the West Country especially around centres such as the market towns of Axminster, Bridport and Beaminster. I have, in the last two to three years, acted for a number of clients who crave the farmhouse or cottage with some traditional farm buildings or barn and a small holding of land. Most often they are looking for property to renovate and to create their own personal style. Although these opportunities are decreasing and land less openly available, I am still surprised at what can be found when you start looking.

I went to visit a client in Somerset who has now got his own micro brewery and around Bridport there is a small cooperative that will collect your apples and give you some back bottled as juice. Another client is now able to harvest fruit from an orchard he planted and plans to make cider using a mobile press. Chickens for eggs and rearing pigs for the table are now common place. It's great to see such close attachment to the countryside and the diversity of breeds you now find at people's properties.

West Dorset Smallholding

For most people 5 or 6 acres will suffice and it is important to know what you will do with it as it can't look after itself. For several people who just enjoy owning land I arrange for a local farmer to rent the ground so the owner has an income which takes care of the annual management. Future use is an important consideration and I often as "what are you going to do with it?" or "what do you want it for" and then the acquisition can be tailored around their requirements.

www.busbypropertyconsultants.co.uk

Farmland market forecasts remain strong for 2012 - local research pays before you buy.

noreply@blogger.com (Hugo Busby) — Wed, 29 Feb 2012 19:20:00 +0000

For those looking to buy agricultural land, you may need to adopt a number of stealth policies to keep ahead of the game and enquire at a very local level.

The RICS have recently published statistics for the second half of 2011 and in summary their key points were:

Farmland prices reach a record high in H2 2011
Demand is being driven by commercial farmers
Evidence banks are lending more freely to the agricultural sector to finance land purchases

It goes on to highlight "the growing disconnect between the flagging residential farmland sector and booming commercial arena" and states "price rises are being driven almost entirely by commercial farmers and while the outlook for prices is still very positive in this segment of the market, it has turned slightly negative in the residential sector".

The survey’s 'opinion' based measure (which is an estimate of the hypothetical value of pure bare land by surveyors) increased by 7% in H2 to £6514 per acre (taking the annual gain on this measure to 11%).

The strongest price gains in bare land values were in the West Midlands, with an impressive rise of 18% in H2 alone, making the West Midlands on average, the most expensive farmland in GB, at £7500 per acre.

This may all sound a bit gloomy for those who dream of owning a parcel of land. Much of the price rises are being driven by scarcity with two further influences. The first being the use of "farming" as an efficient tax planning vehicle for agricultural property relief (APR) on inheritance tax. I have a number of clients who generate their main income from other sources who are building up farmland holdings for this purpose and then creating agreements with contractors whereby it will be farmed in a qualifying manner. The second, is a very real demand by commercial farmers to expand the acreage they farm. The two are often linked.

In the geographical area in which I operate you need to be able to move fast and know what is going on. Much of the land I purchase is prior to market or, such is the demand, it is offered to a number of known individuals seeking land in that particular area. The last block of land I was involved in, I was approached to buy for my client before the owner had been buried and having bought it had an astonishing number of farmers calling me to see if it could be rented. I have recently found two farms that can be bought at a fair price privately and am awaiting client instructions although I believe the land will be bought for less per acre than that quoted above - it will take a lot of pressure off the deal if we agree terms before anyone else becomes involved. In short most land sold today rarely sees the pages of the Farmer's Weekly or local paper so don't sit and wait - ask around locally.

Property purchase makeovers - raising the roof.

noreply@blogger.com (Hugo Busby) — Mon, 13 Feb 2012 20:14:00 +0000

Recently I have taken on a couple of new clients who have failed to find their perfect property. In both cases, they could not find the size and style of property they wanted in the desired location. One reason was that the size and style of property in the right location would be twice their budget - after several years and property cycles, this lead to them showing me either the right property in the wrong location and vice versa. In this part of the world in order to stretch your budget you have to be imaginative and explore all options. There are a lot of good country properties at sensible prices that either just need a makeover, extending or in extreme cases flattening. I am not talking about anything like the Channel 4 programme "Grand Designs" but changing the windows, rendering or re cladding the elevations or raising the ridge height. In many cases, depending on materials, the uplift can be significant and you are left with a very saleable country house. This is nothing new and I have worked with a number of architects over the years.

Not long ago, I ran into Johnny Holland of Hackett Holland www.hackettholland.co.uk . He trained at The Prince of Wale's Institute of Architecture. And, albeit an architect with a business based in Notting Hill and Kensington, he is restoring a Victorian Farmhouse and buildings in West Dorset along with projects for existing clients in the Dorset and Somerset areas.

Armed with his deep knowledge of architecture and sources of materials and fittings both contemporary and vernacular, he has accompanied me on three recent jobs where he has helped me give reassurance to the client on a property's potential through explaining what a place could become and resulted in an acquisition. For example, the first project was an unattractive 1970's build farmhouse in a spectacular location. The budget was limited so rather than a full rebuild, it involved a basic overhaul externally to give it a "Jacobite" appearance, reconfiguration of room sizes and landscaping the gardens appropriately. It really wasn't hard or costly. The client got exactly what they couldn't afford with the benefits of a modern house and no unseen future expenditure or repairs. The second project was all about the setting and involved drawing the accommodation out laterally, re cladding and landscaping the gardens again but following a Georgian design. The third along similar lines involved adding a contemporary space to an existing small preiod dwelling.

It's all good stuff and should never be overlooked. There are endless opportunities out there if you try this approach, just make sure you choose a suitable architect with the relevant experience so as to avoid disappointment. It can work on most structures from barns to bungalows.

Buyer's Property Market?

noreply@blogger.com (Hugo Busby) — Mon, 14 Nov 2011 14:10:00 +0000

The market in my area seems to be heading rapidly in favour of the buyer. I have in the last week got two properties under offer for clients at discounts greater than 15% off the asking price. There is a lot of property out there that has received no offers since marketing began in the early Spring and both selling agents and vendors are becoming increasingly nervous of what may happen next year and , naturally, a good offer deserves serious consideration. This is partly because they were over priced to begin and partly a reflection of the market but selling agents are now quite openly keen to do deals at realistic prices. I would not say the market for country property is showing any signs of distress but there is a clear readjustment in price downwards and some sellers who have been less cooperative are now chasing the market down hill.

Market forecasts seem to endorse this view. Knight Frank recently reported that "Prime country house prices fell 1.2% in Q3 2011, contributing to an annual fall of 1.7%. The most resilient sector over the past year has been the country cottage market, which has only seen prices fall 0.7% over the past 12 months." All this is true but at my level can be analysed further on a geographical basis. Ther is a lot of good property for sale in the south west which is struggling to find buyers despite the element of scarcity and vendors are having to decide if it's better to sell now to a good purchaser as there is no certainty the Spring market will blossom in 2012.

Savills have reported that "Second home markets in the South West have been particularly hit by weak market sentiment, though the townhouse markets have fared better. Taken together, values are down -2.9%" and that year on year values have fallen by 5.6%. Based on my recent experiences better discounts are available in the market place, you just need to know a property's true worth which is often supported through strong due diligence.

Salmon Fishing For Sale

noreply@blogger.com (Hugo Busby) — Mon, 14 Nov 2011 12:27:00 +0000

I may shortly have a stretch of fishing for sale on the River Exe, Devon - double bank, named pools, etc. Get in touch for more details if you know anyone who might be interested? hugo.busby@busbypc.co.uk

Farmland prices continue to rise.

noreply@blogger.com (Hugo Busby) — Tue, 23 Aug 2011 13:28:00 +0000

"Farmland prices break £20,000 per hectare barrier" was the recent announcement from Smiths Gore who went on to report "Prices have continued to rise – for the seventh quarter in a row – due to the small amount of land for sale. Although there was a flush of land marketed in the first half of the quarter, supply dropped back sharply in the second half to just 5% more than a year ago. Although constricted supply remains the dominant factor in the market place there has been a more subtle change in the type of supply, with more arable farms coming on to the market as vendors hope to cash in on high commodity prices".

The RICS have recently completed their Rural Land Market Survey and report "Farmland prices reached an all time high during the first half of 2011, as land availability failed to match growing demand. Chartered surveyors estimate that the average price per acre increased to £6,115 during the first half of the year, reaching all time record levels for the second consecutive period. Interest from potential buyers of commercial farmland continued to surge ahead, with 50 per cent more respondents reporting increases rather than decreases in demand. Surveyors report this is driven largely by increasing demand from commercial farmers who are looking to expand production on the back of elevated commodity prices. Alongside rising demand, land availability increased for the first time in three years. 27 per cent more respondents reported rises rather than falls in commercial farmland coming onto the market, while a net balance of seven noted an increase in residential farmland availability. Although positive, these increases were not enough to keep pace with the growing level of demand.

During the first six months of 2011, all areas of Great Britain experienced rising farmland prices, with the exception of the North West and Wales, where prices dipped. However, farmland in theses areas was also the most expensive, with surveyors reporting prices of £6,938 and £6,500 per acre respectively. Given the imbalance between supply to the market and demand, surveyors predict the recent trend in farmland prices to continue over the next twelve months, with strong growth expected in the commercial farmland market but a flatter trend in the residential sector". In summary the report stated:

Farmland prices reach all-time highs, but pace of growth moderates due to rising availability.

Surveyors expect commercial farmland prices to continue rising strongly, but expect prices of residential farmland to stabilise.

Commercial farmers remain keen to expand production but activity levels are more subdued in

the residential sector.

This really only confirms what we already know.

That farm prices and land prices are still strong.

That location and quality of property are relevant.

That there are regional variations.

That land prices are driven by demands for arable ground.

That commercial farmers are hungry to expand with only a limited supply and as the value of their holding grows, finance is readily available.

That the implied tax advantages of owning land is encouraging other buyers.

That in these uncertain times farmland is seen as a safe asset class in which to places cash.

What I can tell you is that a lot of land is being sold privately as you don't need to look far afield for interested parties. Good luck.

Private Property Sales and Rentals

noreply@blogger.com (Hugo Busby) — Tue, 23 Aug 2011 12:07:00 +0000

There was period in the last 12 months when I felt sellers and landlords thought it best to go to the open market in order to exploit the best sale price or rent for their property. The concept of "off market" deals had dried up.

These people preferred to act privately to avoid the general public, neighbours, etc knowing their business or, indeed, suffer the humiliation of failing to reach expectations. Some vendors were attracted by the chance of a premium and purchasers/tenants liked the idea of exclusivity - and in the past this worked well. Then demand faltered and this combined with buyers/tenants looking for a good deal on one hand and an inability to commit on the other resulted in coming to the market.

Recently, I have noticed the trend returning to off - market transactions and much of this years success has been done quietly , privately and without time and third party pressures. In all cases, the reason has been that both landlords and potential vendors who have approached me have been more interested in the right person and on the right terms and, refreshingly, were only after fair market value so good deals were done.

Salmon or trout anyone? Finding game rivers for sale.

noreply@blogger.com (Hugo Busby) — Tue, 17 May 2011 16:47:00 +0000

"Happy is the man who has his own river bank, and if it is attached to his home he is fortunate indeed. "

The former is true but acquiring the latter is not so easy. I heard another less eloquent phrase from a friend - it goes "If you stood me in front of a ditch with a rod I'd have a go for a fish". What he means is he loves fishing as do all of us who participate. I'll have a go anywhere and am blessed with a small stream at the end of my drive, so small you can step over it in parts which holds the best head of wild brown trout I've ever encountered in the south. I recently acquired some fishing for my friend off market, and although not the best beat in the world brings a lot of pleasure with it. It lies in a beautiful and private part of Dorset.

But aside from the sheer enjoyment heading down to your own river to catch a fish, how much is the ownership of fishing rights going to cost you?

First you have to find something that's available and much of the good fishing rarely comes to the market. It almost requires constant vigilance on preferred rivers to track it down. I have found hard work pays off and by literally working down the riparian owners of a river you might just have some luck. I did this recently in Devon and found two good beats on the Taw and Torridge available privately. However, do your research and be diligent. Just because its a river that is known to have good runs of salmon and seat trout or a good head of brown trout does not mean you will catch them on your beat. It is essential there are catch returns and holding pools, fish passes and good water levels. I remember some years ago a salmon fishery in Devon being marketed with new huts, fishing piers and a glossy brochure but no catch records. Someone had bought this, spent the money, and found all the fish run straight through and hence was trying to offload it to some other ill informed person. You can pick up a lot of information by asking around locally - fishing clubs or fly fishing instructors.

In Scotland, rivers are valued according to a formula that is based on what they call “bags” — the number of salmon “bagged” in an average year. Detailed records are kept of every fish and the average for the previous 10 years worked out. This is then multiplied by a figure per fish caught.

When it comes to the valuation of fishing in England, rather than basing values on multiplying numbers of salmon and sea trout as in Scotland, gentler criteria apply. Scenery and access can play almost as important a part as the numbers of fish hiding in a chalk stream.

Values of good fishing in England have risen more or less mirroring prices of the best residential property in recent years. Stretches with healthy populations of indigenous brown trout can command £450 a yard for the prime chalk streams in Wiltshire and Hampshire if both banks are included down £125 per yard in Dorset. So what is known as a “beat” — measuring, say 1,500 yards — could cost more than £600,000.

Recent sales of fishing, I have looked at for clients in the last 12 months or so have varied from the river Frome in Dorset and the river Wylye in Wiltshire to the rivers Taw, Torridge, Mole and Dart in Devon. So although scarcity is an issue, beats can be found to buy both with and without land.

The advantage of owning the land means you physically own the river bed as opposed to the rights which is important for maintenance, habitat improvement and general access. Improvements could include removing silt, shoring up the river bank, repairing sluices and perhaps constructing groynes to control the flow of water. The main job, however, involves keeping the bank clear of excessive growth and cutting weeds in the water, which can very quickly take over if neglected. Owning the land also means you might be able to add a fishing hut or parking. The effort is usually worthwhile if an income is to be derived from the river bank. One rod on a good trout river can command a daily “rent” of between £50 to £150, sometimes more depending on the time of year.

If owning a river does not appeal you can either buy a rod for a season or join a club or just a day ticket. Sometimes you can buy a share in a beat allowing you to fish certain days but this does restrict choice. A 3/8 share is available on the river Dart and the fishing rights are over a stretch incorporating 12 salmon pools with 6 further secondary salmon lies. It also has a productive sea trout pool with other additional sea trout lies.

Fox Grant have 1,111 yards of double bank fishing for sale on the river Wylye at a guide of £175,000 with 9.27 acres of woodland and access track available too for £35,000 which is worth a look.

Thinking of buying amenity or commercial woodland - plenty to consider.

noreply@blogger.com (Hugo Busby) — Tue, 17 May 2011 15:49:00 +0000

Why would I invest in or buy woodland?

Woodland is not the first thing that comes to mind when people think about investments. Many people buy because they like the idea and want a private place of their own in the countryside. However, over the past decade, interest in woodland has been increasing and prices have been increasing at a rate of 5-12% per year, depending on location. Historically woodland had a value of approximately 50% or less of agricultural or farm land. Over the years the demand for what is called "amenity land" has driven the price up and price per acre is more or less in line with farmland regardless of it's physical quality. For example, siting of woodlands i.e. on hill tops or lowland areas was often a reflection of poor or wet soil which were not best suited to growing grass or cereals.

Much of the woodland I have recently acquired for clients has been for amenity purposes with prices in the region of £5,000 to £6,000 per acre (£12,355 to £14,826 per hectare). These figures also come into play when I have bought farmland although there would be some adjustment up or down depending on standing timber values, sporting (shooting) potential or amenity and aesthetic values. The value of a stand of mature oaks or beech in a parkland setting will be far greater than a young plantation on a poor piece of farmland.

What are the benefits of investing in woodland?

Firstly for personal enjoyment, whether sporting or conservation. It is also tangible and can have some potential tax advantages. At the present time the Inland Revenue divides woodlands into those which are either “Commercial woodlands” or ”Amenity woodlands”. Commercial woodlands are entitled to several tax benefits, namely capital gains tax, income tax and inheritance tax.

Owners of Commercial woodlands are entitled to the following tax benefits:

Capital Gains Tax: As your timber grows it will increase in value. This increase is exempt from capital gains tax, but any increase in the value of the land is not exempt.

Income Tax: Any income or profit generated from your woodland is exempt from income tax. Forestry grants are not taxable (except for annual income from the Farm Woodland Premium Scheme). There is no tax relief on the interest payments on secured loans.

Inheritance Tax: Commercial Woodlands (including both land and timber) qualify for 100% Business Property Relief provided they have been owned for at least 2 years. Both Amenity and Commercial woodland can be made a lifetime transfer over 7 years.

To qualify for Business Property Relief you will need to show proper accounts (you do not have to make a profit now, but there has to be an intention to try and make a profit in the long term).

If you are not actively selling timber (or just using it yourself) your woodlands will be classified as “amenity woods”, and you will not qualify from the above tax benefits. If the wood has mature trees there is some potential to earn some revenue from timber sales, which is tax free. However, there are limits on how much you can fell each year and replanting or natural regeneration is required. Bear in mind if you extract a good crop of timber - it will be a lifetime before you get the next. Removal of timber requires careful consideration, especially amenity woodland, as you may wish to preserve the overall appearance and thinning needs to be selective.

You may be able to qualify for Inheritance Tax exemption if your woodland is thought to be of outstanding landscape or nature conservation value such as SSSIs.

With increased interest in woodland recreation and fuel wood production, the traditional definition of commercial woodland is changing.

Grants and Licences: Woodlands in the UK are protected by the Forestry Act 1986 which requires anyone wishing to fell trees to have a licence from the Forestry Commission which is subject to various conditions.

You don’t need one for cutting small quantities of wood and over a year you can fell up to 20 cubic metres for your own use. This is the same as a large lorry load, so for routine maintenance or for cutting a bit of firewood you will not have to worry. However the volume allowed goes down to just 2 cubic meters per quarter if you are selling it.

The legal definition of a “tree” is any tree or shrub which has a diameter of more than 8cm when measured at a point 1.5 metres from the ground. Smaller than 8cm and you can cut as many as you like. Before you can apply for Forestry Commission grants you will need to register your woodland with the Rural Payments Agency.

Whatever you choose to do owning woodland can provide great pleasure but remember they do not manage themselves.

The farmland market. What's happening now?

noreply@blogger.com (Hugo Busby) — Wed, 02 Mar 2011 15:52:00 +0000

The latest RICS Rural Land Market Survey reports that prices for farmland in the United Kingdom reached a record high in the last two quarters of 2010 as demand for commercial farmland grew strongly against continued shortage of available land. Farmers are keen to expand production to take advantage of elevated commodity prices. However the survey goes on to say residential farmland (land attached to cottages, farmhouses and country houses) is experiencing more subdued growth. In financial terms, residential farmland reached a high of £6,879 per acre (£17,000 per hectare) and bare farmland a price of £5,867 per acre (£14,500 per acre). These are averages and there are strong regional variations. For example I have seen bare pasture land in North Devon on behalf of clients that struggles to reach £4,500 per acre whilst in North Dorset it is achieving in excess of £6,000 per acre.

Opinion amongst local agents continues to be the same, increasing demand and lack of supply, which can only drive prices upwards at this point in time. If you look in Farmers Weekly or a search on the Internet you will see how little land is available in the south west. A dairy farm near Sherborne, which happens to be a very good one, is guided at £9,302 per acre including 50 acres of woodland, buildings and a 4 bedroom tied house. Over the last year all the acquisitions of farm and amenity land has supported this upwards trend. It can be difficult to negotiate downwards for a client when there are several waiting in line behind you. However, if you are unfamiliar with the buying of land is it always a good idea to talk with a local agent or, indeed a farmer, as there are good reason why prices vary not only geographically but field by field. You should always look at such factors as access, water, drainage, fences, soil type, hedging and public rights of way, sporting rights along with many other issues.

Good news and bad news - still looking for a country house in the south west?

noreply@blogger.com (Hugo Busby) — Wed, 16 Feb 2011 19:30:00 +0000

The property market is starting to wake up following on from the Christmas break and the bad weather around that time.

The good news

On my travels around the counties in which I operate, I am pleased to report that local and national agents have been out and about providing many appraisals for potential vendors. One office in Dorset had seen as many as 50 properties in January of which 11 are now on the market and some of the remainder should follow in the Spring. This is encouraging . I have also seen an increased number of off market properties some of which are very nice. It always delights me when you can find unmodernised properties such as farmhouses and cottages in great private locations.

The bad news

I have tried to buy two very different properties for clients in the last week. Both were sold subject to contract in under a week and in excess of the asking price to cash purchasers. The speed of these transactions went against the current perception of where the market is meant to be at. There are no signs in this part of the world that prices are falling or the market is struggling. As I always say, good property always sells. The disappointment for me is that one of the properties was only the second I had seen in a few months suitable for this client but I and my client were not prepared to get into a bidding situation. It may fall through. On the other hand, I have made a very fair offer on another property for a client which for various reasons has not been accepted despite little interest from others. I do have to add that every purchase is different and there are often reasons for this.

It is early days yet and it remains to be seen what will happen to prices as more comes to the market but with the visible competition in this part of the country - who knows?

The current state of the property market - time to think about buying?

noreply@blogger.com (Hugo Busby) — Tue, 21 Dec 2010 11:29:00 +0000

The Royal Institute of Chartered Surveyors has recently been in the press reporting surveyors views of the market.

The Independent: Lack of buyers pushes property prices lower
City A.M: House price drop for November
BBC News Scotland: Scottish house prices 'fall again', surveyors say
Belfast Telegraph: Property prices 'continue to fall'
Mirror: House prices slide in snow say estate agents
The Telegraph: Home owners face repossession amid struggle to sell properties

Now, if you have sold and are waiting to buy, this may all sound like good news especially if you are a cash buyer or have a significant deposit to satisfy the banks increasingly stiff lending criteria. However, bear in mind that this is on a national basis and looks at all the property types such as flats and houses in all parts of the country. This data can often skew the real picture in specific areas. It would be true to say that price falls are mainly being seen in inner city areas and lower cost housing. Here in the west country, prices for good property are not showing any major signs of falls in value. And as I always say quality housing always sells well. Yes, a lot is over priced and you need to do careful research, especially in the countryside as values vary a lot from county to county, area to area and village to village. The same house in north Dorset could achieve a lot more than, say, a house in parts of east Devon.

If you are in the mid price bracket of £500,000 to £1,000,000 the spring could offer some good opportunities. I have recently seen a number of properties in this price range that are coming to the market early on, so if you are prepared you might just get lucky.

Rural property - there are still surprises to be found.

noreply@blogger.com (Hugo Busby) — Tue, 23 Nov 2010 13:31:00 +0000

From one day to the next, you never know what property you might discover. Some are encountered whilst carrying out professional work and the remainder through word of mouth on the information super highway. Four I visited recently spring to mind that I will tell you about.

The first is a block of mature woodland in open countryside at the end of a no through road. Nothing to interesting there but what made it special was this - a river running through it, a cider press, an apple orchard and an established dwelling formerly a single garage. The garage had consent for a cottage. How many people dream of finding such privacy and seclusion and the chance to build your own home or a retreat? Plus you can make your own cider too.

The second was a very special country house, a mixture of Jacobean and Victorian architecture with ancillary accommodation, walled garden, stone stable block and land. I have not seen such a perfect package and country house for some time. For me, what made it extra special was that many of the Victorian fittings were still in use and the stables unmodernised. Properties like this can still be found.

The third was a modest country house close to the south coast with stunning views built in the 1930's. It was extremely well furnished. This had a touch of "Miss Faversham" about it. One of the owners had predeceased the other some fifteen years before and since that date the dining room had been left as was with the curtains drawn and the dining room table still laid with the food, wine, coffee all crystallised and the room unused since their death.

The final property was a pretty country cottage of local stone and thatch which had been bought in the late 1950's in a poor state of repair but rather than modernise and repair the purchasers lived in it as it was never disposing of anything. The ashes from the solid fuel Aga had only reached the garden and created a mountain. All ten cars they had bought over the years having reached the end of their useful life were parked in the garden lost amongst brambles and nettles. The house comprised various passage ways through piles of newspapers, books and other possessions accumulated over the years following purchase. It represented a true social history of the preceding decades and was like a treasure house.

I always find it refershing that such opportunities still exist in this part of England. The other point of interest is that all will be coming to the market in the New Year.

Rental demand remains strong

noreply@blogger.com (Hugo Busby) — Tue, 09 Nov 2010 18:48:00 +0000

You would be surprised just how hard it can be to find a property to rent in the country or a village location. I have a pretty good knowledge of private landlords and by that I mean country estates but try and find a good property that is detached with 4 or 5 bedrooms and it is near impossible at present. There is no shortage of flats and 2/3 bedroom houses available to rent. There are many reasons for this.

First the "buy to let" market. If you are a serious investor in property, it is all about yield - put simply the higher the rental value and the lower the purchase price - the better the yield. So, simple, who would buy a medium to large country house as an investment? Nobody. That leaves you with the country estates who favour long term lets and hence limited availability or the chance that someone goes abroad and choose to let out their home - slim pickings.

However, a new type of landlord is entering the market. These are people who have tried to sell, want to move and have failed to find a buyer. It is noticeable that a number of larger houses, along with the smaller ones,are becoming available to let as they have not sold in the last six to twelve months. I recently managed to find one for a client in a short space of time for this reason. The house was on the market, the owners wanted to go abroad and could afford to let the property until they feel the sellers market improves. I confess, securing this property was more down to luck than hard work but it always pays to think laterally.

For those who enjoy a challenge.

noreply@blogger.com (Hugo Busby) — Tue, 26 Oct 2010 14:43:00 +0000

As a rule most of us, whether town or country, are looking for a comfortable home within our budget. We are all happy to undertake some work to that property and there are those who actively seek a property that requires updating - why pay for someone else's taste when we would rather impose our own?

There can be extremes. Planning and listing issues aside, I recently took two very different clients to two very different properties. The first property was in West Dorset, and comprised a farmhouse, former mill and outbuildings in an idyllic situation reached by driving across a field. The habitable parts had not been lived in for in excess of 10 years and the place had been in the same ownership for over 60 years. Parts looked as if the walls had collapsed and rather than rebuild, the occupiers had just extended the property at the other end. It was a property that suggested if you start to restore it you may be left stood amongst the foundations pretty quickly. We left this one for someone else - I felt the costs of refurbishment outweighed the end value and that an easier property should be found.

Another client is looking for a sinificant country house in a derelict state but preferably with a roof on and windows in to restore to it's original glory. These are not that easy to come by in the West country. We have now looked at four, the last was the picture of the Devon country house on this blog. It met many of his requirements - land, size, location and condition and it was available at the right price. The location and views were outstanding with further land available to purchase surrounding. Unfortunately it lacked in other areas and we did not take the matter further.

My point is, it is all well and good to tackle these types of property but you need to ask yourself two questions. First, will the costs and purchase price outweigh the end value i.e. will I make a loss and second, is this really where I want to be forever. If the answer to 1. is "yes" and to 2. "no" then don't even think about it as it is not a stress free exercise. There are often very good reasons why properties get into this state of repair in the first place and why they remain on the market.

Spoilt for choice?

noreply@blogger.com (Hugo Busby) — Wed, 22 Sep 2010 17:30:00 +0000

I received one of the property sections this week of a regional paper and could not believe how many pages of property were available through the various agents. Further while collecting comparable evidence for a property valuation two agents said they now had too many instructions on their books to deal with effectively. We know what happens with supply and demand, over supply of housing stock leads to downward pressure on sale prices and this is currently true at all levels whether a small country cottage or a substantial country house. The press and professional bodies continue to report price falls, albeit negligible at present, and this is reflected on the street. While collecting evidence for the valuation above, I became aware not only of collapsed sales but price reductions in excess of 10% with sales agreed at even lower figures.

This is all good news if you are a buyer but it still doesn't make finding the right property any easier. It can make it harder. And, accurately priced quality property is still selling. You will note during your search how much property is hanging around as it is overpriced and some peoples expectations remain unrealistic. Best advice is to be involved with your preferred property but go slow on the level of interest - it could work in your favour in later negotiations.

Agricultural and amenity land market - what's happening?

noreply@blogger.com (Hugo Busby) — Mon, 23 Aug 2010 09:49:00 +0000

Most of the large farm and land agents along with professional bodies, such as the RICS, and banks have announced their review of the second quarter land sales and price indices. Much of this is consistent with minor variations depending on the particular thrust of the organisation - some talk the market up and others are a little more realistic. What is quite clear is the demand for land remains firm and averages between £5,000 and £6,000 per acre for bare agricultural land in the south west depending on use - pasture or arable - and quality (Grade 1, 2 or 3). We can all speculate what is driving the market - tax planning, low risk, food shortages, subsidies, scarcity.- any number of theories. I find, quite often, that clients are buying just because they like owning some land.

What I have learnt, with some recent acquisitions and valuations for clients, is that quality of land seems to bear no relation to price. It all depends on demand in the "micro area" in which the land lies. For example, a block of bare land in Devon was recently sold in two lots - one permanent pasture and the other arable, both level with good road frontage. In normal circumstances you would anticipate the arable to reach a higher value due to it's versatility. Quite the reverse happened with the pasture achieving £600 per acre more. This was unusual due to the size of the lots. We all know that pony paddocks and amenity land frequently command a premium over agricultural value even when the quality is not there but that is a separate issue and small enclosures are hard to come by.

When buying land, we are all guided by averages and recent sales but local knowledge is always essential when knowing how much to pay. There is plenty of evidence to make you think otherwise.

What's happening in the country property market?

noreply@blogger.com (Hugo Busby) — Wed, 11 Aug 2010 15:26:00 +0000

Good news for the buyer. There is plenty of property across the whole spectrum - cottages, farmhouses with land and top end property both on and off market. Some of these properties are not finding buyers at the asking price. Everything you see and read in the papers in this past week would not necessarily be true of the areas I cover - Dorset, Devon, Somerset and south Wiltshire. It has been said that there is more and more property coming onto the market which in turn is driving prices down. This is not entirely the case but there are signs of a slow down in buyer enquiries and activity. I know this as I spend a lot of time talking with agents, solicitors and banks both in a professional capacity and as a property search agent. I'm also actively trying to find and buy property for clients. The message coming through loud and clear is that many deals are falling through for two main reasons. First, people feel prices are going to fall and pull out and second, people can't raise the debt. In the first case I would not recommend pulling out of the purchase of your dream home. You might be able to renegotiate downwards or get it for less at a later date but you might lose it all together and, as many do, kick yourself when 6 months or further down the line you still have found nothing. Recently I heard of an agreed sale where prior to exchange the purchaser dropped the offer by £200,000 for no good reason. The consequence of this action was the vendor rightly declined the revised offer and further has refused to talk any further.

I also know that due to the slow down and possible fall in prices agents are strongly recommending sellers look at taking offers. Prior to this I witnessed many price reductions taking place.

What I am trying to say is now is a very good time to get out there and start looking for that property and buy it.

What's the property market doing?

noreply@blogger.com (Hugo Busby) — Sun, 04 Jul 2010 11:02:00 +0000

I get asked this every day and in recent times it's been hard to give a clear reply. I know that there is strong demand for family rental property near the independent schools of north Dorset and the surrounding areas often because they are unable to find a suitable house to buy. Demand for all land is strong whether amenity or agricultural with prices holding firm and a number of off market deals taking place. On the other hand, discussions with some local agents suggest price reductions and little buyer interest in what is available - I have seen one Somerset Rectory go under offer three times only to fall through in as many months. I also negotiated a 12% reduction off an asking price just recently with little trouble.

We have had the budget which wasn't so bad, we're out of the world cup, Wimbledon is over and reports suggest the chances of a double dip recession are 60% - 80%. Some may think, with the current economic uncertainty and lack of available credit facilities that the property market will struggle to build on it's recent momentum -this may be true in many areas and the lower end of the market. What I know is that the demand is still there in the areas in which I operate and I have to move pretty fast if I see the property a client wants.

Guide prices aren't always what they seem.

noreply@blogger.com (Hugo Busby) — Wed, 28 Apr 2010 10:38:00 +0000

When looking around for a house to buy, it's only natural to assume that the guide price is an indication of true value or thereabouts. Not so, these are often set against an Estate Agent's advice and can often be brought about by debts, ambition or a chancer who wants to see if someone will pay a premium to the market with no real intention of selling. When assessing the market value of a property and carrying out research into local values or the specific history of a property, one often finds that properties are for sale at up to 30% more than their true value and on the odd occasion some are undervalued.

Buying a house is not easy, as the mixture of emotional want, need and sometimes desperation can distort objective decisions. You feel that if you save £10,000 or more you have done well but it can be a lot more. It's knowing the local market and values that really helps make the right decision and it often pays to get some assistance and advice.

Hidden gems - are off market sales a myth?

noreply@blogger.com (Hugo Busby) — Wed, 24 Mar 2010 17:30:00 +0000

Buying agents often sell themselves on having the inside track on property coming to the market and that they have access to a property prior to an agent marketing it. Well that's true and largely because of long term relationships and frequent contact built up with Estate Agents that members of the buying public do not share. One client recently said they had come to me for two reasons. The first that it was just not possible to keep travelling such a distance to be disappointed by what they saw and second, they found that due to a shortage of quality country houses and second homes most had been sold prior to marketing. Unfortunately, this is all true. The good stuff has always gone first.

So what of the off market theory. Well, it happens a lot in my area. You get on the information highway and property keeps cropping up. I now have to keep a written record of what's available, when and where in order to keep up with it. We can be talking of situations where plans have been made to sell but the date is set 18 - 24 months down the line. A sale can still take place with a deferred completion if it's the perfect home for the buyer. I keep repeating myself, but here in Dorset and the surrounding counties - if you see the perfect property, buy it. It could be years before you see something similar again.

Land and marriage values.

noreply@blogger.com (Hugo Busby) — Mon, 15 Feb 2010 17:18:00 +0000

These days most people in the countryside crave a small piece of extra land especially if they have none or only a little. Many want more than a little. Demand can be high and competitive if it is near villages and towns.

Before buying, you should carefully consider it's use under your ownership as land does not take care of itself whether woodland, amenity, arable or pasture. It requires some level of management to keep it in good health. Also the tax implications need consideration which is another subject in itself although many will be aware of the tax advantages of agricultural land and inheritance tax.

Acquiring land near or adjacent to your property is not always easy - it can take time, a lot of patience and sensitive negotiations.

The value of land has risen considerably in the recent past, whatever the type and quality. In effect, it has caught up with property and the buyer profile has changed whether for amenity, equestrian or agricultural use. The knock on effect has been that valuing land is not straightforward whether "bare" or "enhanced" in appearance. One factor that will form part of the equation is "marriage value". By this I mean, does it add value to your property regardless of the vendor's use for it? A rule of thumb is the smaller the parcel, whether for a tennis court or orchard, the more expensive the price per acre. There is no science to this and it boils down to whether it is worth the vendor's time and trouble against the price offered. Do not assume that because it is currently in agricultural use or part of a farm that you will pay agricultural prices.

Let's say agricultural land is worth on average £5,000 per acre - buying a small piece of this land could end up costing anywhere from £10,000 to £150,000 per acre pro rata. I can site numerous examples where a paddock or field has sold for prices in this range. However, it is not only the price but the negotiations that can be testing. I recently bought some woodland for a client which he had been after for 5 years. It required a high level of patience and helped to involve a third party. It may sound strange but people would far rather have an agent involved as a go between than risk a falling out with neighbours or clash of personalities.

I believe there is nothing like a direct approach in these situations. Too often I know of people who have lost out on land and indeed property because they were working on a strategy or thought they were the only person with an interest.

So be bold but do not be surprised at what some vendors ask for a small piece of land. Remember, for some, it makes no difference whether they sell or not but the value to your property aside from personal enjoyment can be be in the region of 10% - 20%. You should bear this in mind when you make the initial offer.

House buying and the property market.

noreply@blogger.com (Hugo Busby) — Thu, 07 Jan 2010 11:24:00 +0000

People and clients often try and predict the market. If we all knew the answer then we would not be so prone to such indecision when it comes to buying property and our advice would be much in demand. Now and in the past, many nervous clients have asked "should we buy now or wait?" or "I read in the paper prices are due to fall" and so on. Whatever you think, you can nearly always find commentary to back that particular view. My advice is simple, if you are looking for the perfect country house or cottage, don't lose it by trying to predict the market. Prime property in good locations in the south west will always sell and if you find that dream home, having searched for a year or more - buy it. It could be several years before you find another, just get some good professional advice and press on. I recently found and acquired an outstanding country house privately for clients and yet they still were concerned about whether it was the right time to buy, what about the election, were they paying too much, etc. They had been looking since before the last election and had found nothing as good as this. I can add they bought it well and I could sell this particular house all day, every day. It had been with the previous owners for over 30 years and was a real gem and just what many wanted - 6 bedroom period house, formal gardens, river frontage, land, stables, outbuildings and outstanding views and location. When you find the right property do not hesitate or worry too much about predicting the market - go for it! You'll never regret it.

Scarcity and it's impact on property prices.

noreply@blogger.com (Hugo Busby) — Sun, 20 Dec 2009 11:26:00 +0000

It's well documented that good property in the right location always sells or rents whatever the market conditions. And, in the areas I cover being primarily Dorset, south Somerset, east Devon and south Wiltshire, this is always true. It's very simple, there are huge numbers of people looking to move and relocate to these areas whether to rent or to buy. At the middle to upper end of the market there is only a finite supply and when it appears on the market, if it does, it goes pretty quickly due largely to scarcity. It's a little like the latest must have product - don't think it will hang around and when it's gone, it's gone. Scarcity drives up values and can lead to competitive bidding and pricing.

So, you need to get organised and plan ahead for that perfect property. A lot does happen by word of mouth and that's life but there are a couple of things you can do. For rental property agents will be given notice one to two months before availability and this is when you need to start talking to them. They will also be carrying out appraisals for potential new clients on a daily basis so you have to keep in touch and be their friend. The same goes if you are buying, estate agents often carry out marketing appraisals up to six months prior to marketing and occasionally longer periods. Make friends with them and you might get to know of something prior to market even if it's a brief description. At least you can get your finances, etc organised. All this is hard work and time consuming but it can lead to results and happy people.

Renting a house or cottage in the West country.

noreply@blogger.com (Hugo Busby) — Sun, 20 Dec 2009 11:25:00 +0000

I get a lot of enquiries about finding a property to rent. The main reasons are either relocation from abroad, from people looking to try an area prior to purchase or because they have children at local schools. It can be surprising what is out there and there are many private landlords who choose to work privately rather than through letting agents. Often these can be the better properties where the landlord has lived there themselves or see it as more than just an investment. One of the best sources of quality country houses and cottages to rent are country estates and this requires a little bit of local knowledge in order to track them down. I frequently place people with such landlords and it can end up being a better experience for all.

However, here is what you need to bear in mind. Under most tenancy agreements landlords are required to give two months notice and a tenant one months notice and this can vary depending upon the fixed term of the agreement and other clauses. So when you want to start looking you need to allow approximately two calendar months before you wish to move in. Occasionally you can get a longer lead period but it helps if you know the property you want and you are already in touch with the landlord who has said it will be available. Sometimes this does not always work to plan, landlords can change their mind and they are unlikely to agree to put any such offer in writing. It helps to have a plan B just in case. Also bear in mind that most good property like the sales market rarely sees the Internet. The winter let is always a good option if you only require a short term rental for up to six months as many quality holiday lets become available at the end of the season and you can get some good deals if you know where to find them.

A word of warning, always make sure you and the landlord take and agree a proper inventory and record of condition. Too often I have seen unfair situations arise on both sides as a result of this simple and inexpensive exercise.

Like most things in life it pays to plan.