The Trump Effect

The election of Donald Trump to the post of US President might seem like a distant geo-political anomaly that will have little bearing on our East Anglian bubble. After all, Suffolk has proved not only remarkably resilient to Brexit but surprisingly buoyant – despite the uncertainty that reigns over our cousins in the capital, only 90 minutes down the road.

However, given our proximity to London, we should be pricking our ears to the opportunity that the knock-on effect of the new President Trump could engender for us.

As the world takes stock of this new political landscape, our counterparts in the capital are preparing to see a movement of affluent Americans from major cities across the US into Prime Central London.

The pound remains attractive to dollar based buyers in the wake of Brexit, who still see relative market stability in London and, as a result, view it as a place to invest their money in property.  Keen to shelter from any ensuing political and economic upset, a number of buyers registered with our London offices during the presidential campaigns, with a view to progressing their purchase pending a Trump victory. Now that has happened, follow up interest is already underway.

There is also much anticipation of a potential power shift between New York and London, with a new wave of professionals, originating from Hong Kong, Singapore, Malaysia and even Tokyo, as well as investors from the Middle East, now looking to do business in alternative locations to the US. London is, inevitably, a primary contender for such activity, especially given the stability that our Prime Minister, Theresa May, provides, as well as the financial reassurance that Mark Carney brings, following confirmation that he will remain in role as governor of the Bank of England until 2019.

Of course it’s not just international buyers who we expect to see searching for refuge in London; there is also a population of ex-pats residing in the US, who have fluctuated for some time over their decision to return to the UK. For many, the Trump victory has forced their hand, with the prospect of living under his leadership simply too unpalatable.

This influx of jetsetters and ex-pats is set to inject some much needed liquidity into the London market, empowering homeowners who have otherwise been too paralysed by uncertainty to move.

So how does this impact on our local market? This will hopefully free the London buyers up to start buying in the country again. With its comparative affordability combined with its excellent commutability, Suffolk is the destination of choice for many. This should help stimulate the top end of the market again as the £1m plus market has struggled since 2014 when the stamp duty thresholds were so significantly changed. And if our government is wise enough to announce a reduction in SDLT in the Autumn Statement, we could have quite a bit to smile about.

Caroline Edwards
Partner
Residential Sales, Long Melford
T: 01787 888622
E: caroline.edwards@carterjonas.co.uk

Suffolk’s highest HNW revealed...

High net worth individuals – known by the acronymn HNWs – are coveted by those companies with something to sell in the retail, professional or financial services sectors, including property agents.

HNWs are not only attractive for their wealth but for the influence they wield in setting trends and the cultural values of our times.  It’s accepted in our consumer society that HNWs set a tone and lifestyle to which the rest of us non-HNWs are encouraged to admire and aspire.

How fortunate then are we in Suffolk that one of our most stellar HNWs is so off the scale that mere mortals cannot ever attain his lifestyle and achievements because it’s a horse!  He’s champion racehorse and super-stud stallion, Frankel.

Setting aside phenomenal achievements and earnings for Juddmonte Farms on the turf during Frankel’s illustrious racing career, in retirement the eight-and-a-half year old stallion is, indeed, a most coveted creature.

Worth around £12.5 million per annum, Frankel is Suffolk’s highest Horse NW. His fee at standing is circa £125,000 per mare and he’s covered about a 100 since his time at stud.  With intercontinental progeny winning races presently Frankel’s ‘performance’ fees can only rise next year –that’s without the anticipated achievements of his southern hemisphere offspring whose racing season is yet to play out.

Frankel puts the Horse in HNW when it comes to Suffolk. There’s fun in such flippancy and word play, but the influence of Newmarket in our county’s wealth and prominence on the global stage is seriously undeniable.  We all benefit from that, whether or not we consider ourselves of the “horsey-set”.

Newmarket is the home of the international horseracing industry. Without it, Suffolk would be the poorer both culturally and in cold, hard cash terms. Newmarket’s horseracing industry makes an economic contribution of £208m to the local economy and 8,500 jobs are linked to the industry in the area (source: Newmarket Horseracing Industry by SQW, September 2015).

Horseracing, as a sport, is second only to football in the UK. While Cheshire is home to Premier League footballers of both Manchester clubs in modern times, Suffolk has been home to the Sport of Kings since the 17th Century.

As the county hosting an über modern industry of global investment Suffolk commands a unique position.  Much like the revamped National Heritage Centre for Horseracing and Sporting Art that relaunched in Open Newmarket Weekend in the middle of this month, our heritage attracts attention.  Yet like Jilly Cooper’s latest novel “Mount!” - based on the racing and stud industry - Suffolk’s a best seller. And there’s something so amusingly typical of our county’s unique charm that our highest earner has four legs as opposed to two: fabulous Frankel – our highest Horsey Net Worth!

Caroline Edwards
Partner
Residential Sales, Long Melford
T: 01787 888622
E: caroline.edwards@carterjonas.co.uk

Suffolk: BREXIT-resistant

Following the Referendum I expected to see a negative reaction in our local property market but, thankfully, I was wrong. This can’t be said for all areas across the UK but Suffolk has, fortunately, proved Brexit-resistant.

Sixty percent of Suffolk’s electorate voted to leave Europe and Brexit has made us take stock. We face a different kind of future and times are changing but we are optimistic about the property market for the year ahead.

In July I tweeted about our all-time record selling month including sales agreed, exchanges and completions; the Autumn market looks very promising too. 

Interestingly, in the past four weeks, a few Australian buyers have registered with us in their search for property. One such couple explained to me that the exchange rate was fuelling their decision to buy now and they had chosen Suffolk specifically for the vibrancy and friendliness of our well-served villages. 

They appreciate the rusticity of our countryside and coastal regions and also the general lack of one-upmanship - they like our relaxed vibe. They had carried out due diligence on where best to buy in the UK which had led them to fall for Suffolk’s rosy glow and its comparative good value for money.

Lavenham and Long Melford have been top of their search list which brings me on to the changing face of our high streets in our market towns and larger villages. Walk along either of these high streets now and you get a sense of new, sophisticated café societies emerging.  Suffolk has grown up and this changing face is one of the most obvious indicators as consumer trends change. The growing café and gallery culture combines with stylish boutiques stocking high-end, trendy brands.

Coastal regions like Aldeburgh and Southwold are akin to Chelsea-on-Sea these days but, in my mind, the town that stands out for the most significant transformation in recent years has to be Hadleigh. 

Few high streets offer as much as Hadleigh’s does. A new and excellent selection of shops, boutiques, restaurants & pubs, everyday amenities, doctors’ surgery, schools, sports facilities and clubs and all within walking distance of the other.

The town has a beautiful selection of colourful houses and is surrounded by stunning countryside with riverside walks. It hosts the annual, agricultural Hadleigh Show and also benefits from good access for both Manningtree and Colchester stations; add to this, the success of industries on its outskirts such as Celotex and Jim Lawrence. 

Hadleigh is a perfect Suffolk example of how country living, commerce, agriculture and tourism can co-exist in a comfortable and natural way.

Maybe this charming self-sufficiency is another reason why Suffolk is, so far, proving to be Brexit-resistant.

Caroline Edwards
Partner
Residential Sales, Long Melford
T: 01787 888622
E: caroline.edwards@carterjonas.co.uk

Super Suffolk – in a class of its own

Every year Carter Jonas takes part in the Hadleigh Show; we run the “Guess the Weight of the Bullock” competition with the bullock always provided by the lovely farmer, Bob Mannings - it’s a great fun event and good to see so many people taking part, with the farmers and their children taking their guesses more seriously then most!  We love the day and I believe the show encapsulates Suffolk at its best with such a mix of people, animals and events all blending perfectly in the melting pot.

This is one of the earlier country shows of the year in our region and held at, what I believe to be, the most beautiful time of year.  I think it’s hard to beat Suffolk in May and June.

A question I am frequently asked by national journalists, as well as by those in the early stages of considering a move here, is “Why Suffolk?”. It’s easy to know where to start, and difficult to know where to stop, but here goes:

Suffolk is the secret jewel of East Anglia.  It’s the seventh biggest county in England sandwiched between Essex, Norfolk and Cambridgeshire while stretching out to 45 miles of National Heritage Coastline.  Our rivers are muddy and rugged and utterly charming as they flow down to our colourful coastal towns and villages.  The rich farmland and gently rolling countryside is not infrequently described as voluptuous and a journalist, who once described Suffolk as having “roses in her cheeks” got it pretty bang-on I’d say!

It’s no surprise that artists, actors and the media are drawn in by the bucolic scenery, rural tranquility, laid-back lifestyle and discreetness of Secret Suffolk.  Just to name a few: Griff Rhys-Jones, Clive Owen, Bill Nighy, Ralph & Joseph Fiennes, Twiggy, Judi Dench, Nick Robinson, Anthony Horowitz, Stephen Fry, Ed Sheeran and Claudia Schiffer. The vibrancy of our arts and entertainment can also be enjoyed in highly popular venues such as Snape Maltings and at the Aldeburgh Festival.

What more?  We have excellent private and state education; we’re one of the safest and greenest counties in the UK; no motorway crosses our county; Stansted Airport is conveniently close without the noise impact; sell-out musical festival of Latitude; about 20 golf courses; brilliant sailing; horse racing at Newmarket; superb farm shops; food and drink festivals; excellent restaurants and pubs; picture book villages and stunning historic towns.

Our architecture varies from the traditional medieval timber framed houses, to brick and flint Victorian houses, to thatched cottages, to the rarer Georgian gems as well as stunning and daring contemporary designs.  The village of Lavenham has at least 340 listed buildings and Nikolaus Pevsner had two architectural volumes dedicated entirely to our county.

Suffolk has been voted for its best quality of life of any rural area in Great Britain; for its longest life expectancy and we’re the driest county with two more hours of sunshine each week than the national average.

It’s not just about community and culture though - we’re highly commutable too, especially along the Essex/Suffolk borders.  Manningtree Station was nominated as one of the most popular and friendliest commuter stations in the UK last year.

The prosperity of Cambridge ripples out to us and we have the lowest house prices within a 60 mile radius of London. Londoners often start off with a second home in our region, spend more time here, are seduced and change to a London bolthole instead.  We’re quite an addictive cocktail!

Caroline Edwards
Partner
Residential Sales, Long Melford
T: 01787 888622
E: caroline.edwards@carterjonas.co.uk

The gap between exchange and completion

There are many steps in the process of buying and selling - the final one being completion.  Most people understand that a sale becomes legally binding upon exchange of contracts and, at this stage, the completion date is written into the contract. On exchange a purchaser will pay a deposit of between 5-10%, and the remainder of the funds are paid on completion ie the day that you finally own your new home - lock, stock and barrel.

In the past, many sales had a gap of 4-6 weeks between exchange and completion but these days we often see this reduced to 2 weeks - sometimes (and for the brave only!) we even have simultaneous exchanges and completions.  But the gap is there to leave a welcome breathing space in which to organise the practicalities and detail.  Also, some mortgage lenders generally like a 7-day period within which to draw down funds.

And here is how to fill the gap:

Pack as soon as possible after exchange.  

Prior to exchange receive quotes from removals companies but don’t commit (ie pay the deposit) until your solicitor is confident of exchange.  This is especially difficult in busy periods such as Easter or Christmas -  and remember a lot can happen between ‘nearly’ and ‘actually’ exchanging.

If you’re packing and moving yourself on a DIY basis - give yourself plenty of time.  You can be sued under contract if you’re running well behind time on the day, thereby incurring your buyer additional removal costs.

Inform relevant utilities and services eg: gas, electric, water, phone, satellite, cable suppliers, TV licence, post office, bank, DVLA, your doctor and insurance companies etc.  Take meter readings on the day you leave.

The buyer will have been provided with the supply details on the Property Information Form filled in by the vendor - so the buyer knows who to contact to continue or change supplier.

The buyer MUST insure their new home from the day of exchange as you are now committed to buying it even if it burns down.

A few days prior to completion the estate agent will make arrangements in respect of the key handover. Generally this means we will collect a spare set from our seller and then meet the purchasers at the property with the key to the door.  It is important to note that we can only release keys once the seller’s solicitor has confirmed that the completion monies have been received.

Finally, emotions can run high prior to an exchange when the estate agent and solicitors are trying their best to dovetail an ideal completion date between seller and buyer.  This can get even more protracted when a lengthy chain is involved: holidays, school terms, bereavements, sheer practical and physical logistics can all create stumbling blocks. 

But, as with all things, don’t forget the bigger picture - compromise: it’s better to bend a little than break the sale.

Caroline Edwards
Partner
Residential Sales, Long Melford
T: 01787 888622
E: caroline.edwards@carterjonas.co.uk

Renewed activity in Suffolk’s £1m+ market

As residential sales agents, we are always relieved to get back to our desks in January knowing that December is behind us.  That being said, whilst December is a quiet month for agreeing sales, it is by no means inactive when it comes to the near-hysteria of meeting exchange and completion deadlines with almost everyone wanting to be settled in by Christmas!

Spring used to be the traditional peak-time for our market but this pattern has changed over the past five years:  we now have to be fully geared-up for the immediacy of very keen buyer demand through January and February – and this year is no exception.  In fact, the first two weeks of 2016 have been exceptional.

Whilst last year saw the strongest performances and demand for houses up to £800,000, we are now experiencing high demand in the early £1,000,000s and agreed four such sales in the second week of January.  The reason for this is Stamp Duty Land Tax (SDLT).  In last December’s Autumn Statement, George Osborne announced that buyers of additional residential properties - above and beyond their principal home - would have to pay 3 per cent above the current stamp duty rates from 1 April this year.  This has, in particular, really made the London second-home buyers jump off the fence.  

They know they have to make quick decisions on which house to buy if they are to exchange and complete by 31 March 2016.  Solicitors are going to be kept busy!  This is temporary good news in so much as this price bracket was the weaker sector last year.  Post 1 April may well be another matter…

It’s interesting to see that our current London buyers are clearly successful business people – for once they are not, in our experience, stockbrokers or bankers.  The volatility of international stock markets appears to be keeping ‘The City’ buyers well and truly in London for the time being.

As yet, the facts on the new SDLT aren’t set in stone, however. The Treasury is consulting on the SDLT changes until 1 February 2016 and everyone can have their say if they choose to hop onto the relevant HM Treasury website and relay their points of view.

But this is just one sector of the market.  Looking right across the price thresholds, we predict a confident year ahead for our region and this is an opinion shared with most property experts.  Forecasts for capital value growth through 2016 in East Anglia range from around 4 to 8 per cent.  Our Suffolk, Cambridge and Northampton offices are going to be busy…

Caroline Edwards
Partner
Residential Sales, Long Melford
T: 01787 888622
E: caroline.edwards@carterjonas.co.uk

Life’s an adventure – and it’s never too late!

One of the best things about an estate agent’s job has got to be all the wonderful houses we get to see throughout the year – in all shapes, sizes and locations.  Added to this, are all the different personalities we come across - I truly believe there is no such thing as an uninteresting person; if you engage with someone for long enough you will always discover something unique and fabulous about them.

Yet some people really stand out from the crowd - they capture your imagination and inspire you.

One such couple, whose house we have recently sold, made a special impression on me.  As estate agents, when we carry out an initial market appraisal, not only are we looking at what the property is worth and how best it should be marketed but we are also developing a bigger picture of our clients - this includes discovering their reasons for moving.

This particular couple had both just retired from prestigious careers and could easily have followed the more usual and very comfortable route of looking forward to grandchildren, spending time on the golf course and more regular holidays.  

But this was not for them.

Having spent so much time on their careers and bringing up their children, they, literally, had no plan whatsoever – or, indeed, perhaps the best plan ever – to sell up and go on a gap year!  Not having taken a gap year prior to their careers it’s the perfect time to catch up.  They can now discover where life is going to entice them.

The down-sizing move (or right-sizing as it is now called) following retirement is often the most difficult move anyone makes in a lifetime.

There is so much to consider, especially if moving from a much-loved family home to something smaller and more practical.

Many people have thoughts beyond retirement of life going downhill – a potential slow-down and living life, vicariously, through children and grandchildren.  But it doesn’t have to be so…

What excited me most about this amazing couple was that a slow-down was not on the agenda - the adventure was just beginning.  They were going to pack up their dogs and some luggage and hop in their car to France and see where life took them for the year ahead.

Without the constraints of responsibilities they can, gradually, take stock of their lives and allow the decision-making process to happen organically.  On a practical note their children are wholly supportive, plus a very small cottage has been purchased in a Suffolk village to ensure they don’t lose their foothold in the UK property market.

It is really refreshing to think that moving house doesn’t always have to dovetail between selling one house with the certainty of buying another perfect replacement. 

What a great idea to take a breather and to remember that there is no set path, just follow your heart.  And, most importantly, it is never too late.

Caroline Edwards
Partner
Residential Sales, Long Melford
T: 01787 888622
E: caroline.edwards@carterjonas.co.uk

The Autumn Market makes a welcome return

For the past 4 years we have seen a new pattern emerging in the residential sales market.

Whereas, traditionally, we used to rely on the Spring and Autumn markets being our busy selling periods, more recently January and February have become crucial to our trade. As lifestyles, demands on time and the means of contact change, the desire for immediacy gets ever stronger.  Decisions are made over Christmas family gatherings and once this desire to move becomes the focus, the house needs to be found - or sold - now! And, without a sense of urgency, desire loses its value.

Rather unnervingly, the Autumn market has been poor over the past few years.  However the mood has changed this year: August was strong and September is proving even better. The Autumn market is back!

Various events were contributing to the recent yearly cycles of strong first half, weak second half – last year it was Mark Carney’s early indication of interest rates rising.  They didn’t!  But it affected people’s thinking, nonetheless.

This Autumn, despite a very erratic stock market which could have unnerved sales, activity is strong.  We saw an over-confidence in pricing following the General Election in the Spring, but many guide prices of the time have been trimmed back and a sense of reality has returned.  We’re also comforted by a steady Government and continuing low interest rates. Lower Stamp Duty (SDLT) for anyone looking up to £925,000 is another confidence boosting factor.

Whilst those looking to buy at the top end of the market are saddled with higher SDLT, property now appears the safer haven than stocks and shares. And as oil prices continue on their downward trend, it’s unlikely the stock market will recover to any great degree soon.

As an example, just last week we agreed a sale in excess of £1,000,000 to a London buyer. Having recently sold his second home in London, he chose to re-invest in property instead of the stock market, having only visited Suffolk for a weekend.  Weighing up the choices of low interest rates on his cash funds, a volatile stock market and cyber fraud concerns, he chose a lovely Suffolk farmhouse instead. A safe choice indeed, I say!

Caroline Edwards
Partner
Residential Sales, Long Melford
T: 01787 888622
E: caroline.edwards@carterjonas.co.uk

Suffolk: Our village love affair

Some years ago the search requirements of London buyers were highly predictable: a Georgian rectory or impressive farmhouse with a long drive and about 10 acres, all within a 10 mile radius of a mainline station for the City. Seclusion and no neighbours were significant search criteria. But fashions are changing. These days we are just as likely to find London buyers specifically requesting houses in a village or on the edge-of.

Whilst many of us would be thrilled to own the ultimate trophy country house, we are seeing more buyers wishing to be part of a community and part of the action. When you’re used to the busy lifestyle and buzz of London, as well as having everthing at your fingertips in terms of restaurants, gyms, theatres and cinemas etc, it can be an unexpected shock to the system when a rural setting can lead to a sense of isolation and setting up an account with your local taxi firm.

The pretty and vibrant villages of Suffolk make ours a very special county indeed. When these villages also provide a shop/s, pub, restaurant and primary school we are reaching a recession-proof area of the market. Certainly village houses have been the strongest sector of our market for the past couple of years and the tide is not going to change.

In the price range of about £600,000 - £1,250,000 the demand is exceptional. The wide buyer spectrum is made up of families, professionals, London buyers and – most strongly – the retirement market looking to downsize and be within walking distance of amenities. We have had a number of examples in the recent past where good houses in popular villages, such as Nayland, have brought about competitive bidding owing to this diverse demand.

Whilst this is positive news for the vendors, it can be somewhat frustrating for the buyers. We often see scenarios where cash buyers can swoop in to purchase. This creates a dilemma for those wishing to downsize from their well-loved long-term country house to such a village. These buyers are often very reluctant to sell before they find a house to move to but, the reality is, the village house is the biggest love affair in the market. Just as a faint heart never won a fair maiden, fortune (or the best village house) favours the bold.

Caroline Edwards
Partner
Residential Sales, Long Melford
T: 01787 888622
E: caroline.edwards@carterjonas.co.uk

The 7 deadly sins & 7 heavenly virtues of buying and selling

In all parts of life there are things that can raise the blood pressure; likewise there are the lovely things which smooth the ride, put the spring in one’s step and, basically, bring out the best in everyone.

The seven deadly sins are listed as lust, gluttony, greed, sloth, wrath, envy and pride. And the seven contrary virtues are chastity, temperance, charity, diligence, patience, kindness and humility.

In estate agency, we see the good and the bad highlighted on an almost daily basis and we might adapt The Old Testament sins and virtues as follows:

THE SINS

The pursuit of perfection: The ideal house has never been built and never will be. Look at properties with an open mind, heart and soul. You can make it into your perfect home with a little bit of imagination.

Refusing advice: Agents help people buy and sell houses on a daily basis; good agents know their market and have a constant finger on the pulse. Just as you would listen to your doctor’s advice, it’s a good idea to listen to your property professional. However, we do acknowledge this is likely to conflict with some armchair and dinner party experts.

Disloyalty: Disloyal buyers are on a par with disloyal sellers. Some sellers think that by changing their agent a whole new crop of buyers will miraculously appear. That rarely happens. If a house isn’t selling, it’s probably the price. So don’t be seduced by the touts. If your agent doesn’t return calls, advise on the price or put in the hard work required however – it’s a good decision to move on.

Greed: Cheeky bids are as unhelpful as unrealistic expectations on price.

Untidiness: People love to buy a lifestyle – they like to see tidy lifestyles even though they might not lead one themselves!

Poor planning: Squeezing 10 viewings into one day and wholly relying on SatNav – maps may be old fashioned but they work in Suffolk!

Rudeness: Estate agents are humans too. We’re here to sell your house as best we can and to find you the loveliest house we can. We do our job because we like people and want the best for them. People can forget this.

THE VIRTUES

The virtues are simple and straightforward and, as obvious counterpoints to the sins, require no elaboration:

Trusting your agent; possessing an open and imaginative mind; realistic expectations; loyalty; patience; tidiness; appreciation.

And remember our business is minding other peoples’ – choose an agent with integrity. Buying and selling is as much to do with people as it is to do with houses.

Caroline Edwards
Partner
Residential Sales, Long Melford
T: 01787 888622
E: caroline.edwards@carterjonas.co.uk

Pulse & plus points of the early 2015 market

Once again, early year market activity has not disappointed. This is the fifth January in-a-row where the residential sales market has hit the ground running as soon as we returned to our desks.

To recap, 2014 was a year of two halves.The first six months saw strong activity right across price ranges – quite frankly, the starting gates flew open. But just as we were about to loosen the reins and push on into a full gallop, the Bank of England halted the momentum with its cautionary suggestion of an earlier increase in interest rates than predicted. Greater mortgage regulation helped slow the pace even more.

A long-term comfort to our market, however, is that Mark Carney so clearly adapts to market reactions. Latest predictions now expect the ‘new normal’ level for rates to sit at around 2-3% and, also, that the incremental increases may not start until Q4 2015 but, in all likelihood, in 2016. With low inflation, the crude oil price meltdown and weak wage growth, it looks like 0.5% may be banked upon for this present year.

The 2014 Autumn Statement announcement of stamp duty reforms was a surprise but it’s proving a good thing for the greater bulk of the market in that house purchases less than £937,500 will now face lower stamp duty charges. Above this threshold, the market is already beginning to absorb the changes and the higher cost of moving is now being consistently raised in our sales negotiations between purchasers and vendors.

The Christmas holidays are always an important decision-making time for both buyers and sellers. And, such is the pace of modern consumer demand, people seek immediacy as soon as the decision has been made to move. Hence we now advise vendors to launch to market as early as possible in the new year to, quite frankly, embrace and satisfy the “I want it now” mentality.

Marketing in the first three months of 2015 is more important than ever this year with the General Election bearing down on us on 7 May, as we anticipate a nervous pre-election lull in April. The mansion tax, or variations of it, favoured by both the Labour Party and Liberal Democrats is already having an unsettling impact on the prime markets both in and outside London. Should I put my money on it, I cannot visualise these pre-election manifesto proposals becoming post-election policies but who’s to say?...

So, the year has started with strong apres-Christmas pent-up demand, a renewed confidence in interest rates staying at 0.5% and continuing confidence in property as a non-volatile asset (unlike the recent performances of the stock market, currencies and commodities, not to mention oil). Average UK house prices are anticipated to rise by 3.5% in 2015 with ‘steady-as-she-goes’ growth over the next 5 years – some suggesting by 18%.

With the coalition government ‘consciously uncoupling’ itself into distinct blue and yellow rosette stances when it comes to views on housing market intervention, it is unlikely that the Spring Budget will see any significant policy initiatives which will have a direct impact on the housing market, such as Help to Buy or further SDLT reforms.

The only certainty about the General Election when it comes to the housing market is the date itself. So if you’re in the market for a move, we’re saying best make it now.

Caroline Edwards
Partner
Residential Sales, Long Melford
T: 01787 888622
E: caroline.edwards@carterjonas.co.uk

Catch me if you can

Last Friday I considered myself beyond privileged to meet the racing legend Frankel, my hero horse. It was a magical day made possible by the wonderful Jim Power who, not only was the Stud Groom for Banstead Manor Stud for many years but also, significantly, brought Frankel into the world. Frankel, the progeny of Galileo and Kind, was foaled at the stud on 11 Feburary 2008. In chocolate terms, my day with Jim Power and Frankel and, later, at the Newmarket Foal Sales was like winning the golden ticket for the Willy Wonka Factory. I was in horsey heaven.

I asked Jim when Frankel started to stand out amongst the crowd and he described him as "a lovely natured foal who owned the paddock”. He has described him as a “straightforward yet sensitive horse, with a slight air of arrogance about him - really top class racehorses often have that character.”

On Friday, Jim was quick to spot the high earners of the day as the fluffy foals were led around the paddock including top selling foal, son of Sea The Stars, purchased by Shadwell for 450,000 guineas.

Frankel raced 14 races and won all of them. Owned by Prince Khallid Abdullah, he is the first horse to be Champion at two, three and four-years old as well being crowned the Cartier Horse of the Year for two successive years in 2011 and 2012.

Frankel’s unquestionable supremacy translated into the exceptional prices achieved when his first two foals were sold: the first in June 2014 for £1.15m, whilst the second broke Irish records a week ago when it sold for 1.8m Euros (about £1.45million).

Yes, so much is down to the dam as well as the stallion, and Ireland’s success was much owing to the talent of the filly’s mother, Finsceal Beo (‘Living Legend’ in English) who won The 1,000 Guineas in 2007.

But what does this have to do with the residential sales market? Friday - my amazing day – was, surprisingly, a slow day for Frankel’s foals. The TV cameras were poised, the hype had been mounting, but out of his four foals due to be sold, the first was withdrawn following an over-excited jig in his stable and the following three did not meet their reserve prices, albeit one was subsequently sold to a privately increased bid.

I asked Jim Power what would happen to these adorable un-sold off-spring? How could they have not sold, despite their parentage and the amazing selling skills of three, non-stop-incentivising-supremely-knowledgeable auctioneers?

The talent was there, the genes were excellent, what more could one want? I truly felt for the owners and the auctioneers. It was no different to how I feel when I have launched an exceptional house to the market but I don’t find the buyer immediately, despite knowing the quality of what I am selling and promoting it with absolute gusto.

Jim’s answer was that the owners would probably wait until the Yearling Sales to re-present Frankel’s offspring to the market in order to achieve their deserved sum.

This is the property market too.

There are absolutely beautiful houses which have been brought to the market this autumn but have failed to sell. This isn’t down to their quality, however. Ask any estate agent (who really knows their salt) and the resolute answer to the question of “when is the best time to buy?” is: “NOW!”

We’re not saying this because we’re keen to get Christmas sales up, it’s because for a fourth year in a row we have not experienced the autumn market we were expecting.

We are in a new cycle. January and February are now key selling months.

January takes off at a gallop following the Christmas family ‘get-togethers’. Country Life, Rightmove & Zoopla report an annual peak of website hits in the latter part of Christmas Day. Decisions are made around the roast turkey and crackers and the newly-focused buyers want immediacy. They do not want to wait until the daffodils come out before a house is launched to the market.

This is why NOW is the right time to buy. Like Frankel’s unsold foals, look at what is out there now - don’t let the great and the brilliant pass you by - your ideal house may have already been withdrawn from the market only to be launched to the market in a few months time for a higher price. Call your agent now to discuss what is currently ‘hidden’ from the market. Vendors are more likely to consider genuine and unambitious offers this side of Christmas before the starting gates open in January. Unlike the retail market, you are likely to find your better purchase deal in the run up to Christmas - if you are waiting for the January sales you need not apply.

Finally, in estate agency, we often hear the expression “if it’s not meant to be, it’s not meant to be” – this expression frustrates me more than any other. If you want something don’t let it lie in the hand of fate - go for it. If you want a house - don’t hang about. Don’t be reserved in showing your agent your keenness to buy. It is your enthusiasm that gives us confidence in you and your genuineness which we, in turn, convey to our vendors. Enthusiasm also puts you at the top of our contact list for our ‘discreet’ properties which we are lining up for early 2015.

So, whilst I’m throwing fate out of the equation with my previous paragraph, I have noted something interesting: Frankel was born on 11 February 2008; his first foal was born on 11 January 2014 and our racing hero was trained by the legendary trainer, Henry Cecil, who was born on 11 January 1943.

Noticed anything? Apparently number 11 is considered to represent the Master Teacher which is believed to be an inspirational guiding light - someone who is highly charged, very powerful and leads the world.

Caroline Edwards
Partner
Residential Sales, Long Melford
T: 01787 888622
E: caroline.edwards@carterjonas.co.uk

Goodbye holiday, hello Autumn!

As much as we all love and need our holidays it is always a relief for estate agents when the second week of September arrives and our buyers are back home, refreshed and, generally, raring to go – giving us a good two months to make it all happen before Christmas.

This year, however, we will be even more delighted when the outcome of this week’s momentous Scottish Independence Referendum is finally revealed. No market likes uncertainty and it has been interesting to see the impact of Scotland’s potential break-away from the UK on the property market.

Whatever the outcome is, the fact we will have a result will help in a way that endless speculation hasn’t.

This has been specifically noticeable amongst London buyers. With many of our London buyers working in the City, the financial markets’ trepidation has rippled out into ours. This, therefore, has contributed to a slackening in demand for larger family houses in the £1,000,000 plus price bracket.

With any luck, Scotland will decide to stay in the fold and we can all raise a whisky or two to a revival of confidence.

On the other hand, a sector of the market which has shown tartan-resistant strength is the retirement bracket. The demand for good village houses within walking distance of amenities, together with spacious reception rooms, a reasonable sized garden and off road parking/garaging is especially strong.

As 2014 took off with the wind fully in its sails, we confidently expected the year to continue as such. Mark Carney’s warning of impending interest rate rises certainly contributed to deflating the London market ‘bubble’. However, frustratingly, this took the puff out of the country bubble which had only just started to inflate and was a long, long way off bursting.

However, the consensus is that when the base rate does rise, it will be in incremental stages. Such baby-steps will not only be easier for householders to plan-for and manage but are also unlikely to spook the financial and residential property markets.

Looking at this positively, a gentle pulling-in of the reins should ensure a more contained, steady and long lasting growth.

Caroline Edwards
Partner
Residential Sales, Long Melford
T: 01787 888622
E: caroline.edwards@carterjonas.co.uk

"I Heart Suffolk - that's my motto!"

Those of us born and bred in Suffolk have known about this county’s bewitching nature all our lives but the word is out. Recently described as a county “with apples in her cheeks”, our rural charm and undulating beauty now effortlessly blends with the sophisticate. London may be the cosmopolitan cocktail but Suffolk’s the cherry on top.

The attractions of Suffolk can easily be taken for granted by those who live and work here already but those new to the area will inevitably remark how colourful the houses are – an eclectic mix of charming painted cottages, elegant red brick and white brick Georgian houses and mansions, drunken timber framed houses in abundance, as well as pastel coloured beach huts.

We’re synonymous with pretty villages, rural hamlets, bustling market towns as well as the exceptional beauty of our unspoilt coastline and rugged, muddy rivers - bucolic scenes all perfectly captured by Constable and Gainsborough.

Suffolk was once a preferred destination for retirement – especially for those looking to move from the expensive Hertfordshire/Essex borders for a more peaceful way of life. Similarly, buyers migrated south from Scotland and Yorkshire to get that much closer to their family and friends in London. Quick research on the Internet will show we remain the most affordable county within that all-important 60 mile radius of London.

No motorway crosses our county yet we have excellent road and rail communication links to London and employment hot spots such as our hi-tech, high-powered, neighbour Cambridge. Added to which, Stansted Airport in Essex is a very accessible convenience whilst being far enough removed for noise pollution to be of no concern.

However, in the past five years, London has swivelled its searchlight north eastwards and hungrily shone its beam on Suffolk unveiling our hidden jewels.

We’re no longer the closely guarded secret we once were. Our high quality of life sees us top of the league in the UK’s longest life expectancy and, not only are we the driest county, we’re one of the sunniest in the UK too.

Niceties as these are, it is our top-rated schools and ease of commuting (under one hour to Liverpool Street) that seals the deal for our London buyers.

But we must definitely not forget Newmarket, the world famous home of British horseracing, which generates £208 million per annum and is also home to Frankel – universally known as the highest rated and most famous racehorse in the world. Since retiring from an unbeaten record of 14 wins out of 14 races and valued at £100 million, Frankel now stands as a stallion for Juddmonte Farms at Banstead Manor Stud commanding an impressive income of around £10-£12 million per year.

Maybe Frankel’s magic has rubbed off on the rest of us or maybe Suffolk’s new found celebrity put that extra heat into his heart and hooves as he raced to all his winning glories! Either way, a horse of such surprising and exceptional magnitude pretty much sums up Suffolk: stunning in all its discreet, yet unquestionable, splendour.

I heart Suffolk – that’s my motto!

Caroline Edwards
Partner
Residential Sales, Long Melford
T: 01787 888622
E: caroline.edwards@carterjonas.co.uk