JOHN ENNIS
MANAGING DIRECTOR - NEW HOMES
AND CENTRAL LONDON
Supply/demand
balance
Instructions
Registered buyers
and tenants
£psf
Finance factors
Credit availability
Interest rates
Currency exchange
Macro
factors
Brexit
General election
Policy
Investment
PRICING FRAMEWORK
Foxtons use this structured
process to assess the current
strength of a market and to
set prices.
Q&A
After 21 years at Foxtons, and
15 years in the new homes
sector, John reflects on what's
driving supply, demand and
pricing in today's market.
Q HELP TO BUY WILL END IN 2023, WHAT WILL THAT
MEAN FOR THE MARKET?
A Help to Buy enticed first-time buyers back
to the market, and developers designed for
them. In 2013 when the scheme was
launched, Help to Buy was responsible for
10.1% of new homes sales. In the first half
of 2019 that figure was 43.4%. If it's not
extended or replaced, supply and confidence
will take a hit. I look forward to seeing what
new schemes will be introduced in the future.
Q WHAT HAS HAPPENED TO INVESTOR BUYERS?
A Less than a quarter of sales went to
investors last year; five years ago it was
more like two thirds. Most investor buyers
these days are parents buying to save their
kids renting. Buying a secure apartment in
a safe location is more important to this
group of people than the potential rental
yield. Overseas buyers still see London as a
safe haven and continue to benefit from the
currency conversion into sterling.
Q WE HAVE A HOUSING CRISIS, BUT ARE WE
BUILDING WHAT THE MARKET NEEDS?
A The market has been strong below
£600,000. Above that there's some
build-up of unsold units - although the
post-election boost is driving demand
and sales are definitely up. It's a case of
matching buyer to stock; we will move
people around London to find the
right match.
Q WHAT WILL DRIVE PRICE GROWTH IN A
LOCATION?
A It's important to be analytical.
At Foxtons we use frameworks,
and our staff are trained to go through
a structured process. We use the
Decision Triangle, Quantum Factors
and the Pricing Framework to
understand the nuances of all the
areas in which we operate.
Economic
fundamentals
Inflation
Employment
Earnings
Interest rates
Demographics
Population growth
Migration
Socio-demographic
profile
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