Residents of Salcombe, in Devon, has always liked to call their town southwestern solar capital of England, but now the city without jokes is considered one of the most expensive places to live in the country. Real estate prices in the port city with access to the English Channel were inflated by wealthy Londoners of retirement age.
Over the past quarter century, this small port town in the county of Devon has become extremely popular thanks to the rich Brits who want to buy a second home on the coast. Study conducted by Savills, shows that in April 2013 42% of properties in Salcombe is classified as a resort property.
This kind of love of the rich may seem strange, because Salcombe is 240 miles from London, there is no station, no highways, and has very bad parking. But is it enough to just walk around the city to understand the reasons for its popularity and sky-high real estate prices.
First, it is incredibly ideal. Sandy beaches, comfortable to ride on yachts harbor and wonderful nature, typical of the southern Devon. Second, many of the houses are on hills that offer great views of the Kingsbridge estuary. Third, regardless of the increased demand, Salcombe will not grow in breadth due to legislative restrictions and the notorious hills.
Jane Summers, a representative of the agency Marchand Petit, which is engaged in luxury real estate in the region, says she feels herself here like on a vacation in the countryside. Everybody here ride on yachts, lie on the beaches and walk the hills, Salcombe is like a huge playground, in a good way.
A survey conducted in 2012 on the site Prime-Location, showed that of the ten regions with the highest density of homes worth more than £2 million (€2.3 million) nine regions are from south-eastern England and the only one from the south-west - Salcombe.
The agency Knight Frank says that prices in Salcombe declined by 20% since 2007. However, this is due to a reduction in local demand, while demand from wealthy buyers remains at a high level.
Christy Bartlett of Stacks Property Search company notes that in 2013 more homes worth more than £1 million (€1.7 million) were bought here and the increase in duties reduced the demand for more expensive items £2 million (€2.3 million). He said the buyers in Salcombe are targeted people who do not consider options other than this port city.
Most of the buyers come from London, usually employees of the media or the financial sector in retirement age. Salcombe is now changing to meet the interests of this group of people. On the main street of the town there are shops and culinaries, elite clothing stores with gourmet food, and the main event of the summer was not a village fair but the exhibition of works by the artist Damien Hirst.
Local prices are also highlighted. From March 2012 to March 2013 the average price of housing in Salcombe was £481,597 (€563,150) in the South Hams the overall average price was £295,651 (€345,716), while in Plymouth, in 43 km from Salcombe, housing has an average cost of £157,608 (€184,297).
Property prices in Salcombe were strengthened by retraining of many hotels in the apartment buildings. Housing prices in these remakes are in the range of £1.5 million to £4.15 million (€1,7 mln to €4,8 mln). And on the other bank of the river is Gara Rock - remodeled boutique hotel on the top of the rock, in which there are two- and three bedroom lodges and apartments, personal patios and a public swimming pool. Such objects are sold for £520,000 - £685,000 (€608,000 - €801,000).
Also, wealthy clients often buy a house in the good place, demolish it and build a more prestigious mansion on his own understanding. The most prestigious thing in Salcombe is a personal access to the water. Such luxury is boasting, for example, the mansion of the XVIII century The Moult, which can be bought for £5 million (€ 5,8 mln).
Despite its high profile, Salcombe attracts not a lot of foreign buyers. Perhaps because the town is really easy to reach. The nearest international airport is in Exeter - half an hour away by car. In addition, the climate in the south-west of England is less pleasing to the international glamor party than for the local rich.
But even without foreign participation Salcombe housing market remains at the same high level as in some parts of the Mediterranean or the Caribbean. Many homes boast exceptional design and quality of construction, and are not worse than the best resorts in Europe. So the only thing Salcombe is really missing, whatever the locals may think, it's sunny days.
Text: Ivan Ulitin, ee24.com, based on Financial Times
Photo: sea-n-shore.com, bluechipholidays.co.uk, upload.wikimedia.org
Salcombe on the map of the UK, full size