Agribusiness update December 2013
    The country house that pays its way?

    The country house that pays its way?

    "It should be no surprise that mansions are expensive to own and operate, they always have been, and the notion that a large house might be able to pay its own way is a relatively modern one."

     

    Crumbling piles

    We’ve all seen the television programmes along the lines of ‘Country House Rescue’. The hapless owner of a crumbling pile hanging on by their financial fingertips as the ‘expert’ presenter berates them for the viewers amusement. It should be no surprise that mansions are expensive to own and operate, they always have been, and the notion that a large house might be able to pay its own way is a relatively modern one.

    Decline and fall

    The traditional country house went into what seemed a terminal decline following the second world war, with many demolished, and many more converted into commercial or institutional use. Hotels, Flats, Offices, Corporate Headquarters, Nursing Homes or Colleges all became relatively normal, with the more exotic becoming visitor attractions, theme parks or zoos – many continue as such to this day. Those owners who could afford to retain ownership usually had other means of generating income such as a farm or tenanted property, meaning that the family home could be supported by commercial activity.

    The country house revival

    The last thirty years have seen a revival, and many houses that had been converted to commercial use, are once more being revitalised as family homes. Moreover, the more commercially minded have found ways for houses to generate revenue, and still remain as family homes. The issue is the degree of disruption and the compromise involved. Hosting a wedding or shooting parties every weekend is only for the most committed, and the uses that generate significant revenue are relatively few. The ideal that most owners would like, is the simple one off annual event that pays very well – one months potential inconvenience in return for 11 months peace and quiet, with the annual running costs paid for.

    Exclusivity

    The potential client base might be the celebrity or billionaire looking for a discreet family holiday, the investment bank needing a private corporate retreat, the luxury car maker launching a new model, or the elite event organiser creating a spectacular private event. The fees to the owner can be significant, tens if not hundreds of thousands of pounds. However this kind of premium is rare, therefore the product must be very special. Exclusivity is key to this market.

    Best of breed

    Only the very best houses will be of interest, and competition is tight. Outstanding architecture, the right location, amazing interiors, modern conveniences, security, privacy, and the essential infrastructure such as catering kitchens and staff will all be necessary. In short, the country house needs to be able to compete with the modern boutique hotel, but with the privacy and exclusivity that only a private house can offer. We already work with event organisers who organise serious events, and these opportunities do exist. The key factor is understanding the market, and making sure that owners have the right ‘product’ to offer.

     
     

    Key contacts

    Philip Eddell

    Philip Eddell

    Director
    Country House Consultancy

    Savills Newbury

    +44 (0) 1635 277 709

    +44 (0) 1635 277 709