Northern property: Brass once more in the North

Published 30th Oct 2007

At the top end of the market, the North is holding its head high as the wealthy clamour for fine country houses and city penthouses, reports Graham Norwood

To those in the North it will come as no surprise. To many southerners, however, it may be time to adjust a few stereotypes. In the 21st century the cities and counties above the Watford Gap are shedding any remaining image of industrial decline and cheap homes. Instead the North has become a new haven for the wealthy, far from the London rat race, and offering an exceptional quality of life.

Just ask Pattie and John Wilson. Pattie, a retired financier, spent 12 years in the Cotwolds before moving to what she calls "wild and woolly" Northumberland with her husband John, a retired judge, in 2000.

Now she enthuses about car-free roads, starkly beautiful countryside and a coastline free of madding crowds. But she says the region is also perfect for wealthier home owners. There is money there once again.

"I've seen the north-south divide disappear really. We're 30 minutes from Newcastle, which is now one of the cultural centres of the UK. The conversions of warehouses into glamorous homes and offices remind me of Canary Wharf," she says. "We're also just two and a half hours from London by train, and an hour and a half from Edinburgh, so have two capitals within easy reach." The Wilsons - who are moving within the region and selling their eight-bedroom Grade II country house, Newbrough Park in Hexham for £1•75 million (Strutt & Parker, 01670 516123) - are part of the North's growing band of property millionaires.

The Centre for Economics and Business Research, which compiles an annual rich list, reports that northern England is now home to 9•6 per cent of the UK's 425,000 millionaires, up by a 10th since 2003. Ledbury Research says that around one in five of the wealthiest 5 per cent is in the north of England, particularly around Yorkshire, Lancashire and Cheshire.

That means demand for the best properties is soaring. As Hometrack this week reports price drops in the overheated prime London and south-east market, top-end homes in the North are faring better. In the city centres penthouses have hit record high values.

Altrincham, Macclesfield and Wilmslow, in Cheshire, are the most popular northern hot-spots - more £1 million-plus homes were bought in these three areas than in any other location outside central London.

Economists say the new-found wealth comes from regenerated big cities. In Leeds more than 100,000 people, a quarter of the workforce, are in financial services and Manchester has the UK's largest local economy outside London, according to consultancy Cushman and Wakefield; meanwhile Newcastle upon Tyne has the UK's fastest growing regional airport.

Money produced within these big cities is pouring out to the nearby countryside, where the wealth-generators are buying their piles. "For the very best properties you need to be more than a millionaire - you actually need three or four million," says Toby Milbank of Knight Frank. "And be prepared to tough it out with a lot of rival buyers. I sold a home in Knaresborough in September, on the market for £1•75 million and needing £500,000 to £1 million spending on it. Within two weeks it had 55 viewings - most were very serious buyers - and it sold for over £2 million a few days later."

A decade ago, Toby reckons a top-end country house in the north of England would sell for 50 per cent less than a similar property in the Home Counties. Now it's more like 25 to 35 per cent less. "The north-south gap is disappearing at the top end," he insists. Indeed, according to September's Land Registry figures, Yorkshire & Humber overtook London as the region with the highest monthly house price growth.

Don Low won't be surprised. He runs the Yorkshire branch of County Homesearch, a buying agency for well-heeled purchasers moving into the region. "A lot of homes here stay in the same family for generations, so there's always a shortage." "Access to airports such as Leeds/Bradford and Teeside International is important, as is access to train stations at Leeds, York or Northallerton and to the arterial A1 route," explains Phillippa Faith of Strutt & Parker in Harrogate.

A snapshot of those on sale this month on www.primelocation.com - a website specialising in top-end homes - gives a fascinating insight into how large the millionaires' market has become in northern England.

Cheshire is top with 230 homes for £1million or more. Then comes Yorkshire on 110 and Lancashire on 45. Tyne and Wear 33, Derbyshire 30, Cumbria 25, County Durham 15, Manchester 11 and Merseyside on 8. A surprise to many is the number of £1million-plus homes on sale in Northumberland - 45.

There's one additional factor affecting the market in the North: football. Estate agents estimate around 80 £1 million-plus northern homes change hands every year to people in the sport, not only to players but club managers and sponsors, too.

"It's a unique market. The players want new-builds they can customise to meet their requirements, within easy driving distance of the training ground and the club, usually in a semi-rural location," explains Louisa Allen of Players, a specialist buying agency.

"We act for players not only to find a property but to negotiate its price. In many ways now the North is just like the South, because the facilities for players moving up or coming into the country are as good in Manchester as they are in London. The one difference is that we seem to be able to drive a better deal," Louisa insists.

One disadvantage, perhaps, remains - the weather.

"It's God's own country up here, but it's a bit chillier and perhaps a bit wetter than in the South," says Pattie Wilson. "But when you look at what we've got these days, it's worth putting up with."

Look out for...
Lancashire
Not a millionaire's hot-spot yet, but cheaper than Yorkshire and becoming more popular

Ilkley
This west Yorkshire spa town is lined with classic Victorian buildings and is seeing the fastest growth in £1 million-plus houses

Cheshire
With its gin-and-Jags reputation developing, there are more new detached £1million-plus houses under construction here than in central London

Source: estate agents, buying agents

Source: ' Estate & Buying Agents '

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