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Walthamstow beats Pimlico as property hotspot, Foxtons says | Walthamstow beats Pimlico as property hotspot, Foxtons says |
(about 2 hours later) | |
The London-based estate agency Foxtons has said it expects Walthamstow to become more important for its business than Pimlico, as it reported a slowdown in property transactions last year in the centre of the capital. | |
The chief executive, Nic Budden, said that despite lower property prices in the east London suburb, higher numbers of house sales meant there was £1.6m more potential revenue than in its more salubrious rival at the other end of the Victoria line. | |
Foxtons, known for aggressive sales techniques and its fleet of liveried Mini cars, has expanded outwards from its central London base to tap into rising prices and higher transaction volumes as London homebuyers are pushed out to the suburbs and commuter belt. | |
Budden said outer zones were less affected by political and economic uncertainty than central London, where the market is driven by wealthy buyers and investors, often from overseas. | Budden said outer zones were less affected by political and economic uncertainty than central London, where the market is driven by wealthy buyers and investors, often from overseas. |
Since listing its shares on the stock market in 2013, Foxtons has opened branches in suburbs such as Walthamstow and Tooting. | Since listing its shares on the stock market in 2013, Foxtons has opened branches in suburbs such as Walthamstow and Tooting. |
Related: Is Foxtons the estate agent London deserves? | Andy Beckett | Related: Is Foxtons the estate agent London deserves? | Andy Beckett |
Foxtons’ pre-tax profit for the year ended 31 December fell 2.6% to £41m as central London profits declined and the company spent money opening branches in outer London. Foxtons said the number of house sales it carried out in central London declined because of high prices and increases in stamp duty. | Foxtons’ pre-tax profit for the year ended 31 December fell 2.6% to £41m as central London profits declined and the company spent money opening branches in outer London. Foxtons said the number of house sales it carried out in central London declined because of high prices and increases in stamp duty. |
Budden said: “In central London, transactions fell particularly sharply as a result of stamp duty changes ... and high levels of price [inflation]. The central market is going to stay at pretty subdued levels going forward until there is some conclusion on Brexit.” | Budden said: “In central London, transactions fell particularly sharply as a result of stamp duty changes ... and high levels of price [inflation]. The central market is going to stay at pretty subdued levels going forward until there is some conclusion on Brexit.” |
Fears are increasing that London’s high-end property market is heading for a crash caused by rapid price rises, a glut of newly built expensive flats in the centre of the capital. This has combined with slackening demand from wealthy foreign investors, due to China’s economic slowdown and tumbling oil and commodity prices. | |
Capital & Counties, the luxury flatbuilder, said last month that demand was falling because of excess supply and a new stamp duty surcharge on second homes. | |
Foxtons said it was too early to say how much a vote to leave the EU would affect its business. City figures have warned that firms could move operations out of London, Europe’s financial centre, if Britain left the EU. | |
Listing potential risks to its business, Foxtons said: “The market may also be affected by any reduction in London’s standing as a major financial city caused by a decision by the UK to leave the EU.” | Listing potential risks to its business, Foxtons said: “The market may also be affected by any reduction in London’s standing as a major financial city caused by a decision by the UK to leave the EU.” |