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| Walthamstow to rival Pimlico as property hotspot, Foxtons says | |
| (35 minutes later) | |
| Foxtons, the London-based estate agency, has said it expects Walthamstow to become as important for its business as Pimlico, as it reported a slowdown in property transactions last year in the centre of the capital. | Foxtons, the London-based estate agency, has said it expects Walthamstow to become as important for its business as Pimlico, as it reported a slowdown in property transactions last year in the centre of the capital. |
| The chief executive, Nic Budden, said despite lower property prices in the suburb at the north-east end of the Victoria line, an increase in house sales meant there was £1.6m more potential revenue than in its more salubrious rival at the other end of the London Underground line. | The chief executive, Nic Budden, said despite lower property prices in the suburb at the north-east end of the Victoria line, an increase in house sales meant there was £1.6m more potential revenue than in its more salubrious rival at the other end of the London Underground line. |
| Budden said: “This means that, with a similar market share, the Walthamstow market will be as valuable to us as Pimlico is today in time.” | Budden said: “This means that, with a similar market share, the Walthamstow market will be as valuable to us as Pimlico is today in time.” |
| Last year, 514 properties were sold in Pimlico and Westminster with an average price of £1.2m, making the market worth £618m, or a potential £15.4m in fees at 2.5%, Buddden said. In Walthamstow, where Foxtons opened a branch in 2015, 1,722 properties changed hands for an average of £395,000, amounting to £680m in sales and £17m in potential fees. | Last year, 514 properties were sold in Pimlico and Westminster with an average price of £1.2m, making the market worth £618m, or a potential £15.4m in fees at 2.5%, Buddden said. In Walthamstow, where Foxtons opened a branch in 2015, 1,722 properties changed hands for an average of £395,000, amounting to £680m in sales and £17m in potential fees. |
| Walthamstow, whose name partly inspired the fictitious Walford in EastEnders, is one of London’s gentrifying hotspots. Long seen as up and coming due to its fast links to the City and the West End and the leafy “village” at its heart, the area has attracted families priced out of Hackney and Islington. | Walthamstow, whose name partly inspired the fictitious Walford in EastEnders, is one of London’s gentrifying hotspots. Long seen as up and coming due to its fast links to the City and the West End and the leafy “village” at its heart, the area has attracted families priced out of Hackney and Islington. |
| Last year the number of property millionaires in Waltham Forest, the London borough encompassing Walthamstow and Chingford, grew 56% as the number of homes worth £1m or more hit 1,330. Foxtons’ website shows a £1.35m double-fronted, four-bedroom house that is under offer and located in Walthamstow village. | Last year the number of property millionaires in Waltham Forest, the London borough encompassing Walthamstow and Chingford, grew 56% as the number of homes worth £1m or more hit 1,330. Foxtons’ website shows a £1.35m double-fronted, four-bedroom house that is under offer and located in Walthamstow village. |
| Budden said he used the example of Walthamstow to illustrate the growth occurring around London’s periphery as buyers look for areas with attractive, affordable property. | Budden said he used the example of Walthamstow to illustrate the growth occurring around London’s periphery as buyers look for areas with attractive, affordable property. |
| He added: “Outer London we see as far more natural markets. People buying and selling houses for £200,000 or £300,000 in Walthamstow are far less impacted by the global economic scene.” | He added: “Outer London we see as far more natural markets. People buying and selling houses for £200,000 or £300,000 in Walthamstow are far less impacted by the global economic scene.” |
| 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. | 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. |
| Foxtons’ average sale price last year was £550,000, which is up 1%. A third of its sales were for less than £400,000. | Foxtons’ average sale price last year was £550,000, which is up 1%. A third of its sales were for less than £400,000. |
| Since listing its shares on the stock market in 2013, Foxtons has opened 21 branches, mainly in suburbs such as Ruislip, Croydon and Tooting. It will have 63 branches by the end of this spring. | Since listing its shares on the stock market in 2013, Foxtons has opened 21 branches, mainly in suburbs such as Ruislip, Croydon and Tooting. It will have 63 branches by the end of this spring. |
| Despite its association with desirable central London neighbourhoods, Foxtons was founded by Jon Hunt in Notting Hill in 1981 when it was far removed from the affluence evident in Richard Curtis’s eponymous 1999 film. | Despite its association with desirable central London neighbourhoods, Foxtons was founded by Jon Hunt in Notting Hill in 1981 when it was far removed from the affluence evident in Richard Curtis’s eponymous 1999 film. |
| 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 and further economic stability.” | 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 and further economic stability.” |
| Fears are increasing that London’s high-end property market is heading for a crash caused by rapid price rises and 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. | Fears are increasing that London’s high-end property market is heading for a crash caused by rapid price rises and 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. | 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. | 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.” |