The most common question I am asked by both buyers and sellers is “what are you achieving per square foot”? Such a broad question can only be answered with a fairly arbitrary, but honest answer – in and around Kensington & Chelsea properties are achieving between £700 and £2,000 per square foot, although in some extraordinary cases properties can achieve as much as £4,000 per square foot.  I’m not entirely sure such a flimsy response provides a useful insight into the concept of determining value according to space, to do this we must delve a little deeper.

We often encounter resistance from buyers, particularly European and international buyers, who analyse the asking price of the property according to the square footage. When we start to cross-examine the reliability of their information there are often key considerations which have been conveniently ‘overlooked’. First and foremost, the condition of the property must be taken into consideration, has the property been recently refurbished? If so, one should expect to pay a premium.

In the case of flats and apartments the floor level is a major contributing factor to the value; flats on first floors of period conversions almost always fetch a premium because of ceiling height, grandeur and period features. For this reason I have speculated for some years that a more accurate measure would be to calculate cubic feet rather than square feet, perhaps in time this will become common practice?

Then we must assess what areas are incorporated into the square footage, sometimes storage areas and mezzanines are included, should these be considered to be as valuable as primary living space? Other major factors such as how highly regarded the street is and the quality (and aspect) of the property’s positioning should all be taken into account. Perhaps the most surprising factor that is generally overlooked is outside space. How do you value a garden, roof terrace or balcony – we know that for many buyers these are ‘must-have’ requirements.

Finally, in my view, it is the design and layout of the space that is most crucial. In my experience 800 square feet of well configured space can provide a much better living experience than 950 square feet of badly configured space. For those of us who have been around long enough to recall selling a property before the advent of floorplans it was a simple calculation that buyers had to make … Is the property big enough? Can I live there? Will my furniture fit? Perhaps the modern-day buyer might find using these tried and tested questions a helpful sanity check.
Posted: 10 January 2012

We have been extraordinarily busy in the last few weeks with several properties attracting competitive bids and exchanging above their asking prices, more often than not selling to cash buyers. We have no crystal ball but the mess in the Eurozone and the uncertainty in other markets would appear to be playing out well for the prime London property as well-heeled international buyers continue to align their wealth in tangible assets. The price of gold continues to rise and so does the price of central London property, in times of uncertainty bricks and mortar provide security and stability.

On the lettings side companies appear to be less keen to throw their money around and the demand for high-end rental properties and family houses has fallen as fewer senior management people are being relocated into London. As ever there is buoyancy in the market for one and two bedroom flats to rent.
Posted: 24 October 2011

Typical properties
We don’t believe in pigeon holing our business so we don’t have a ‘typical’ property. We are capable and competent in selling or letting one bedroom apartments or large family houses. We tend to attract interesting (often creative) clients who want to work with a switched-on independent agency rather than dealing with the big High Street chains.

Where did it all start?
We opened our first office on Notting Hill Gate in 1999 and subsequently opened in Stratford Road, Kensington in 2006. We hope to open a third office by the end of the year.

Your most interesting property sold/let?
An amazing house in Newton Road (just off Westbourne Grove) which was a treasure trove of salvage yard idiosyncrasies and antiques, they also had four bee hives on the roof! Our clients were fabulous and so much fun to deal with.

Favourite place in the office area?
I love the vibrancy and honesty of Golborne Road, it’s like Portobello used to feel before the tourists took over. I also adore Stratford Village in Kensington, everyone knows everyone else, there’s a real sense of community in the city.

Market comment
International wealth has driven the property market in prime Central London for the last few years, the acute lack of supply has further underpinned the market and resulted in record prices being achieved. The next few months will be quite telling, as we come out of the quieter summer market we will know fairly quickly what impact, if any, the most recent global financial crisis has had on the market here. The one thing we can predict with confidence is that Central London will remain the sweetheart of global property, both in terms of investment and as a place to live.

Quick fire round

Last book you read – The End of Mr. Y by Scarlett Thomas – weird but wonderful!

Favourite holiday destination – Can I choose three? India, Greece, Lake District.

Favourite Movie – I’m a big fan of most of Cohen Brothers films.

Famous person you admire – Ranulph Fiennes, he appeals to my ‘inner-adventurer’.
Posted: 26 August 2011

This growth in the “grey-market” raises some interesting questions with respect to the way that buyers rely upon up-to-date information; the kind of information which is clearly not available if a sale is handled off-market.

We have seen an unprecedented increase in the number of off-market sales – handling several transactions with values ranging from £500k to £6million just the last year alone. So, in the context of the Central London property market this process is by no means limited to an elite few. High-profile buyers and sellers use off-market deals specifically to avoid the type of public scrutiny given to more orthodox property transactions. But is the ability to avoid the usual ‘bidding war’ just something enjoyed by the well-heeled and those in the know, or are off-market transactions worthy of wider attention?

So where does a buyer begin their quest for off-market property deal? The savvy buyer will tap into the networks of local key estate agents and make their requirements known, when your network is well-oiled, the grapevine will reveal that a certain property might be available at the right price. This sort of networked negotiation is as much about establishing insight and intimacy as it is about sheer financial acumen.

Personally, I am surprised that off-market transactions don’t occur more frequently. It’s more of a cultural consideration that drives sellers to the open-market, they expect this forum to deliver greater exposure, which it does, but exposure is not always a valuable commodity when selling a prime asset.

For the uninitiated there are some simple tips. As a buyer, never make an offer until you have ascertained the ‘real’ value of the property you want to buy and what, if any, premium you are prepared to pay to secure it. There will certainly be a premium.

As a seller you’ll need to choose a local agent with the necessary creativity and guile to get the desired result.

If you would like to discuss current and future opportunities to buy or sell ‘off-market’ then please contact me at your convenience.

Michael Wilson, Director
020 7243 7888
michael@mountgrangeheritage.co.uk
Posted: 4 May 2011

April saw a rather inevitable slow down as the market caught its breath after this unprecedented stampede and there was the double whammy of back-to-back long bank holiday weekends providing ample distraction.

But now spring is in its stride and with it comes new shoots of optimism. The application for Olympic tickets has closed and the reality of hosting the games in 2012 is beginning to feel very real. Our villages may be a few miles from the Olympic one but there is no doubt that the international attention and ‘feel good factor’ that ‘2012’ is bringing to London will further cement the appeal and attraction of our extraordinary city and the property market to boot.
Posted: 19 March 2011

So what should we expect in 2011? Our sense is that it will be a stable year, perhaps a little less remarkable than those before it. But who knows what surprises our coalition government will pull out of the hat as the year unfolds? We already know that Stamp Duty will increase in April from 4% to 5% on sales over one million pounds; but we don’t anticipate this having a significant impact on transaction levels. What we do expect is that interest rates will remain at their record low for a little while yet which can only be good for buyers. The one thing we can predict with confidence is that Central London will remain the sweetheart of global property, both in terms of investment and as a place to live, so we look forward to another challenging but successful year helping anyone who wishes to get moving!
Posted: 4 January 2011

However, 2011 will bring an increase in transaction costs to the property market, with VAT increasing to 20% and Stamp Duty increasing to 5% for sales over one million pounds. The shift in Stamp Duty could spark a flurry of transactions before the change comes in to effect; so if you own a property with a value between one and three million this could be an excellent time to sell.

In spite of economic considerations the love affair with central London residential property is as strong as ever. The strength-in-depth we experience is primarily delivered by buyers from every corner of the globe and all walks of life. We are just as comfortable working with bankers or artists as we are with nationals or internationals – after all, it’s this tapestry of people which makes our Village such a special place to reside.
Posted: 4 October 2010

The long overdue abolition of the Home Information Pack has already encourage more sellers to the market and will allow those seeking to ‘test’ the market the opportunity to do so without investing £300 to £400 in a document which ultimately failed to add value to the house buying process.

So what lies in store for the second half of 2010? We’ve achieved some outstanding sales and lettings our clients so far this year, especially at the top end of the market with international buyers continuing to take advantage of the weak pound. Prime property has, on the most part, recovered to the peak levels of the autumn 2007 and prices seem set to hold firm
Posted: 1 August 2010

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