Spotlight: 

Prime Country Residential Markets

Prime Country Residential Markets
Prime Country Residential Markets

12 April 2016, by Lucian Cook

The security of an established prime location or an emerging hotspot with long-term promise?

Much to the continual amusement of my younger colleagues, I have started to embrace the digital age.

I now buy my music on iTunes and download it onto an iPod Nano, which I am told will shortly be obsolete and forever confined to history. Whenever I do this I am faced with the dilemma as to whether to buy an album from an artist I know well or take the advice from a suspiciously named Genius function, which suggests alternatives from bands I might like but have never heard of. Every time, I agonise over whether to play it safe or take a punt on something that might expand my (admittedly limited) musical horizons.

 

When it comes to buying property we often face a similar conundrum. Do we look to buy into the security of an established prime area at a premium, or a less expensive area that our friends tell us is definitely on the up, in the hope it will pay dividends in the longer term.

With this in mind, and in the absence of a reliable algorithm, Savills research team have been poring over house price data to compare and contrast established and emerging prime locations. Instead of searching by musical genres such as classical, jazz, punk, pop, rock or the other stuff that teenagers listen to, we have categorised our analysis by locations that include city and country, commuter and coastal. A snapshot of the results is contained in the following pages.

Market implications

These choices take greater significance in a prime regional housing market which has struggled to gain momentum over the past five years, but which is beginning to see a greater flow of wealth out of a subdued London market. During this time, values have only risen by 5.9%, though this average hides significant variation by location, type of property and price bracket.

As we look forward, some challenges remain, a pending EU referendum and a weakening economic outlook chief among them. There is also a different tax landscape to contend with, one with higher rates of stamp duty at the top end and surcharges on the purchase of additional homes.

While this is likely to mean the market remains price sensitive in the short term, it is also likely to encourage people to search out greater value, exploiting the value gaps between London and the commuter zones and the areas beyond, as we move into the next part of the prime housing market cycle.

Articles from Spotlight: Prime Country Residential Markets – 2016

The Prime Markets Beyond London

The price gap between London and the prime regions has begun to narrow, albeit very slowly

The Value Of Our Natural Heritage

The price gap between London and the prime regions has begun to narrow, albeit very slowly

Urban Living Still On Trend

Attractive urban locations with strong transport links and good schools continue to outperform rural destinations

Commuters Are Back On Track

Commuters can save £3,048 on their house price per additional minute of commuter journey time from London

Oh, We Do Like To Be Beside The Seaside

Buyers from all life stages are attracted to the irresistible charm of a property by the sea

How Values Differ Across The Country

The cost of prime property varies significantly by location

 
 

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Key contacts

Lucian Cook

Lucian Cook

Director
Residential Research

Savills Margaret Street

+44 (0) 20 7016 3837

 

Kirsty Bennison

Kirsty Bennison

Associate
Residential Research

Savills Margaret Street

+44 (0) 207 016 3836

 

Frances Clacy

Frances Clacy

Associate
Residential Research

Savills Margaret Street

+44 (0) 20 7409 5905

 

Gaby Day

Gaby Day

Research Analyst
Residential Research

Savills Margaret Street

+44 (0) 207 299 3003

 

Justin Marking

Justin Marking

Head of
Global Residential

Savills Margaret Street

+44 (0) 20 7016 3810

 

Lindsay Cuthill

Lindsay Cuthill

Head of
Country Department

Savills Margaret Street

+44 (0) 20 7016 3820