Foxtons recently released its sales figures for Q1.
Sales revenue declined by 35% to £10.7m, down from £16.4m in the same period last year.
As with most year on year stats, it is quite misleading as Q1 2025 was very strong as buyers brought forward purchases ahead of the stamp duty increases on 1st April 2025. To put this into perspective, Foxtons’ sales revenue was £9.5m in Q1 2024.
Nevertheless, there has been a significant fall in the number of sales.
So, which properties are selling and more importantly, which are selling for strong prices?
This is what Stuart Bailey, head of prime central London sales at Knight Frank, said two weeks ago:
“If it’s not the best of the best, or it needs work, or it needs doing up a bit its [value is] going to get knocked so that type of property that it’s in the middle is in no man’s land… While the best quality prime homes are still being sold for huge sums, “it’s the medium stuff that’s dragging the market down”. (Source – City AM)
Hence, it is essential that you focus on best in breed properties because these are the ones that you will be able to sell relatively easily at any stage and which will outperform in both strong and weak markets.
However, there is a trap that is very easy to fall into – just because something is shiny and new does NOT make it a best in breed property. Indeed, very often buying a newly refurbished property is an expensive mistake if it does not have the underlying fundamentals of a best in breed property.
I know many people run away screaming at the thought of dealing with builders. We have all heard of the horror stories! But, as with most things, the disasters can be easily avoided, if you have a good team working for you.
The reason I mention this is that there are opportunities right now to acquire best in breed properties at favourable prices simply because they are being ignored as they’re not newly refurbished.
The key is to have total market coverage in your target areas, so you find the best opportunities. Remain selective and patient but move swiftly when you do find a best in breed property at a favourable price.
The great irony of a buyers’ market is that buyers don’t buy. This is what makes it a great market for those who do their research, understand valuations and negotiate using tested and proven techniques.
If you would like to learn more, just let me know.
