The people:property match

Finding someone to buy or rent live/work

It goes without saying that selling or letting live/work is going to take a lot more effort than finding takers for a residential property or even commercial premises. Uppermost is the challenge of matching this unique living and working arrangement to people who genuinely want and can afford the lifestyle. This applies equally to buying and renting.

The second challenge is ensuring that the type of business they’ll bring is suited to the development – and its neighbours. And remember, live/work is not aimed at the sort of work you can comfortably undertake in a spare room or, perhaps less comfortably, at the dinner table.

For starters, the work area of the property will probably be built to a much higher specification for technology, power sockets, sound insulation and floor weighting. It will look and feel professional. And in many cases, the living and working areas are physically separated, as are the access routes.

This is serious stuff for people who are serious about their business. They may already have one or more employees or associates or they may be starting a new business with an eye to future expansion.

Knowing your target market

Typically those attracted to the live/work lifestyle have been entrepreneurs with professions spanning, in the main, information and computer technology and the creative industries such as graphic design, fine arts, new media and architecture.

But there are many professions that have long operated from semi-residential premises, among them legal, accounting and medical practices. They, along with PR companies and sales personnel, number among recent buyers of live/work properties in London.

It's worth noting however that anyone looking to raise a mortgage for a live/work property may find lenders imposing restrictions on the type of business use they will consider.

The experts say

This website advertises live/work property across the UK and Ireland. But we are not estate or lettings agents. We spoke to some of those leading the field in sales and rentals of live/work to ask their views on the key points to remember.

Simon Harris at specialist south-east live/work estate agents Cityscope told us: ‘Some research we did recently found that 80% of the live/workers we’d found a property for had ended up live/working in a neighbourhood they’d never anticipated moving to.’ The lesson from this, he suggests, is that the net should be cast wide, with marketing for live/work property geared to a nationwide audience.

Harris notes that the last 10 years has seen a major change in the type of work environment people are seeking. 'The need for a conventional office/studio has lessened, especially when people see the much more efficient and convenient environment a live/work property can offer.'

Developer Ian Harrabin is director of Complex Development Projects and the driving force behind Electric Wharf, Coventry’s first live/work development and now a thriving arts community in an area targeted for urban renewal. Cost, Ian advised us, is a major issue for potential live/workers, especially artists who are just starting up.

Another expert in the field, Raphael Ambalo of Investland, told us London live/workers were primarily looking to buy in fringe areas of the city, in areas that are not yet up and coming but will be in five to 10 years' time.

As property values rise (as those who live/work in the once far from fashionable Bermondsey area can testify) so does that initial investment. It’s a London-centric view, but one that could equally apply to the UK’s other urban renewal zones, and even to rural market towns – an emerging market for live/work.

So what are live/workers specifically asking for? According to our experts, the list of demands is topped by:

broadband
separate access to the live and work areas
a distinctly separate work or studio area
or a large open plan space with an undesignated work area
'shell' conditions so they can customise the work and living areas to their own needs and preferences
parking space
good security
local amenities within walking distance
oh, and can they have a cat...

Finding your buyer/TENANT

Though some live/work developments, notably those for affordable rent, are planned with a specific audience in mind, such as fine arts graduates, for the most part you’ll be looking for people with the drive, vision and budget for live/work.

It’s here that live/work finds its similarities with sales and lettings of residential and commercial premises – the speed and range of internet advertising makes it your best available option.

Remember, as Cityscope advises, the right product may attract people to live/work in an area they may not previously have considered. Estate agents with an established track record in live/work sales are more likely to be approached, points out Harris, though he adds they may not be easy to find.

'If you were selling a Hockney, you wouldn't give it to a dealer or auction specialising in Dutch masters,' adds Harris. 'If you want to sell your live/work property give it to an agent who not only understands the property but also has considerable experience in selling similar properties.'

But also remember that, with live/work still very much a niche market, you need to appeal to both those who know what they’re looking for and potential converts to the cause, so get in those key words that a Google search will pick up.

And don’t overlook the obvious! www.liveworkhomes.co.uk is still the only online resource for finding exclusively live/work properties. What’s more we consistently appear at or near the top of Google search results for live/work property and live/work homes. So placing an advert with us could bring vital business straight your way.

If you would like to find out more about advertising on this website, email lizwjones@liveworkhomes.co.uk

Don’t just take our word for it

According to our experts, the market for live/work is buoyant and growing. 'Last year Cityscope received about 10 enquiries a week for live/work properties,' says Harris. 'In 2007 we're getting anything up to 30 to 40 enquiries a week. At any one time there's very little available on the market to buy but when it does come up it tends to sell within days, in some cases on the same day!'

Raphael Ambalo, acquisitions, sales and lettings for property development company Investland Group plc had this to say: 'Investland recently took out a home page featured property advertisement on liveworkhomes for our penthouse property at Benyon Wharf. The interest we’ve had exceeded all our expectations with almost daily calls from people interested in the property. Anyone selling/letting live/work should definitely look to market their properties on liveworkhomes.'

'We had over 20 quality leads from liveworkhomes and are very pleased with the service we’ve had to date,' said Beverley Davey, sales, publicity and communications manager at housing association Dominion Housing Group, which in late 2006 completed its first live/work development for part-sale, part rent at Burford Wharf in east London.

Live/work’s big selling points

lower costs from one set of bills for the mortgage and utility bills, though offset by business rates and possibly also capital gains tax
less travelling to and from work means more time for leisure (or business – depending on your priorities)
definitely the greener option – much lower environmental impact and fewer wasted resources from the construction process (two buildings for the environmental price of one) and significantly reduced greenhouse gas emissions from cutting the commute
supportive business environment – many live/workers reap social and economic benefits from working and living alongside like-minded or complementary businesses and increasingly schemes are being designed to offer additional business facilities and support
enhanced security from living in a community where people are either working (quietly) or living 24-hours a day.

The buyer’s mortgage dilemma

Marketing to potential live/work buyers is complicated by a secondary factor – finding a lender who’ll give them a mortgage. Though the market is limited, and hamstrung by widespread and ongoing failure to recognise live/work as a distinct property type, there are lenders who understand live/work and are happy to lend on it. This subject is covered in depth here.

The survey

As with any property you’re planning to buy a survey is essential, and if you’re taking on a mortgage your lender will want the property checked by a professional surveyor. But as of 1 June 2007, the vendors of all residential properties for sale will need to produce a home information pack (HIP).

How this applies to live/work is less clear. According to Jacqui Daly of Urbanspaces live/work properties will be exempt. But the advice we got from the government was less clear cut. If a property is dual use – so can be used for both residential and non-residential purposes simultaneously, and this is specified in the marketing material – it is exempt, it confirmed.

But the HIP team then listed a string of reasons why a live/work property might be considered ‘homeworking’, which is not exempt from the HIP requirement. We suggest play it safe and email the HIP enquiry team direct.

DEVELOPERS - getting it right

Finally, if you are a live/work developer, we recommend that you join Live Work Network to stay on top of best practice and get all the news on planning decisions, national policy and trends in the market.

Director Tim Dwelly comments: 'We often find developers coming to us late in the planning process when problems begin to emerge. We can often see immediately that the designs or proposed use restrictions will damage sales or even make mortgages hard to obtain. The best approach is to consider using our consultancy services early to create the most marketable scheme and maximise the chances of obtaining planning consent.'

Developers wanting to find out more about Live Work Network consultancy services or advice on agents to sell or let their properties can contact Tim Dwelly on 01736 331 872 or email him.