Stockholm: Fancy a Sweden sensation?

By Laura Henderson
Posted: 2010/02/24

A favourite with A-list escapees such as Mrs Tiger Woods, Stockholm's weekender islands are now attracting UK buyers in search of peace and quiet far from the dodgy euro

FAGLARO Island Estate off the east coast of Sweden has peeling paintwork, antiquated plumbing and is reachable only by ferry. Elin Nordegren Woods paid £1.4million in December for the "rustic" 58,000 sq ft farmstead, which includes a main house, three guest cottages and a custom-built jetty. It has given her paparazzi-free thinking space away from now repentant husband Tiger.

Buying in the Stockholm archipelago comes with a long-standing privacy pedigree. The 19th century kick-started the trend for island summerhouses w hen Sweden's increasingly affluent population were in search of somewhere tranquil and scenic to spend their short but often glorious summers.
Residences were passed down from generation to generation but this tradition has slowly died out, replaced by a cosmopolitan pool of newcomers.
"The islands have their share of famous residents, " says Stefan Landsberg of local agents Castelli.

"Agnetha Fältskog of Abba has a place on Ekero, tennis champion Björn Borg owns a pad on Ingaro, while Ulrika Jonsson splashed out £1million on an 18th-century manor house on Varmdo."

Britta Sugden of Homes in Sweden adds: "Brits have often discounted Sweden because of its pricey reputation.

However, the cost of living has come down in recent years."

Lakeside homes within driving distance of the capital can be picked up for as little as £100,000.

"A further incentive is the stability of the krona, " says Sugden. "Sweden has had a soft landing from the recession with the Finance Ministry predicting GDP growth of three per cent in 2010, compared to 1.2 per cent in Spain and 0.7 per cent in Portugal."

Of the 24,000 islands, many are virtual suburbs of the capital, connected to the mainland by bridge or car ferry.

Beaches, orchid meadows and pine forests define the inner core while the landscape shifts to craggy skerries out in the Baltic Sea.

Richard Watkinson from Sheffield bought his £770,000 six-bedroomed waterfront home on the car-free island of Edlunda in 2007 and has spent his spare time since doing it up to run as a luxury rental home business. "Being just 40 minutes from Stockholm, with daily flights from the UK, makes it easy for friends and family to visit, " he says.

The bulk of investor interest has focused on the east-lying islands of Vaxholm and Sandhamn, and west coast Marstrand. "About 85 per cent of property is in private hands, " explains Stefan Landsberg. "The remainder of land is owned by the Archipelago Foundation."

Prices continue to rise by about 10 to 15 per cent a year, confirms Ann Nyström of Stockholm agents Per Nyström. "A modest, pine-clad affair with a boathouse can be picked up for £200,000, " she adds. "Rentals are lucrative. June and July, when the Swedes take their holidays, can net you £2,000 a week."

Richard Watkinson adds : "My son loves the fishing and the beach. For me it's the best antidote to city life going."

BUYING IN SWEDEN:
No restrictions on foreign ownership. one to four per cent solicitor's fees.
Stamp duty is charged at 1.5 per cent of the purchase price.
Annual property tax of 0.75 per cent is payable up to a maximum of 6,387 Skr (approximately £550). New homes are exempt for at least five years.

MORE INFORMATION:
differentdoor.com, 0046 70816 3925.
castelli.se, 0046 8662 1410.
sjonara.se, 0046 8522 34800.
pernystrom.se, 0046 8542 47062.
svenskfast.se, 0046 8505 35800.
skandiamaklarna.com, 0046 8505 50200.
homesinsweden.com, 0131 663 7605.