High-End Property in 2009

In an economic downturn it is easy to assume the housing market will suffer across the board, across the country. However, despite the doom-laden predictions, the picture is more mixed when it comes to the more expensive properties on sale, especially on a local level.

In 2009 this is expected to be the case in the south east, with many top professionals currently residing in Central London moving to large yet well-priced luxury homes in the Surrey suburbs. The financial slowdown will also fail to deter members of the international business community, such as those in the booming energy industries, as many will be cash purchasers not requiring finance.

That is the message from Virginia Water based estate agency, Barton Wyatt, which, as an established family business in the Surrey area for decades, has experience in both the boom times and the downturns. The company, named the Best Estate Agency in Surrey in the last three Daily Mail Property Awards, feels the higher-end local market will buck some of the trend, largely thanks to the type of people likely to move into this prime commuter belt at times like these.

Affluent suburbs such as Virginia Water, Cobham and Weybridge can still expect new residents in the area's top end residential properties, priced around £2 million or more. Compared to Central London costs, housing per square foot can be up to 90% cheaper; in addition, house prices in the capital have declined less than the rest of England on average. These reasons, together with the increased garden and living space on offer, will encourage many top professionals to consider the benefits of a Home Counties move. With City professions feeling comparative restraints not seen for years, the financial and lifestyle arguments in favour of a move will continue to reassert themselves during 2009.

Although many potential buyers in the UK are hesitant to commit to a purchase, those from the international business class will continue to consider expensive property purchases. Those who derive their wealth from essential commodities like oil, gas and minerals are expected to remain interested irrespective of the directions in house prices domestically. As seen with the sale of luxury cars, Russian and Middle Eastern petro-dollar buyers are still prepared to make certain purchases. Such business helps to slow price falls in the top Surrey suburbs, with Virginia Water retaining the highest average house prices in the country bar London according to national press surveys.

As the number of property purchases nationally declines with buyers increasingly waiting and seeing how the market will fair, it is no surprise that rental markets have held in the large part. When it comes to the commuter belt properties of Virginia Water, although some effects of the credit crunch may start to be felt, lettings from those in the corporate world are predicted to hold up.

James Wyatt, Senior Partner of Barton Wyatt comments:

"Although property acquisition at the lower end is expected to suffer from falls in confidence and lower lending, the higher end market will at least retain some buoyancy. With traditionally high prices, the Virginia Water area has proved itself to be the ideal place for corporate and international businessmen, and it is unlikely their spending habits will be altered completely as a result of the economic downturn. Although many effects of the current climate will be noticeable during 2009 I don't think there will be a complete collapse in the housing market as many predict."

For more information, visit www.bartonwyatt.co.uk

Information courtesy of AB Property Marketing Ltd., and Barton Wyatt | Last updated: 6th January 2009

View property news archive »