LETTINGS
9.9
9.7
12.8
19.9
18.2
SALES
10.2
14.6
11.4
12.4
9.4
Autumn Statement 2023 | Review and outlook 3
Foxtons
Taking stock
At the beginning of 2023, it looked
as though the wider UK economy and
housing market were beginning to recover
from the controversial mini-budget.
Inflation looked to have peaked, the
economy was calmer than expected
and forecasts for interest rates had been
pared back.
Moving forward six months, it's fair to say
progress has been steady, if a little slower
than we expected. Inflation and interest
rates have risen more sharply than
anticipated, making Londoners looking to
move or invest more cautious. At the same
REVIEW AND OUTLOOK
As we explained in the March 2023 London Report, the London property market
demonstrates remarkable resilience when you work with the right partner. At
Foxtons, we've listed 4% more properties to rent and 18% more properties to
sell than in the first half of 2022. At the same time, demand remains strong. In
the first half of 2023, we registered eighteen new renters for every property
listed to rent and nine new buyers for each property listed to sell. We have seen
high levels of enquiries for mortgage advice, demonstrating both a good level
of buyer intent, in spite of market headwinds, and that consumers increasingly
recognise the need to speak to a mortgage broker for tailored advice.
Throughout the year forecasts for the end of the year have been adjusted. Here we compare
forecast in the London report with those current for the end of 2023.
The number of lettings applicants continues to
outstrip availability, exceeding pre-pandemic
levels. Meanwhile, sales demand has returned
to the 'normal' levels seen pre-pandemic.
ECONOMIC OUTLOOK FOR THE END OF 2023
DEMAND / SUPPLY RATIO
Number of new applicants registering for
each new property listed
SEP 2023
FEB 2023
Dataloft, HM Treasury, ukinvesting.com. 1Swap rates show average for the month, not forecast for year end
0.4%
4.8%
6.8%
6.5%
5.6%
4.3%
0.1%
4.8%
-0.7%
4.2%
5.8%
4.7%
4.3%
4.5%
-0.9%
4.3%
Economy (GDP)
Inflation (CPI)
Price growth (RPI)
Earnings growth
Official bank rate
Unemployment
Household income growth
Swap rate1
We are starting to see a
more stable market emerge
with many lenders cutting the
pricing of their fixed-rate
products. In a changeable
market, it's more important
than ever that borrowers seek
out expert advice from a
credible and reputable
mortgage advisor.
TOM DAVIES
Managing Director
Alexander Hall
time, affordability remains a hot topic in
the rental market, where limited stock has
pushed rental values to record levels.
Foxtons outlook
There is the feeling that in the final few
months of this year we are witnessing
a turning point. The rate of inflation is
beginning to moderate and interest rates
were put on hold in September for the first
time since November 2021. On the back
of this and increased competition in the
mortgage market, we are starting to
see mortgage rates dropping, further
supporting clients looking to make their
next property move.
H1 19
H1 21
H1 20
H1 22
H1 23
58%
BUYERS AND RENTERS
REGISTERING FOR
HOMES IN LONDON
IN H1 2023 THAN IN H1 2019
the last comparable year before the
Covid pandemic
Foxtons
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