Both currently used as hotels, the two properties can be converted into a residential property for a buyer looking for the ultimate private escape
2 min
For buyers interested in taking their home security to the next level, this pair of historic forts floating off the coast of England might suit.
The duo, dubbed No Mans Fort and Spitbank Fort, are nestled in the sea between the Isle of Wight and Portsmouth on the mainland and they’re headed under the hammer with Savills on June 18 with a guide price of £1 million (US$1.26 million) each.
Though both are currently used as hotels, each has pre-existing permission to be converted into a residential property for a buyer or buyers looking for the ultimate private escape.
Both forts, which have previously been on the market for £4.25 million and £4 million, respectively, “offer an opportunity like no other; a waterfront location, up to 99,000 square feet of space and a chance to champion the heritage and legacy of these iconic maritime structures,” said Robin Howeson, head of Savills Auctions, in a news release.
Mansion Global couldn’t identify the owners, but according to Savills, they’ve held both of the unique properties for 12 years.
No Mans Fort is roughly a 35-minute boat ride from the mainland. Over its four levels, it has 23 bedrooms, plus staff quarters, a restaurant, bars, a traditional English pub, a rooftop terrace and a nightclub.
Spitbank Fort is a little closer to land, sitting in the mouth of Portsmouth Harbour, and spans three floors with nine bedrooms, a restaurant, bars, a wine cave, a games room, a pool and spa facilities. There’s also a scenic rooftop terrace, a sun deck and a fire pit.
“Throughout my career as an auctioneer I’ve seen several sea forts hit the market that have achieved impressive prices,” Howeson said, calling such forts trophy assets. “I anticipate there to be a global interest from multiple buyer types looking to take the forts into their next chapter, whether that’s as a new commercial venture or residential home.”
In 2022, Savills auctions sold the unmodernized Bull Sandfort in the Humber Estuary on the east coast of Northern England for £490,000, nearly 10 times its guide price after worldwide competition from bidders in 27 countries, the firm said.
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Report by the San Francisco Fed shows small increase in premiums for properties further away from the sites of recent fires
3 min
Wildfires in California have grown more frequent and more catastrophic in recent years, and that’s beginning to reflect in home values, according to a report by the San Francisco Fed released Monday.
The effect on home values has grown over time, and does not appear to be offset by access to insurance. However, “being farther from past fires is associated with a boost in home value of about 2% for homes of average value,” the report said.
In the decade between 2010 and 2020, wildfires lashed 715,000 acres per year on average in California, 81% more than the 1990s. At the same time, the fires destroyed more than 10 times as many structures, with over 4,000 per year damaged by fire in the 2010s, compared with 355 in the 1990s, according to data from the United States Department of Agriculture cited by the report.
That was due in part to a number of particularly large and destructive fires in 2017 and 2018, such as the Camp and Tubbs fires, as well the number of homes built in areas vulnerable to wildfires, per the USDA account.
The Camp fire in 2018 was the most damaging in California by a wide margin, destroying over 18,000 structures, though it wasn’t even in the top 20 of the state’s largest fires by acreage. The Mendocino Complex fire earlier that same year was the largest ever at the time, in terms of area, but has since been eclipsed by even larger fires in 2020 and 2021.
As the threat of wildfires becomes more prevalent, the downward effect on home values has increased. The study compared how wildfires impacted home values before and after 2017, and found that in the latter period studied—from 2018 and 2021—homes farther from a recent wildfire earned a premium of roughly $15,000 to $20,000 over similar homes, about $10,000 more than prior to 2017.
The effect was especially pronounced in the mountainous areas around Los Angeles and the Sierra Nevada mountains, since they were closer to where wildfires burned, per the report.
The study also checked whether insurance was enough to offset the hit to values, but found its effect negligible. That was true for both public and private insurance options, even though private options provide broader coverage than the state’s FAIR Plan, which acts as an insurer of last resort and provides coverage for the structure only, not its contents or other types of damages covered by typical homeowners insurance.
“While having insurance can help mitigate some of the costs associated with fire episodes, our results suggest that insurance does little to improve the adverse effects on property values,” the report said.
While wildfires affect homes across the spectrum of values, many luxury homes in California tend to be located in areas particularly vulnerable to the threat of fire.
“From my experience, the high-end homes tend to be up in the hills,” said Ari Weintrub, a real estate agent with Sotheby’s in Los Angeles. “It’s up and removed from down below.”
That puts them in exposed, vegetated areas where brush or forest fires are a hazard, he said.
While the effect of wildfire risk on home values is minimal for now, it could grow over time, the report warns. “This pattern may become stronger in years to come if residential construction continues to expand into areas with higher fire risk and if trends in wildfire severity continue.”
