Annual change metrics (2022 vs 2021)
Foxtons Foxtons Foxtons/Zoopla Foxtons
SUPPLY
change in new
instructions
-1.7%
11.5%
-1.2%
3.2%
ACTIVITY AVERAGE PRICES
change in
exchanges
average prices achieved
(£ per square foot)
3.0%
-5.5%
-15.9%
-11.5%
-0.9%
1.3%
4.2%
5.7%
DEMAND
change in buyer
registrations
4.7%
1.4%
-9.9%
-4.0%
The London Report 2023 | London's sales market 9
JEAN JAMESON
CHIEF SALES OFFICER
SALES
With demand for properties exceeding pre-pandemic
levels and stock levels remaining constrained for much
of the year, the first half of 2022 was strong for the
London sales market. Buyers became more cautious
towards the end of the year, juggling the rising costs
of living, increased mortgage rates and economic
uncertainty with the long-term benefits of investment.
I AM IMMENSELY PROUD OF THE
WAY THE FOXTONS SALES TEAMS
HAVE ADAPTED TO THE CHANGING
MARKET CONDITIONS OVER 2022.
The cost of living crisis is putting some
strain on buyers, but those who are able
to commit will find many opportunities
in 2023.
Early indications from the beginning
of 2023 are that mortgage rates are
stabilising, looking to settle at around
4%; this is an improvement on the 6%
predicted at the end of last year. Although
the rise in living and mortgage costs will
deter some first-time buyers, the rising
rental market is encouraging some to
make the decision to buy, boosted by
first-time buyer stamp duty exemptions
under £425,000 and a reduced fee up
to £625,000.
With typical sales prices anticipated to
drop by between 10% and 15% over the
year, 2023 looks set to be a buyer's market.
The age old adage that you make money
when you buy, not sell, will be particularly
important this year with those looking to
upgrade set to secure an even bigger
discount. It will be a great time to move
up the ladder.
Meanwhile, the lack of new housing stock
will continue to support the market over
the longer term. London has seen price
corrections before but remains a solid
long-term investment opportunity. Over
the last 20 years, despite a global financial
crisis, pandemic and political uncertainty,
sales prices have still risen by 166%.
2022 FAVOURED
SELLERS BUT THE
PENDULUM WILL
LIKELY SWING IN
FAVOUR OF BUYERS
IN 2023.
The London Report 2023 | London's sales market 9