BCM Journal, Isle of Wight Edition 2023

Market
Overview
Market Overview UK
Written by Thomas
Dawson AssocRICS,
Associate, BCM Isle
of Wight.
The intense conditions of 2021/2022
have cooled slightly as we move into
2023 which has led to a less frenetic
market with more measured attitudes
from both vendors and purchasers.
The mortgage market has recovered
well from the interest rate ripple of
2022 and sentiment is positive on the
back of a strongly recovering UK
economy. Quality property continues
to sell quickly and the ‘move from the
city’ trend still remains a feature. Supply
remains relatively low by historical
standards which has helped values.
Land and farms are selling particularly
well as investors seek real assets in an
inflationary period.
Market Overview Isle of Wight
BCM’s Isle of Wight office saw a surge
in market activity in 2022 with very
strong demand from a range of buyers.
66% were relocating from the mainland
with a predominance of cash funded
purchases. While location remained key,
the shortage of available houses meant
buyers widened their search to include
the Island.
At the top end of the market the island
still represents good value for mainland
buyers and changing working patterns
with a recognition that the Island lifestyle
has strengthened this in the post-covid
era. Houses with land and/or incomeearning
potential – such as holiday lets
– remain popular. The island’s much
improved broadband services have also
helped buyers to commit.
Farms and land have seen a strengthening
market that continues to grow into 2023.
Financial turbulence in the UK’s equity
markets has pushed some towards this
‘safe haven’ asset and growing demand
from environmental investors for land
has tightened the market. BCM predicts
further strength into 2024. Development
sites of all scales continue to sell well
but those with well-considered planning
permissions and properly discharged
conditions find the best values.
Overall, BCM sees the Island market
‘returning to normal’ as we run into
2023 – there is plenty of strength in
the market for well-presented property
and no shortage of buyers for the right
package.
Market Overview Oxford
Written by Tom
Bishop
BSc (Hons) MRICS
FAAV,
Associate Partner,
BCM Oxford
Over the last 12 months we have seen
a continued theme of lack of supply
and strong demand for property, land
and investment opportunities within the
rural sector.
The prime estate and farms market
has seen a considerable boom reaching
prices similar to the peak in 2014. These
trophy assets have also been increasingly
snapped up by foreign investors who have
also benefited from volatile currency
markets and a weak pound.
With the usual benefits such as tax
incentives still applying to agricultural
assets, combined with new opportunities,
such as ecosystem services and natural
capital solutions, we continue to see
interest from new and existing investors.
The drop in agricultural subsidies
and the lack of clarity of the new
Environmental Land Management
scheme does not seem to deter buyers.
However, the rise in interest rates and
cost of borrowing has perhaps curved
the expansion of many farmers wishing
to purchase neighbouring blocks of
land. Notwithstanding, there are still
considerable cash buyers within the
market.
Looking forward and beyond 2023, we
may see more smaller, less economically
viable holdings come to the market once
the full drop in subsidies is seen and
perhaps there is continued pressure and
inflation on inputs, one of just many
external factors. With this in mind, we
look forward to continuing in this strong
market, but must be conscious of pricing
land and property correctly which is
becoming increasingly location and
character specific.
Written by Tom
Woods ARLA, Head
of Sales and Lettings,
BCM Winchester
Market Overview Hampshire
We aim to give you a brief snapshot of
how the Country House sales market has
performed over the past 12 months and
an insight into some of our successes this
year.
At BCM we are in a unique position of
being a multi-disciplined, independent
rural property consultancy and with our
network of three offices in Hampshire,
the Isle of Wight and Oxfordshire we
can cater for most of your property
needs.
If you are thinking of selling your
country home this year and would like
to know what your property is worth,
or any other advice we can assist with,
please do speak to us.
As we begin 2023 and reflect on the
previous year, I think it is fair to say on
balance 2022 was another exceptional
year for the country and village house
market in Hampshire. What was
interesting last year is the buying trends
and how they seemed to change, going
from ‘escape to the country’ of 2020-
2021, to the more traditional reasons
such as access to London, good schools
and good lifestyle; all of which have
always underpinned the Hampshire
market.
What was more noticeable in 2022 was
the number of buyers willing to cast the
net further and wider for the right house,
with the ever-increasing popularity of
flexible working practices, more and
more buyers swapped the need for a
commutable station nearby to having
a more rural setting (only if there was
good broadband of course!)
Supply across all of the price brackets
continued to be a challenge throughout
the year. It is rare for the market to suffer
with an oversupply of housing stock, but
at certain points last year it really did
feel as though there was nothing on the
market, a view certainly shared by many
buyers. Whilst this was clearly a benefit
to sellers, the challenge for homeowners
was not finding a buyer, it was finding
somewhere to move on to. This really
tested their resolve but those buyers
who were patient and considerate were
eventually rewarded.
What was well documented last year
Photo: Visit Isle of Wight
was just how long the sales process is
now taking, with the average sale now
taking up to 4 months from instruction
to completion. It is no wonder we suffer
with so many aborted sales and wasted
costs in this country and it really should
be addressed.
The answer is to make sure that you
employ a good solicitor and equally that
the other party does the same. We have
often advised clients of the virtues of a
‘data room’ which really helps to speed
the process and is especially useful for
more complicated sales. There is a cost
element to this and hence it won’t work
for some, but what I learnt from this is
that by getting as much information
together as you can up front, it saves a
huge amount of time once a sale has
been agreed. And this is something that
everyone could do.
Looking ahead, of course, the cost of
living crises at the end of last year and
the increasing mortgage costs took the
wind out of the sails somewhat, and what
the next 12 months will bring is difficult
to predict. I suspect it will be more of
a challenge, and that the price growth
we have seen in the past three years will
slow up. But I also hold the view that the
best in class houses, which are sensibly
priced and well presented to the market
will always be in demand.
10 BCM Journal BCM Journal 11