Cotswold Life - Property News (Richard Evans)

So, what is the difference between an estate agent and a buying agent?

We are all well versed as to the role of the estate agent and, love them or hate them, most of us will, at some stage in our lives, find ourselves using their services. But, increasingly prospective purchasers of property are turning to a relatively new breed of agent, the buying or search agent, to help them acquire the home of their dreams.

So what exactly is the difference between an estate agent and a buying agent? The estate agent's entire focus is on getting a sale at the best price possible for the vendor or seller of the property. The buying agent acts solely for the prospective purchaser not only to find the right property for them but also to assist in negotiating the most favourable price for their property purchase.

Buying agents in the country established themselves some 20 years ago. At the time, even the property industry itself was sceptical and few thought they would be around for very long. The buying agents proved this sceptism wrong and continued to thrive. Today nearly all the large estate agents boast a buying arm and there are a number of other regional specialist firms. One such buying agent is Private Property Search (PPS), which is the buying arm of national agents Strutt & Parker.

David Milligan is a Patner at PPS and specialises in finding properties within the triangle of the M5, M4 and M40 corridors, which includes the Cotswolds, for his clients. "There is a misconception that estate agents and buying agents are in competition with one another. This is just not true. In fact PPS has excellent relationships with estate agency firms across the board so that we can be absolutely sure we have gathered the very best selection of available properties at any given time to put to our clients."

"And, estate agents themselves prefer dealing with buying agents as they know that they are representing serious and genuine purchasers" adds Milligan.

As well as saving hours of fruitless web-browsing, visits to estate agency offices, and disappointing viewings, a buying agent provides another important benefit - knowledge of the 'grey market'. Many vendors prefer their properties to be sold quietly with no overt marketing materials. In these circumstances the estate agent will contact selected clients and buying agents. These buying agents may well be acting for a client who would not have been aware about a grey market property other than through their buying agent. Using a buying agent gains access to this very important pool of properties.

"Most of our clients rely on us not only to search and acquire their ideal property but to advise on the many other aspects related to the purchase", says Milligan.

"For example, I have an in-depth knowledge of the planning process and the development of large country houses having been involved in the construction of a number of individual properties in a previous career. Many of our clients find this aspect extremely useful, particularly if they are looking to build a new house, need planning advice or are looking to extend or renovate an existing country property.

"Others in the team have extensive farming and financial backgrounds thereby providing a wider expertise to our clients".

"The purchase of property is one of the biggest investments an individual can undertake. Why wouldn't you want to seek the best advice to ensure you get the right property at the right price with the very best of professional support?" he concludes.

Country Life (Anna Tyzack)

Outbuildings across the country and being turned into gyms, art studios and home cinemas. Anna Tyzack discovers what's worth the cost.

For country-house buyers, outbuildings with the potential for conversion are increasingly becoming an essential requirement. 'Barns are never just barns any more - they're a deal clincher,' says Adrian Wright of Strutt & Parker's Private Property Search (07774 254749). 'People's lifestyles have progressed with technology; they work from home and require offices, gyms, and large entertainment spaces that simply can't be squeezed into the floor plan of an average house.' He's encountered barns housing shooting ranges, classic-car collections and, most recently, a wine cellar masquerading as a vehicle-inspection pit. 'It was only when I climbed into the pit that I discovered a door into an enormous temperature-controlled room.'

Conversions usually fall into one of four categories; sporting (gyms, swimming pools, games rooms and equestrian facilities); income streams (offices, light industrial spaces, studios, storage and wedding venues); lifestyle (home cinemas, play rooms, party rooms, wine cellars, machinery or classic-car stores) and accommodation (family, staff, guest, holiday or long term rentals).

Not all are worth the effort: although planning laws have been relaxed for converting unlisted barns within close proximity to the main house, development can still be a long and arduous process. 'If buildings are in poor condition, or listed, it can cost a fortune,' explains Hugh Petter of Adam architects (01962 843843). 'I often find myself scratching my head to find a revenue stream to justify the huge expense of restoration.'

If you have an unlisted building in good condition, however, there are plenty of ways to make it pay for itself. Accommodation is by far the most lucrative, according to Rob Jones-Davies of buying agents Middleton Advisors (01235 436272). 'Not only can you rent the property out, but when you come to sell, the additional properties will be far more valuable than, say, stables or even offices.'

But holiday lets and long-term rentals aren't for everyone - including the local planning authorities in many rural areas. Owners lucky enough to be granted permission to create accommodation within outbuildings may be required to sign a Section 106 legal agreement preventing their conversion from being rented commercially or sold as a separate dwelling.

Moreover, adds Martin Lamb of Savills in Exeter (01392 455740), you have to plan for a future resale: some buyers are put off by the prospect of too many holiday cottages. 'Most people want just one or perhaps two cottages for staff, relatives or guests,' he says.

To cater to the various whims of potential buyers, home owners and property developers are increasingly hedging their bets and creating 'reversible' conversions. With minimum upheaval, for example, what is currently the 'party room' at the Old Rectory in Biddestone, Wiltshire (£2.5million through Knight Frank, 01225 325994), can become an indoor pool - key plant equipment and infrastructure elements are concealed beneath a sprung floor.

By far the most practical and cost-effective rooms, however, are those with multiple uses: a games room that is also a cinema, say, or a combined play room and party room, which can be rented out for shoot lunches. 'Party barns that double up as play rooms are a particularly safe bet,' says Mr Jones-Davies. 'Parents appreciate having space for their children, and enjoy using the areas themselves for entertaining.'

But amid the current fervour for home cinemas and media rooms, are we in danger of forgetting the simple beauty of an untouched building? A medieval barn with a mud floor and cob walls in Sowton Barton in Devon, owned by Paul and Linda Kingdon, has been the venue for many memorable family parties - despite the fact that it's unheated. 'It's Grade II* listed, so we're not allowed to do anything except prevent it from falling down and rethatch it,' Mrs Kingdon says. But it's untouched state gives it a unique atmosphere.'

By Penny Churchill

Traditionally, the second quarter of the year is always the busiest for farmland sales, with vendors keen to market land and farms when they're looking their best, with a view to completing a sale before the start of the next cropping year. For all its problems, 2011 has been no exception.

Back in April, Giles Wordsworth, head of national farms and agency at Smiths Gore (01865 733300), was 'spot on' when he prophesised that the sale of the scenic, 702-acre Manor Farm at West Overton, near Marlborough, in the North Wessex Downs AONB, would set the benchmark for farmland values in Wiltshire for the year. Following its launch in Country Life, 'unprecedented interest' from prospective purchasers resulted in Manor Farm going under offer within two weeks, and selling for 20% more than its £6.2 million guide price.

Market intelligence suggests that Mr Wordsworth can repeat the process with next week's launch of Manor Farm at Chirton, near Pewsey, Wiltshire, at a guide price of £4.625m. The picturesque, 470-acre farm, mainly arable with some pasture, stands against a backdrop of one of the Pewsey Vale's famous White Horses.

It comes with a pretty, Grade II-listed, four-bedroom farmhouse on the edge of the village and a range of traditional farm buildings that could be converted to equestrian or even residential use, subject to planning consent. The land is of excellent quality, being half grade 1 Pewsey greensand-a soil renowned for its moisture-retaining properties the other half being mainly grade 3.

In a farmland market that has seen supply dwindle in the past three decades-from an average of 328,000 acres sold each year in the 1980s, to 246,000 a year in the 1990s, and 143,000 a year in the 2000s-Charlie Wells of buying agents Prime Purchase reports sustained demand 'from investment-motivated buyers, particularly where a farm presents a good combination of crop-yield potential within an attractive setting, as well as some wildlife and amenity value. Buyers are often prepared to pay a premium for productive land set in appealing countryside: the "green and pleasant land" image is what the majority look for'.

Land doesn't come much greener or more pleasant than the 102 wooded acres of idyllic Week Farm (pictured) at Combe Hay, near Bath, Somerset, which launches in this week's Country Life at a guide price of £4.75m through Knight Frank (01225 325999). Week Farm sits in a dreamy small valley overlooking the enchanting stone village of Combe Hay, within the Cotswolds AONB, yet is only three miles-or 10 minutes' drive -from Bath city centre. Charles II is rumoured to have found refuge here for a week in 1651 while on the run from Cromwell.

The present owners, whose family bought the farm in 1964, are now returning to their native Yorkshire. They have transformed Week Farm into a mini-sporting estate, completely rebuilding the house, which had been derelict for more than 30 years. It now has four reception rooms, a kitchen/breakfast room, master and guest suites, four further bedrooms and a family bathroom, its centrepiece a splendid cantilevered stone staircase leading up to the second floor. Outbuildings include two cottages, an original stone barn, an office suite and two large barns with B2 business use.

The land is let on a Farm Business Tenancy to a local farmer until 2012, and the shooting rights until February 2012, with the owner of Week Farm taking one or two 'family days' in lieu of rent.

London buyers are always a force in the market for easily run residential farms within commuting distance of the City. Tim Page-Ratcliff of Strutt & Parker in Lewes (01273 475411) recently arranged the sale of picturesque Eatons Farm at Ashurst, near Steyning, West Sussex, at a guide price of £4.8m, within a week of its launch in Country Life.

With its recently renovated, Grade II-listed, five-bedroom Sussex farmhouse, landscaped gardens with a swimming pool and tennis court, traditional and modern farm buildings, stabling with access to the South Downs, and 183 acres of rolling farmland with frontage to the River Adur, Eatons Farm is the perfect retreat for a London family wishing to indulge in a spot of hobby farming.

But according to Ian Hep-burn, head of Hampshire-based Private Property Search (01256 242938), the independent buying arm of Strutt & Parker, there is a growing trend for London buyers to take a more active role in farming any land they buy, for the tax advantages this brings. In effect, this means hiring a local contractor to farm the land on their behalf, rather than letting it to a tenant. This year alone, Mr Hepburn has purchased no fewer than five farms of 150 acres or more-mainly in Hampshire and the Cots-wolds-on behalf of City investors who wished to build a new house on site and contract-farm the land, while continuing to run their London operations.

For one southern family, the purchase of a Yorkshire grouse moor some 20 years ago was followed soon after by that of a charming small sporting estate in the glorious Howardian Hills AONB between Malton and York. That was secluded Potter Hill near Coulton, 12 miles from Malton, which sits tucked away in its own private valley, surrounded by 152 acres of formal gardens, well-fenced grass paddocks, lakes and woodland. Now, the owners are heading back south, and Potter Hill is for sale through Rounthwaite & Woodhead in Malton (01653 600747) and Savills in London (020-7499 8644) at £2.85m.

At the heart of the estate stands the main house, a striking building redesigned in the 1930s with three main reception rooms, a kitchen/breakfast room, a large conservatory and garden room, a billiards room, an indoor swimming pool, a gun room, five main bedrooms, four bathrooms and a four-bedroom guest wing. Amenities include a tennis court, stabling, lakes and a family shoot.

Generally speaking, however, agriculture is a serious business, and across the Cheshire border in scenic north-east Wales, former CLA president Mark Hudson is retiring from farming and selling the 271-acre Rhyd-y-Cilgwyn estate near Ruthin, in the Vale of Clwyd, which has been in his wife's family for 65 years. The estate was bought soon after the war by his wife's uncle and established as a thriving dairy farm, first with dairy shorthorns and later, when he was already 80 years old, with British Friesians. Mr Hudson, an agricultural consultant, and his wife, Sue, came over to help with the running of the farm in 1973, and took it over altogether some six years later. It has been fully organic since 2002.

Strutt & Parker (020-7629 7282) quote a guide price of £3.75m for Rhyd-y-Cilgwyn, which is being sold as a whole or in up to 13 lots, with the house, gardens, modern and traditional farm buildings and some pasture-31.7 acres in all-on offer at £1.2 million. The main estate house, listed Grade II, was completely refurbished following a fire in 2000, and has four reception rooms, a kitchen/breakfast room, eight bedrooms and six bathrooms, on three floors. It overlooks lawns and the River Clywedog, the banks of which are lined with mature trees, snowdrops and daffodils.

The dairy business is currently run as a contract farming venture and includes an exceptional range of farm buildings built 13 years ago, in addition to a range of brick former dairy buildings and storage sheds. The estate includes 179 acres of arable land (with 139 acres currently down to ley grass) and some 78 acres of woodland, with 'some nice dips into the valley' offering scope for a challenging family shoot. Included in the sale is a terrace of four cottages and 1.25 miles of fishing on the Clywedog.

Finally, where else but in Scotland would £2m buy you a productive, 408-acre, arable and mixed farm with a modernised four-bedroom traditional farmhouse, two good cottages and a first-class pheasant and partridge shoot with duck-flighting and roe stalking? The Brechin office of Savills (01356 628600) is handling the sale of Greenmyre, near Kingoldrum, at the foot of Glen Isla, six miles west of Kirriemuir, Angus, where both the farming and sporting sides have been run as part of a bigger operation by sporting icon Paddy Fetherston-Godley of Avon & Airlie Sporting Ltd. The farm, which won Mr Fetherston-Godley and his team a Purdey Award for Game and Conservation in 2008, has been run with shooting very much in mind, with woods and game crops providing testing pheasant and partridge drives.

Two cottages have been renovated and used for holiday lets, at rents of up to £385 a week, mainly tied in with the sporting lets. Planning consent, now expired, was granted in 2000 to convert part of the farm steading to further holiday accommodation.

Related links:

Private Property Search - your property buying agent in Wiltshire

Private Property Search - your property buying agent in Somerset

Private Property Search - your property buying agent in Hampshire

Private Property Search - your property buying agent in West Sussex

By Tanya Powley

Wealthy homebuyers are increasingly opting to build their own dream homes, as good quality family houses remain scarce at the top end of the property market.

In recent months, buying agents have reported a rise in the number of clients looking to buy plots of land with planning permission for large family houses.

Adrian Wright of Private Property Search (PPS) says his company has recently acquired four sites in Hampshire and Dorset on behalf of clients, at prices varying from £1m to £5m.

This trend towards self-build has been reflected in stronger demand for self-build mortgages since the beginning of the year.

According to Buildstore, a company that sources building plots and self-build loans, there was a 30 per cent increase in the number of self-build mortgage offers in the first quarter of 2011, compared with the same period last year.

Government policy is expected to drive further growth in coming years. Earlier this month, Grant Shapps, the housing minister, announced that he wanted self-build to become a mainstream housing option - and said the government would look to make more publicly-owned land available for use by "ordinary people to build their own homes".

The appeal of self-build has also been boosted by the prospect of paying no VAT - at 20 per cent - on building materials, as well as savings on stamp duty.

"The self-build market is thriving as wealthy buyers in particular buy fairly average or dated houses in great locations, knock them down, and build much swankier properties to their specifications," says Melanie Bien of Private Finance, the mortgage broker.

Bien says Private Finance recently arranged funding of up to £17m on a single plot in Mayfair, on which a block of four flats was knocked down to create a single house.

Self-build is particularly popular with wealthy buyers looking to build family homes in the country. PPS says it has bought a 150 acre plot in Hampshire with planning permission for a 15,000 sq ft country house - including an indoor swimming pool, stables and outbuildings - for less than the guide price of £5m. It has also secured a 55 acre plot with planning permission for a 10,000 sq ft house, plus 6,000 sq ft of ancillary buildings, for just over £2m.

But, while building a home to exact personal specifications will appeal to many, experts warn that the process is often costly and time-consuming.

Simon Barnes, a London-based buying agent, says it is crucial to employ professionals. "You really need to know what you are doing and have a good team in place," he explains.

Jaclyn Thorburn of Buildstore advises self-builders to set a realistic budget - including a contingency of at least 15 per cent.

Build costs at the top end of the market can vary significantly. Wright of PPS says that, generally, top-end buyers would look to spend between £160 and £250 per sq ft depending on specification, but some can go over £300 per sq ft.

Securing finance for self-build is also harder than it used to be. "Self-build has been decimated as a result of the credit crisis and lenders that would once have been worth a call will no longer look at self-build," says David Hollingworth of broker London & Country.

On the high street, BM Solutions and Halifax offer self-build mortgages, but the majority of other self-build lenders are building societies. This week, Norwich & Peterborough eased its lending criteria for self-build mortgages, increasing the maximum loan-to-value from 75 to 80 per cent.

Self-build loans are more expensive than traditional mortgages. N&P charges 5.3 per cent, with a £995 fee. However, self-builders seeking larger loans could try a private bank. According to Aaron Strutt of broker Trinity Financial, Bank of Scotland Private Bank can offer rates as low as 3 per cent over bank base rate.

Citywealth - Edition 129 (Karen Jones)

Q&A with Ian Hepburn, Head of Private Property Search, Strutt & Parker's buying arm

How are our clients investing in agriculture?

In my experience, investors buying farmland, farms and estates in the UK fall mainly into 2 categories:

Individuals - these are successful businessmen either from the City or those who have sold their own businesses who are looking to invest in farmland for a variety of reasons but mainly to protect their wealth (they see land as a safe haven, particularly UK farmland), a place to live (they are much more interested in buying farms and estates rather than bare land), Capital Gains Tax and Inheritance Tax advantages (particularly with in-hand farmland), amenity and sporting potential and, finally, income generation and capital appreciation.

Hedge Funds - contrary to a lot of commentator's beliefs, very few hedge funds have invested directly into UK farmland. Some funds have been set up to enable investors to purchase farmland as part of a consortium, others have been set up to invest in UK farmland in other countries such as Brazil, Argentina, Eastern Europe indirectly through farming/land owning companies.

One of the major funds which has been involved in the direct purchase of UK farmland over the last three to four years has been BlackRock through its Agriculture Fund. We acted for this fund buying farms. There are very few other funds, if any, which have purchased farmland and subsequently managed the land on behalf of its investors. BlackRock's investment criteria was to buy commercial arable farms in the East of England with as little residential value as possible.

What can go wrong?

The UK land market has seen a meteoric rise in the last five years and as with any other market, values can go down as well as up. Both individual investors and hedge funds are more alive to this fact than any other kind of investor but they must also appreciate that property is much more illiquid than equities or bonds. The commodity market for grains and oilseeds has a direct influence on farming profitability and so too with input costs where the oil price will have a direct bearing on fertiliser and fuel costs.

Have you seen agri-funds popping up?

As mentioned, the major agricultural land fund which has emerged over the last four years is BlackRock Agricultural Fund which was set up not only to invest directly into UK farmland as part of its overall portfolio along with equities in agri-businesses and commodities but also to manage those farms purchased in hand. Other funds have been set up in a different way where they are investing in UK land on behalf of a consortium of investors but, to my knowledge, they are investing in land only and not equities or commodities.

Are prices going wild for land?

We have seen an increase in average arable land prices for grade 2/3 farmland moving from £3,000 per acre in 2006 to benchmark values today approaching £8,000 per acre. There have been exceptional examples of farms changing hands in the last year where bare land arable values have been closer to £10,000 per acre and even more in certain cases. It is very difficult to predict where prices will go from here but one of the key driving forces of the market is lack of supply and also the fact that UK farmland has looked cheap in comparison to some of its European neighbours. Between 2006 and 2011 there have been peaks and troughs, one of the high points being in 2008, just before the financial meltdown, where prices reached £7,500 per acre, dropping back to under £6,000 per acre the following year. This demonstrates the fluctuation in the marketplace.

Is investing in agricultural land the new gold?

Both individuals and funds see UK farmland as a "safe haven". Returns in farmland have historically been low in comparison to equities and other investments. Farming yields produce between a 1.5% - 2% yield on a rental basis and maybe more if the investor intends to farm in-hand but he also runs the risk of lower returns for reasons stated above.

What key things would you advise clients looking to invest in farmland?

As with all other forms of property investment, location and quality are the two key factors. This applies to individual investors looking for their farm or estate where they are attracted to the prime land owning counties in the south of England, ranging from Gloucestershire, Hampshire, Berkshire, Oxfordshire down to Dorset, to the commercial farming areas of eastern England where the best commercial farmland is located in East Anglia, Bedfordshire, Lincolnshire up to Yorkshire.

Individual buyers are inevitably looking for a principal house, protected by its own farmland without road noise or any other blights and are even more attracted to properties where there is sporting and amenity value. One of the rarest of breeds is the estate which contains a prime manor house, surrounded and protected by its own land with a commercial farming enterprise with sporting, including fishing and a shoot, and will always command a premium if brought to the market.

For commercial farmland, quality of land is paramount and the infrastructure involved in the form of good farm buildings, grain storage and roads, tracks within the farm, drainage etc are also important features.

What are the rules of investing in agriculture?

Whether the investor is looking to buy on his own account or as an investment for a hedge fund, buyers must accept that land has to be considered as a longer term investment than, for example equities, and its illiquidity, particularly if selling in a difficult market. Given the laws, rules and regulations surrounding agricultural and land ownership, there are also many pitfalls to overcome when purchasing land.

By Tanya Powley

Agricultural land prices have continued to rise in the first three months of the year, driven by a shortage of supply and strong demand from private investors and farmers.

Farmland values in England rose by 2.7 per cent to £5,700 an acre in the first quarter of 2011, the largest first-quarter growth in arable land prices since 2008, according to Savills.

But even though land values have risen by around 100 per cent over the past four years, agents believe there are still further strong price rises ahead. "Everyone is predicting considerable capital growth in land values over the years to come," says Mark McAndrew, head of Strutt & Parker's estates and farms department.

Strutt & Parker is forecasting a 10 per cent increase in average arable land values this year - and as much as 50 per cent over the next five years.

This has led to a growing number of private investors buying UK farmland as an investment. "High crop prices and the fundamentals of feeding the world's population continue to drive the interest in farmland as an investment asset," says Ian Bailey of Savills.

Aside from capital gains, agricultural land can provide substantial tax advantages for private investors. Farmland qualifies for agricultural property relief, which means that all the land, as well as a portion of the farmhouse, is exempt from inheritance tax after two years - provided the owner actively farms the land or has a farming contract in place based on shared profit.

Owners of farms can also qualify for three capital gains reliefs: rollover relief, holdover relief and entrepreneurs' relief, says Mike Harrison of Saffery Champness, the accountancy firm.

Private Property Search (PPS), a buying agent, says it has seen an increase in recent months of clients looking to purchase farms for investment purposes.

Ian Hepburn of PPS says private investors typically buy farms in the "fashionable" counties of Berkshire, Oxfordshire, Hampshire, Wiltshire and Dorset.

By contrast, farmland in the eastern counties are more geared to commercial operators who are attracted to the quality of the farmland and the ability to maximise returns.

"These investors include funds wanting to invest in commercial farmland, Europeans wanting to expand their farming interests in the UK and the bigger commercial farms," explains Hepburn.

However, the price of arable land varies significantly between these locations. "There's a North/South divide in the farmland market, similar to what's happening in the residential property market," says McAndrew.

He says the most visible sign of this is the boundary between Cambridgeshire and Lincolnshire. According to McAndrew, a 500-acre plot of arable land in Cambridgeshire would cost around £8,000 per acre, while a similar plot in South Lincolnshire would cost around £6,500 per acre.

McAndrew says land prices in Northern England currently look cheap. "If I was a buyer, I would be half inclined to sell my 500 acres in Wiltshire and go and buy 1,000 acres in Northumberland if I could find it," he says.

Case Study: It's a farmer's life for me

Graham Birch, the former head of Blackrock's natural resources team and former manager of the firm's World Gold Fund, left his job in 2009 to run two farms in Dorset.

Birch employed Private Property Search, a buying agent, to help him buy his first farm in 2007, and his second one last year.

He says anyone considering buying a large commercial farm should be flexible on location. "Not many farms change hands each year that fit that bill, so they are very difficult to come across," says Birch.

Birch says he wanted to buy land with strong commercial potential. "I'm more of a businessman and I believe the world will need more food, and the farming industry is going to go through a period of greater prosperity," he says.

He views farmland as a long-term investment. "It isn't something you should invest in on a get-rich-quick basis," he says.

"The buying and selling costs are significant and there's a relative lack of liquidity."

Birch stresses the importance of employing a good farm manager. "If you are going to make a profit in farming, you have to be really focused on the way that the farm operates," he warns.

Related links:

Private Property Search - your property buying agent in Berkshire

Private Property Search - your property buying agent in Oxfordshire

Private Property Search - your property buying agent in Hampshire

Private Property Search - your property buying agent in Wiltshire

Private Property Search - your property buying agent in Dorset

By Caroline McGhie

How we plan for retirement, and how we fund it, are becoming two major issues of our times. Most pension advisers suggest that you plan for 25 years of retirement, which can put a strain on the finances of even the most prudent savers. However, 'the situation isn't all gloom, because the older generation has lived through successive housing booms, and about 70% of over-65s are homeowners in a position to downsize and release equity,' says Emma Cleugh of Knight Frank, a specialist in retirement housing. The Council of Mortgage Lenders concurs, estimating that there's about £1 trillion of housing equity in the hands of people over 60.

Moving to a smaller house is the obvious choice for most retirees. 'They want to release equity to fund the later years, to pass on to the younger generation, or to pay the grandchildren's school fees,' says William Marsden-Smedley of Prime Purchase. This will not only allow you to free up capital from the sale, but also to reduce the ongoing maintenance costs that are linked to running a large house, such as heating.

Releasing equity isn't the only reason to consider downsizing. A home that's perfect for a family with children may turn into a burden when you get older, especially if it has features that can become difficult to maintain or negotiate, such as numerous flights of stairs or a large plot of land. Mr Marsden-Smedley recently helped a couple to downsize. 'They wanted to shed the financial and maintenance worries of running a big house, so we found an easy-to-manage village house where they could have a cleaner three times a week and someone to mow the lawn in the summer.'

Where to buy is as important as what to buy. Being close to family is a great benefit for retirees, but easy access to shops, doctors and cultural amenities all matter, as does a location with good access to public transport. Research by Knight Frank shows that, although older buyers have tended to gravitate towards beauty spots and coastal havens in the past, they are increasingly moving closer to towns and cities, which offer superior facilities within walking distance. 'You need a village with a shop, a surgery and a pub. Or a market town with a bank, shops and a good supermarket,' advises Private Property Search's David Milligan.

Retirees can make changes to their existing house-for example, ensuring that they can easily move from room to room, that at least one bedroom is on the main living floor, and that surfaces are slip-resistant (see Country Life, November 3, 2010)-or they can buy into a retirement development built by specialists such as Churchill Retirement Living. These properties are generally close to shops in good market towns, and have grab rails, waist-level electrical sockets, lifts, shared common rooms, call and alarm systems and managers who keep an eye on residents.

Then there are homes that offer a more comprehensive service. Last year, editor and author Diana Athill decided, in her nineties, to move into a home for the active elderly in Highgate, London. She now feels 'beautifully looked after'. Newlands Court, in Stow-on-the-Wold, offers a range of care options. You can rent or buy cottages (prices from £399,950) with a country-club atmosphere, with assisted living or full nursing care. A two-bedroom assisted living apartment at Newlands Court costs from £535 per week to rent, excluding service charge and assisted-living fee.

By Christopher Middleton

And with houses currently so scarce, some people are using buying agents to buy properties costing as little as £500,000. This means the agent walks away with a cheque for £15,000.

Is it worth it? Definitely, says mother of two teenagers Melanie Laidler, who used a buying agency to find the family house in Sussex she was looking for.

"My husband and I knew exactly what we wanted, but the estate agents seemed to take one look at us and decide we couldn't afford it," she says.

"After getting nowhere, we went to BDI Homefinders, who helped us buy a place we'd dismissed before because the photos on the particulars had been rather poor, and there weren't enough bedrooms. Our agent Sam pointed out how easy it would be to add a bedroom, then negotiated us enough of a discount [£1.15m instead of £1.2m] to pay her fees and more."

A typical story, says seasoned buying agent Saul Empson, of Haringtons. "Most people who come to us have been looking for at least two or three months," he says. "They're tired of hearing about other people buying places which they've never even got to see."

Indeed, the golden ticket that buying agents can offer is the one that allows clients in to view a house before it has appeared in the estate agent's window.

"In October to December last year, more than 70 per cent of houses we acquired for clients never went fully onto the market," says Jonathan Hopper, managing director of Garrington Homefinders. Other agents report similar levels of off-piste selling.

"We know who's out there, who's made a bid, who hasn't made a bid," says Peter Mackie of Property Vision, one of the biggest agencies. "We're all totally embedded in the business."

Others talk of local knowledge, trade contacts, networks of past clients and even dinner-party and front-doorstep gossip.

"I had one of my best tipoffs from the man who delivers my logs," says Tom Hudson, of specialist rural buying agents Middleton Advisors.

And once you have been whisked through the front door with a metaphorical blanket over your head, the buying agents are keen to clinch you a deal. Though not, it should be said, at any price.

"We know the history of a house, what it has sold for in the past, what comparable houses have sold for recently and whether it has been on the market, and been taken off again," Empson says.

"In London, we have access to a trade database called Lonres," says Jo Eccles, of Sourcing Property. "We can access any property's history, from how much it has been sold for to what work it has had done on it."

As well as researching the house, the buying agents investigate the area, to find out if a housing estate is liable to spring up on the back doorstep.

"The classic mistake is for unwary buyers to go and visit houses in a certain part of Oxfordshire at the weekend," Empson says.

"The planes from RAF Brize Norton don't fly on a Saturday or Sunday, but it's a different story in the week."

Naturally, all buying agencies claim they can save you from making that kind of mistake. So how do you choose between the firms?

The most noticeable difference is the fact that three of them are the buying arms of big estate agencies: Private Property Search (Strutt & Parker), The Buying Solution (Knight Frank) and Prime Purchase (Savills). Does this not represent a conflict of interest?

"Not at all," says Philip Selway, of The Buying Solution. "We don't have a privileged position, in terms of Knight Frank telling us about a property but not our rivals."

"We act for the buyers, and Strutt & Parker act for the sellers," says Ian Hepburn, of Private Property Search. "There's a very clear division."

Even so, Camilla Dell, of buying agency Black Brick, thinks independence is essential. "It's our unique selling point," she says. "No one can accuse us of divided loyalties."

Maybe not, but what people can say is that buying agencies are expensive.

With the odd exception, perhaps, such as London Property Match, run by grandmothers Sarah Snow and Suzanne Emson. They charge only a £587.50 signing-on deposit, plus one per cent of the purchase price.

"They're these motherly figures who talk total commonsense and cut through all the rubbish from the estate agents," says Chelsea art dealer James Harvey.

"They held our hands the whole way when we bought our house in Battersea."

So perhaps it is time for the ladies to put their prices up?

"Yes, a firm did try to take us over and make us charge two per cent, but we said no," says Snow, smiling.

"I think one per cent is quite enough, don't you?"

Not so secret agents

Do

• Ensure they have local knowledge
• Find an agent with whom you have a rapport
• Ask to speak to other satisfied clients

Don't

• Be impressed by smart offices
• Dawdle (the service stops after three to six months)
• Forget you have to pay on purchase

[Source: Telegraph.co.uk]

The first few months of this year have been similar to the last few months of 2010 with the market remaining mainly flat.  We do not predict any significant change to house values in the middle to top end of the residential sector covering the rural market in the South-East, central southern and South-West England during the Spring and Summer months.  There will be exceptions as some quality properties, correctly priced, will inevitably generate competition and fetch a premium.

The lack of supply of houses coming into the market may cause buyers to become increasingly frustrated at not finding what they want.  The apparent reluctance of vendors to bring their houses to the market is a likely reaction to recent stream of negative news such as the predicted interest rate rises, a rise in the cost of living, the Middle East crisis, Japanese tsunami (and subsequent radiation fears) and the Government austerity program beginning to take effect.  Traditionally, more buyers will come to the market over the Summer and they could find the supply curtailed, which compounds the situation.   A lack of supply, with increasing demand, could therefore result in prices for the most desirable properties increasing in the second half of the year.

The need, therefore, for expert  advice from a buying agent will be even more important, not only to be made aware of those houses that never hit the open market, but also to have the negotiations handled by a professional to increase the chance of success.    

Farms

Farmland values had remained within a very tight band between £2,000 - £3,000/acre for an extended period of time until the middle of 2007 when a number of national and global factors facing the farming industry became evident and wheat and other soft commodity prices started to climb.  This resulted in average agricultural land values moving from £3,000/acre in 2006 to around £6,000/acre at the beginning of 2008.  The market started to cool during 2008 and by the winter of 2008/2009 values had settled at around £5,500 - £6,000/acre.  They stayed around this level for about 12 months before starting to climb at the beginning of 2010, so that by the end of the year they were over £7,500/acre for Grade II/ III cereal arable land.

The reason for this growth is partly dictated by the increase in soft commodity prices but has also been exacerbated by the lack of supply of farmland coming to the market.  This has been at low levels for 3-4 years but the demand from both farmers (due to improved levels of profit) and non- agricultural investors (due to the safe nature of agricultural investments) remains strong.

Looking forward, it is likely that agricultural land values will remain strong and continue to rise due to wheat futures of £170/t for November 2011 and £140/t for November 2012 and the continuing supply and demand imbalance, strongly in favour of the latter.

Estates

There has been extremely strong competition for those residential and sporting estates coming on to the market over the last year, particularly for those within easy reach of London.

The very best estates with good houses and sporting potential have drawn interest from many different quarters, including overseas buyers, City bankers, hedge fund managers and other investors looking to roll over gains from the sale of their businesses.  Advance warning of such properties becoming available certainly provides a greater advantage for those serious about buying.

The estate market has mirrored the residential housing market to a greater extent over the last 3 years.  Following the market collapse in the second half of 2007 until Spring 2009, when estate buyers kept low profiles for fear of being seen to be active in the market place, the market gained renewed confidence and top quality estates sold well over their asking prices in 2010.

This sector of the property market, like the top end of the residential and farm market, will always be driven by supply and this year again there looks to be a shortage.

Looking ahead, estates which provide the best residential, farming and sporting qualities in southern England within striking distance of London will undoubtedly be in demand in 2011, in spite of the economic and political concerns the world is currently facing.

Equestrian

The market for equestrian properties is probably the least certain sector of the farmland market.  The equestrian property market has been affected by the troubles being experienced by the bloodstock industry generally in the last 2 years where stud and training establishments have suffered a sharp decline in fortunes.  Those establishments providing flexibility  where the equestrian facilities could be used as a stud, training establishment, show jumping, eventing or dressage will be in greater demand from the limited number of buyers in the market place, but all of these interests will be affected by the austere times currently being experienced.  The style and scale of the house is likely to be of more interest to an owner/occupier than purely on a commercial basis.