East Midlands Review

reviewEast Midlands

Spring 2011

chestertonhumberts.com

this editionOur commentary at the start of 2011 analyses market performance in the residential, rural and commercial sectors during 2010 and looks forward to the prospects for the coming year.

2010 was a difficult year in particular because of the uncertainties overshadowing the Election and the economic situation. Chesterton Humberts, in spite of this, has seen its market share increased substantially as vendors see the benefits of working with a firm with such a strong national and East Midlands presence.

The end of the year saw the firm winning the Gold and Silver awards in the fields of residential letting and winning the National Estate Agents Chain of the Year both of which recognise the professionalism, commitment and marketing achievements of the company.

Of particular note during the year has been the substantive growth in farm values, at levels exceeding expectations that has been underpinned by the improving market for commodities.

We hope you will find the articles of interest and if we can be of any further assistance please do not hesitate to call any of the relevant people/offices.

The Chesterton Humberts East Midlands Teams

The residential property market is continuing its’ recovery in 2010, with the slide in property values receding and an increased number of sales transactions. The Chesterton Humberts four East Midlands offices agreed the sale of in excess of £100 million of property in 2010, a substantial increase on 2009, including several prime country houses in the region.

The year started with strong interest across the mid and upper market continuing through to the summer. The market traditionally slows as we approach the festive season but last year with the poor weather towards the end of the year Christmas seemed to have arrived in many parts of the country

very early. Banks remain very cautious in their lending although Mortgage funding has become more accessible assisting the recovery. National statistics have indicated a slight fall in house prices.

Although there is no sign of any dramatic downturn in values, vendors keen to sell need to ensure their properties are sensibly priced in order to attract interest.

We do expect the volume of transactions to increase in 2011, with subdued growth in house prices and the mortgage market continuing to recover. Buyers will continue to expect value for some time to come.

East Midlands Residential Report

Tudor Lodge, Harlaxton £875,000The Old Rectory, Horsington £1.2m

The Old Rectory, Cambridgeshire £1.3

Peter Mills


Farms have continued to sell extremely well, both publicly and privately.

In the first two months of 2010 alone, Chesterton Humberts sold over £30m of farmland with the East Midlands alone having sold over 4,500 acres .

With the agricultural sector performing well and a limited supply of land on the open market, land prices are continuing to rise. The RICS Rural Land Market Survey reported at the end of June that prices had increased during the first half of 2010 by over 6% and that the average price of farmland at that time was £13,530 per hectare (£5,478 per acre), compared to £12,715 per hectare (£5,148 per acre) at the start of 2010. In some cases we have seen land achieving in excess of this.

There is a great deal of land currently being sold, most of which is exchanging hands privately or even before it comes to the market. We estimate that private sales account for at least 25% of the overall market and this will increase as vendors opt for ultimate discretion when it comes to selling an estate, farm or farmland.

Farmers still represent the majority of buyers, either expanding their acreage or looking to relocate to a different part of the country.

Private investors, funds and international buyers are still active in the market. The Danes and Irish are no longer so prevalent, but buyers from the Middle East have begun to enter the market.

Our predictions for 2011 are that prices will continue to rise and the range of prices per acre of Grade 3 arable land will widen, currently it stands at £5,500, to £12,000 depending on the location. Supply will remain limited throughout 2011 unless interest rates increase causing more land to come to the market and we anticipate that commodity prices will remain stable at their current levels.

The East Midlands has seen a number of substantive equestrian properties launched to the market this year which have included:

South Lodge, Ropsley which included a principal house, two cottages, extensive stabling and equestrian and other buildings in all approximately 60 acres.

Laughton Manor & Equestrian Centre at Folkingham which includes a Grade II listed manor house, extensive competition and livery facilities with 86 acres.

There has been strong interest in these properties both from a local and national level.

We have also been successful in letting Stibbington Stud close to Peterborough again with an exceptional manor House, stabling, gallops and 40 acres.

The East Midlands remains an important destination for those seeking equestrian property because of its accessibility and the range of competition venues in the locality.

Prices have remained firm but in line with the residential market. Residential elements have come under pressure with prices falling marginally during the year.

If you are thinking of selling in the East Midlands, Chesterton Humberts offer an unrivalled service through our network of offices and our bespoke Country Department, to service your requirements.

Farmland Prices on the Increase: Farms have continued to sell extremely well, both publicly and privatelyAndrew Pearce MRICS

Hall Farm, Cawthorpe £1.675 m


The last quarter of 2010 remained a challenging time for the commercial property sector. It is still very much a tenant’s market with significant incentives being offered by landlords as well as reduced headline rents.

The office sector still remains as the biggest victim of the recession for the East Midlands. Those buildings which are of interest to the market tend to be of a smaller unit size, and tenants are unwilling to commit to long lease periods with three years now being a recognised benchmark. Landlords may have to concede break clauses throughout the term which has a negative impact on the investment value of their asset.

Enquiries in the industrial sector have seen an improvement over the Winter period but there is certainly some skill required in

order to conclude a transaction. We have recently agreed terms to let an industrial unit on the Alma Park Industrial Estate in Grantham to a local company looking to re-locate part of their production line. The landlord was keen to discuss terms after the property had been vacant and subject to empty rates liability.

Since the commencement of 2011, we are pleased to report increased levels of activity. The Professional Team has witnessed a significant increase in the demand for valuation work and our Agency Department have been busy negotiating terms on a multiple number of retail units following an increased number of enquiries.

The reduced levels of speculative development will mean that when the market does return to its full force, there will be a shortfall of good quality

accommodation which will mean that some landlords and developers will be able to capitalise on their position.

In difficult market conditions it is local knowledge that counts where we remain well placed to serve our clients whether selling, buying or letting any type of commercial property in the region. Our capacity in the agency environment, as well as in the area of professional services, means that we can provide a solution to any requirement.

Commercial Property Overview

The summer of 2010 has seen substantial changes in the planning system, creating uncertainty which will have a direct effect on housing, local communities and planning authorities, as well as landowners.

These changes are the result of new government policy aimed at simplifying the planning system and allowing local communities to be more involved in the future of their environment.

In June the government took the first steps towards decentralising the planning system by giving local authorities the opportunity to prevent overdevelopment of neighbourhoods and “garden grabbing” and over development of neighbourhoods. Previously gardens were in the same brownfield category as derelict factories and disused railway sidings, however, Planning Policy Statement 3: Housing, has now been amended to exclude private residential gardens from the definition of “previously developed land”. Decentralisation Minister Greg Clarke, also scrapped the minimum density target of 30 dwellings per hectare which has contributed to the ongoing lack of

family housing and encouraged developers to build one or two bedroom flats, despite a high demand for affordable family homes.

In July 2010 regional strategies were revoked, further demonstrating the coalition government’s commitment to return decision-making powers on housing and planning to local councils. With central targets being replaced with powerful incentives to build new homes. local planning authorities will now be responsible for establishing the right level of local housing provision in their area and identifying a long term supply of housing land without the burden of regional housing targets.

Some authorities may choose to stick to these regional targets rather than setting their own and are being urged to quickly signal their intention so that communities, landowners and developers know where they stand.

Councils who take action now to grant planning consent and support the construction of new homes where they are needed and wanted, will receive direct and substantial benefit for doing so.

Under the Community Right To Build, local rural housing projects that secure the support of 75% of voters will go ahead without the need for planning permission. Not only will this give rural communities the power and freedom to deliver the homes they really want, it is also intended to speed the process up, with construction commencing more quickly on housing schemes.

The overhaul of the planning system and abolition of Regional Strategies is intended to simplify the planning system, encourage local participation and transparency.

Given this period of uncertainty in the planning regime, and slow activity in the housing market, there is a healthy appetite amongst developers and house builders for strategic housing sites which have a 3 to 10 year planning journey ie sites that need to be allocated in Local Development Frameworks.

update: The Planning System

Tim Murgatroyd MSC FRICS

Joanna Plant MRICS

Warwick Brewery - May 2010

chestertonhumberts.com chestertonhumberts.com

Selling Property by Auction

Our east midlands offices

Grantham14 Finkin StreetGrantham, Lincolnshire NG31 6QZ

T: 01476 514514F: 01476 571750E: [email protected]

Lincoln2 Eastgate, Lincoln, Lincolnshire LN2 1QA


Nottingham8 Oxford StreetNottingham, Nottinghamshire NG1 5BH


Stamford5 Ironmonger StreetStamford, Lincolnshire PE9 1PL


Chesterton Humberts recently published its Sporting & Social calendar for 2011 – copies are available from all offices.

Chesterton Humberts Network


International Offices

Australia, France, Gibraltar, Italy, Libya, Russia, Singapore, South Africa, Spain and U.A.E.

National OfficesBlandford 01258 452343

Bridport 01308 422215

Canterbury 01227 452780

Cheltenham 01242 513439

Chew Magna 01275 333433

Chichester 01243 531010

Chippenham 01249 444557

Cirencester 01285 650955

East Grinstead 01342 326326

Grantham 01476 514514

Honiton 01404 42456

Lincoln 01522 546444

Ludlow 01584 877778

Marlborough 01672 519222

Newark 01636 701401

Norwich 01603 661199

Nottingham 01159 505444

Petersfield 01730 261612

Salisbury 01722 324422

Sevenoaks 01732 741212

Shaftesbury 01747 853492

Sherborne 01935 812323

Southampton 023 8063 4744

Stamford 01780 762849

Taunton Residential Sales 01823 288484

Taunton Mansfield House 01823 331234

Tenterden 01580 765858

Tetbury 01666 502284

Truro 01872 278288

Wadhurst 01892 782424

Yeovil 01935 477277

Yeovil Commercial 01935 415454

York 01904 611828

London OfficesBarnes 020 8748 8833

Battersea Lavender Hill 020 7924 6191

Battersea Rise 020 7924 4400

Camden & Regents Park 020 7267 2053

Canary Wharf & Docklands 020 7510 8300

Chelsea 020 7589 5211

Chiswick 020 8995 3443

Covent Garden 020 3040 8300

Fulham Road 020 7384 9898

Fulham New Kings Road 020 7731 4448

Hampstead 020 7794 3311

Hyde Park & Marylebone 020 7298 5900

Islington 020 7359 9777

Kensington & Notting Hill 020 7937 7244

Kentish Town 020 7267 1010

Knightsbridge & Belgravia 020 7235 8090

Little Venice 020 7286 4632

Mayfair 020 7629 4513

Pimlico & Westminster 020 3040 8201

Putney &Wimbledon Village 020 8246 5959

Sheen 020 8104 0580

Tower Bridge 020 7357 7999

SEPTEMBER

1 Shooting Duck, Goose & Partridge Season Starts

1-4 Equestrian Burghley Horse Trials, Stamford

2 Football Bulgaria v England, Sofia

3 Cricket 1st ODI England v India, Durham

6 Cricket 2nd ODI England v India, Southampton

6 Football Euro 2012 Qualifier England v Wales,

Wembley

9 Cricket 3rd ODI England v India, The Oval

9-23 Oct Rugby World Cup starts, New Zealand

10 Social Last Night of the Proms,

Royal Albert Hall

11 Cricket 4th ODI England v India, Lord’s

11 Motor Racing Formula 1, Italy

16 Cricket 5th ODI England v India, Cardiff

16-18 Motor Sport Goodwood Revival Meeting

25 Motor Racing Formula 1, Singapore

OCTOBER

1 Shooting Pheasant & Woodcock Season starts

2 Horse Racing Prix de L’Arc de Triomphe, Longchamp,

Paris

5-9 Equestrian Horse of Year Show, Birmingham

7 Football Euro 2012 Qualifier

Montenegro v England

9 Motor Racing Formula 1, Japan

16 Motor Racing Formula 1, Korea

23 Rugby Union World Cup Final, New Zealand

30 Motor Racing Formula 1, India

NOVEMBER

13 Motor Racing Formula 1, Abu Dhabi

17 Social Beaujolais Run

18-21 Social Beaujolais Nouveau Festival, Beaujeu

France

27 Motor Racing Formula 1, Brazil

DECEMBER

10 Shooting Grouse Season Ends

26 Horse Racing King George VI Chase, Kempton Park

social &

Chesterton Humberts are experienced property auctioneers. In an uncertain market Auction is particularly suited to the disposal of all types of residential, rural, commercial and industrial property.

It is particularly attractive for Trustees, Executors, Powers of Attorney and Court of

Protection and equally suited to corporate and private sellers.

Our first collective sale of 2011 in the East Midlands is arranged for the 16th March 2011.

Initially for advice and a chat please contact Peter J Benson on 0115 9505444.

Particular highlights are the sponsorship by Chesterton Humberts of Polo In The Park at the Hurlingham Club on the 3rd, 4th and 5th June and the National Team Chase finals in Northamptonshire on the 3rd April.

Participation in the CLA Game Fair which this year is to be held at Blenheim Palace, Oxfordshire on the 22nd, 23rd and 24th June.

The Rural team will also have a stand at the Cereals Event in Lincolnshire on the 15th and 16th June.

Documents

East Midlands Review