Matthew Sinclair « Property News from Saint Property

Wind energy drive could lead to stormy differences in opinion - Scotsman Moving Matters 28 October 2010
Tuesday, November 2nd, 2010

A MASSIVE drive to increase the amount of wind energy generated in Britain will have a significant effect on buyers of rural property in Scotland, according to experts.

But future planning for wind farms can have a positive or negative effect on values, depending on the types of property, with some buyers desperate to avoid having their views obstructed, while others are looking for land to develop to take advantage of new renewable energy targets.

Matthew Sinclair, Director of Saint Property, says: “It is crucial for those looking to avoid purchasing a property on the vicinity of a planned wind farm that they carry out thorough research first or seek expert advice.”

This “dash for wind” is the result of tough European climate change targets which state that Britain must generate 15 percent of its energy from renewable sources by 2010, the “lion’s share” of which will come from wind. Over the next ten years, the Government is aiming to build 10,000 new wind turbines on land and at sea to meet this target.

By law, a tenth of the electricity sold by energy companies must come from green sources this year and this figure will rise to 15 per cent by 2015.

“Scotland is well places in terms of renewable resources”, says Sinclair. “The Scottish Government is on course to exceed aims to generate over 30 per cent of the country’s electricity from renewable sources by 2011 and recently raised its target from 50 per cent to 80 per cent by 2010, with the number of turbines in the country set to treble to almost 4,000 by the end of 2012.”

Scotland is home to Whitlee, Europe’s largest onshore wind farm. It is set for a further expansion which will make it one of the biggest wind farms in the world.

Sinclair says: “Most buyers of rural property do not want their new home to be situated close to a wind farm, due to the turbines being perceived as an eyesore and causing a certain amount of sound pollution.”

But he says that his company also has a number of clients on its books who are looking to develop wind farms. He believes the two parties can exist happily together in rural Scotland, with careful planning and consideration on both sides.

“Wind farm developments are often met with fierce opposition from local communities, so choosing an appropriate location is a key factor”, says Matthew Sinclair. “Applications are very likely to be turned down if the development will affect designated Areas of Outstanding Natural Beauty or Sites of Special Scientific Interest.

Other considerations are how reliable the wind is at this location and access to the grid. Locations along the Beauly to Denny power line, from the Highlands to Falkirk, will be key targets for development.”

And the new opportunities don’t just exist for large land owners or business investors. Owners of rural property can in fact make the most of Scotland’s wind resources themselves with a small wind turbine, if their property is suitable. With new technology and the introduction of Feed-In Tariffs this year, which pay out to those who generate their own “clean” electricity, payback time has dropped in many cases from 35 years to ten, and owners are protected from any future energy price increases. In addition, there are capital tax allowances, and banks are increasingly looking favourably on this type of investment.

An interesting angle on this is the expected rise in community ownership of wind turbines, such as that in Findhorn Eco Village in Moray.

For landowners, leasing to wind farm developers can generate annual rent of approximately £7,500 per turbine, which will increase after ten years and then again after 20. It can also still be possible to utilise the land around the turbines, so in many cases agriculture can continue.

The Scotsman Moving Matters, As high-flyers migrate, prices of high end property is under pressure. 23 September 2010
Thursday, September 30th, 2010

As senior business figures warn of a “bankers’ exodus” from Edinburgh to London, some property commentators are predicting that the result will be an over supply of top end property, with continued pressure on prices.

It has been reported that senior employees in the banking industry who have until now divided their time between the Scottish and English capitals are spending an increasing amount of time in London, taking the trappings of their luxury lifestyle with them.

Two in three Edinburgh homes worth £1 million or more are thought to be owned by senior bankers.

Matthew Sinclair, Director of Saint Property, says: “A migration of bankers and leading figures from associated professions, such as accounting and insurance, to London would certainly have a weakening effect on the property market, causing a ripple effect from the top down.”

Research by Saint Property suggests Edinburgh already has a good supply of property for sale at the top end, which will only increase if the anticipated departure of top earners takes place.

Saint Property’s research shows there are currently 26 properties on the open market in Edinburgh with an asking price of £1.5 million or more, worth a total of over £50 million.

The average price of one of these properties is just under £2 million. The highest number of properties in this price bracket can be found in Edinburgh’s central New Town, and the highest average asking price per square meter can be found in the leafy southern suburb of the Grange.

But the number of properties in this price bracket would be significantly higher if homes being sold on the private market were to be taken into account; in Edinburgh these off-market sales have been a common way for deals at the top end of the market.

According to Sinclair: “Expats living in the Far East are the most likely to take advantage of an over supply and subsequent drop in prices. Those seeking a base in the UK for a holiday home or a family home to return to will find an excellent choice of top-end property in Edinburgh and value for money in terms of price per square meter.”

Meanwhile, according to Peter Strang Steel of Strang Steel Property search, there may well be a surge in rural properties coming to the market too as a result of the Government’s proposals to restrict the use of “loss relief” – one of the most attractive tax breaks for holiday homes.

The Scotsman, £256m homes glut as rural sellers hold firm. Jeff Salway. 25 September 2010
Tuesday, September 28th, 2010

MORE than £265 million worth of rural property lies unsold on the Scottish market as sellers refuse to lower their asking prices, it has been estimated.

There has been a £10m increase in the past month in the value of rural properties on the market with an asking price of £1.5m-plus,

according to research by Saint Property. More than 90 country homes, estates and farms have been on the market for an average of eight months, including eight in East Lothian at a total value of nearly £50m.

Matthew Sinclair, director of Saint Property, said country houses were currently the hardest to sell, primarily because they are often overvalued.

“There remains a significant difference between what people will pay and what the sellers will accept. Unless we see price reductions then the bottom line figure of available property will simply grow.”

However there is demand for rural homes from several quarters, including Edinburgh, the south of England and the Far East. “This is encouraging as there are certainly purchasers dipping their toe back into the water, however they are doing it with caution,” said Sinclair.

“They have been monitoring the market and they see plenty of property unsold or re-advertised so they are in no great rush to move.”

And the number of high end properties struggling to sell could continue to rise if a housing market double-dip materialises, as looks increasingly likely. Lending figures published by the British Bankers’ Association and the Council of Mortgage Lenders this week showed a further decline in activity in August, with mortgage advances slipping to a 10-year low for the month.

“We may see stock sold at the backend but there is plenty lining up to take its place,” said Sinclair.

“It is difficult to say what sort of asking price reductions we need to see, but where property has seen the asking price reduced by 30 per cent or more, it has normally generated the interest to sell.”

But Simon Rettie, managing director of property management and sales company Rettie & Co, disputed the downbeat picture painted by Sinclair. “The average property in that area of the market is taking longer to sell than a couple of years ago but good properties are selling in a reasonable period of time,” he reported. “There has also been an increase in cash transactions happening on a private basis.”

Rettie said his firm has already sold more £1m properties in September than in the rest of 2010 combined. But Sinclair believes there is an oversupply of high-end properties in the capital. He warned earlier this month that an exodus of bankers from Edinburgh to London and other financial markets would weaken the capital’s housing market, causing a ripple effect from the top-down