PRIME
CENTRAL MARKET
LONDON'S SALES
MARKET
We've looked at seven key market indicators
for the London sales market in 2019, based on
Foxtons' proprietary database. For over 15 years
Foxtons has maintained accurate data on
applicant registrations, new listings and prices
achieved, and created metrics such as the ratio
of buyers per property, which rose to its highest
level for five years in 2019.
A rise in the ratio of buyers per property
normally leads to price growth, but confidence
was weighed down by Brexit uncertainty
throughout 2019 and activity remained low.
That changed early in 2020 as applicant numbers
soared - one of the most reliable early indicators
for the housing market.
Prime Central London has its own unique market
dynamic. It was the first to feel the downturn
caused by stamp duty reform and bore the brunt
of Brexit uncertainty. We examine the impact of
high transaction costs in this market by
comparing the total cost of renting versus buying
over short time horizons. Chris Sellwood shares
some experiences of operating in this special
market with its highly prized heritage building
stock, and its wealthy, cosmopolitan and
footloose residents.
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BUILDING LONDON
TECHNOLOGY
The new homes market operates against a
backdrop of government policy designed to
promote first-time buyers and discourage
investors. We consider how that has influenced
the type of stock in the development pipeline.
John Ennis reflects on the steep rise in Help
to Buy in London new homes since 2013 and
the changing profile of investor buyers.
Sarah Tonkinson shares her thoughts on the
fast-growing Build to Rent sector, highlighting
the importance of mobility and the earlyadopter
mind-set of tenants, as proven by
their willingness to move to new areas and
try new offerings.
Workplace technology is central to Foxtons'
business model. We describe BOS, our proprietary
CRM (customer relationship management) system
which connects all our offices, and enables us to
share applicants across the whole network. The
My Foxtons app is a mobile platform for buyers,
vendors, landlords and tenants to have immediate
and direct communication with the Foxtons team,
sharing updates on marketing, viewings, sales
progression, property maintenance and
management issues including online deposit
release and photo-uploads. Finally, underlying
all our interactions is our vast database of
transaction information collected over 15 years.
LONDON'S LETTINGS
MARKET
We've looked at six key market indicators for
the London lettings market in 2019, based on
Foxtons' proprietary database. Foxtons has a
vast database of rents paid, as well as listings
and activity levels, which can be analysed at
fine-grained geography. In 2019, Foxtons
registered over 200,000 potential tenants
equating to eleven new tenants for every
property listed in 2019. Coupled with low stock
levels, rents continued to rise across most parts
which boosted yields to 5.1%, their highest level
since 2013. Total returns stabilised at 3.2%.
UNDERSTANDING
LONDONERS
Our knowledge and understanding of what drives
people to choose a home - when, where and at
what price - is at the core of everything we do at
Foxtons. We've collected and analysed data on
buyers and tenants for over 15 years and the team
on the ground has been listening, discussing,
watching and sharing the journey. We've built up
an enormous bank of behavioural demographics.
From seasonality to pet-friendly and footloose to
open-minded, this graphic highlights some key
insights into lifestyle choices and priorities of
buyers and tenants in London.
The London Report | Summary 31