Diary of an agent: Alice Huxley and James Denne

Alice Huxley (AH) is part of Knight Frank’s rural valuation and advisory team while James Denne (JD), office head for Melrose, covers both the Scottish Borders and Cumbria and Northumberland.

Pricing remains key to a successful sale; Brexit has provided buyers at the higher end of the market with pause for thought; Now is the time to prepare for next year’s spring market.

What are your thoughts as England goes into a second national lockdown?

AH - I think there is a general nervousness. Accessibility will remain key as there are serious limitations to desktop valuations. As a valuer I always want to see the property.

JD – The lockdowns, which it appears we’ll be able to continue trading through by following Covid-19 procedures, are another bump in the road. But life goes on and people will still need to up and downsize as well as relocate. We have plenty of properties under offer and, unlike last time, removals and other services will continue so house moving will too.

How did the first lockdown affect the market?

AH - Farms and estates tend to take longer to come to the market than purely residential sales as there’s so much due diligence required, so it took us longer to get going after the first lockdown. Having said that, I was just involved in a purchase where interest came so quickly it was sold before it was even marketed.

JD – It has been busy since re-opening and that doesn’t surprise me given everyone was locked up for so long. Everything due to be launched before the first lockdown ultimately sold. That’s not led to a lack of stock as such but certainly less of it.

What’s the nature of the work you’ve undertaken recently?

AH – Our work mainly comes through the banks and professional contacts such as solicitors, although sometimes we will receive an internal referral. A recent example was from our Winchester country house team referring an old contact wanting to take advantage of the low lending rates.

JD – I dealt with the sale of a celebrity’s house in Cumbria. It was one that I pitched for virtually back in April after watching a WhatsApp video. I think it shows how adaptable people truly are, but while virtual viewings work well in a city market such as Edinburgh for rural properties buyers still ultimately need to see the property to get a real sense of it before they’ll commit.

What’s the key factor to a successful sale?

AH - Things priced well just flew over the summer months but anything else sat there. Buyers are savvy and those in the higher price brackets have buying agents that are even more so. The challenge has been where a client has a fixed idea about the value of their estate. The reality is that generally values are probably where they were at the start of the year and the “Boris Bounce” period. If your estate or property ticks all the boxes for a buyer then they will pay a strong price, but this isn’t the case across the board.

What other drivers are there?

AH – I’ve had a couple of instances where people are coming to the end of their fixed-term mortgages. Land values were at their peak between 2014 and 2015, which has led to some difficult conversations involving purely agricultural valuations. What has helped soften this is where there is woodland, as values here have increased (as land values have fallen), so diverse portfolios have maintained their value.

Is Brexit a concern?

AH - There is a sentiment of caution around Brexit, as for working farms there will be a direct impact. Particularly with the likely changes to the reliefs available. However, The tailing off of the EU’s Basic Payment Scheme has already been priced in to land values.

JD - Brexit is a factor for those buying larger properties as we attract an international crowd and often these are second homes, so there are concerns around access. However, anyone that wants to live in Scotland will do so regardless of the politics and tax situation, as property here offers value for money compared to elsewhere.

What advice would you give those looking to sell?

JD – We’re not as seasonal in this digital age as we once were, but with the winter approaching there will be people on both sides of the border likely to hold back launching their property until the spring. My advice is that the early bird really does catch the worm, and it is in your interest to have your photography sorted now before all the leaves are off the trees, so that you are ready to go.