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Now that school is out and the sun is making an overdue appearance, a property buyer’s thoughts inevitably turn to holiday homes. And, whether because of rising air fares, carbon-footprint dilemmas or the strong euro, Britain is looking increasingly attractive. But where should you buy - and, given all the doom and gloom out there, is now the time to snap up a bargain?

The prices of large homes in traditional honeypots such as Salcombe, in south Devon, West Wittering, in West Sussex, and Southwold, in Suffolk, appear to be remaining steady despite these straitened times, because buyers don’t want to miss the chance to purchase property with direct sea access and the best views. “In these hot spots, houses don’t come up often, so they are holding their own,” says Michael Bedford, of Bedfords estate agency in Aldeburgh, Suffolk.

“People are increasingly looking to holiday in England – they say to themselves, ‘Petrol’s gone up 50p, so let’s buy a £500,000 house.’ ” Elsewhere, however, it is possible to pick up a bargain, as overstretched second-homers find their beachside pad is one luxury too many.

“At Garrington South West, we’ve seen an increase in supply in secondary holiday areas,” says Phil Spencer, the property-search expert and Sunday Times columnist. “While Salcombe is holding up well, more people are releasing property in cheaper locations nearby, such as Dart-mouth, that they perhaps shouldn’t have bought in the first place.”

Liam Bailey, head of residential research at Knight Frank, agrees: “Many of the prestige properties in top locations might not come on the market in two or three generations. Prices haven’t collapsed, as some predicted, but look to negotiate a bargain if you’re breaking into the market. Houses are likely to be cheaper than last year and cheaper than in two years’ time.”

When searching for your summer pad, make sure you aren’t buying it only for the roses around the door, Spencer advises. “Don’t buy a house just because it’s pretty. Summer holiday homes are all about ease. Make sure the house is within walking distance of shops and the beach, has access to parking and has a good view.”

Read the full article at Times Online

Labels: holiday homes, Knight Frank, property analysis, property prices, second homes, UK coastal property guide, uk housing

Knight Frank report says average prices rose 13% over the past year; compared to 5% British average.

THE Scottish housing market is set to defy the credit crunch and will continue to outperform the rest of the UK, according to a new report.

High rates of employment in the financial sector and sustained demand among young professionals for mid-priced city centre homes should mean that Scotland will escape “relatively unscathed” from the turbulence in the global financial markets, according to the study by estate agents Knight Frank.

The firm's analysis of house prices over the past year has revealed that they rose by 13% in Scotland, the biggest increase outside Greater London. Across the UK, the average price rise was 5.2%. The cost of new homes in Scotland rose by 20%.

While the credit crunch caused by subprime lending in America will dampen the market, the report predicts that prices in Scotland will continue to rise this year, bucking the trend across the rest of the UK.

Knight Frank's Scottish residential review predicts average house price inflation of 1% in Scotland, while prices elsewhere are expected to fall by an average of 3%.

“In Scotland the market is not as volatile as the rest of the UK, it doesn't have the same boom and bust culture,” said Liam Bailey, Knight Frank's head of residential research, who compiled the report.

“You don't tend to get the kind of speculation you get in the rest of the UK and that makes Scotland a healthier market.

“At best price growth will be 2-3% for this year and sales volumes will be down about 20%, but it's not a crisis.”

Bailey said a number of factors would protect the Scottish housing market from the downturn predicted for the rest of the UK.

These include the greater availability of social housing, fewer owner-occupiers, the strength of the financial sector - where the number of people employed directly has increased by over a third over the past seven years to more than 113,000 - and higher levels of employment.

The proportion of people of working age in employment rose in Scotland to 76.5% last year, 2% above the UK rate.

Gwilym Price, professor of urban economics and social statistics at Glasgow University and chairman of the Scottish Housing Economics and Finance Network, is in agreement with the report's findings: “The credit crunch is very new territory and difficult to anticipate but I don't think we will see a house price crash in Scotland,” he said.

Original article posted on TimesOnline

Labels: House market, Knight Frank, Scottish property market