Not long ago a London home seeker would be embarrassed by their miserable budget as a swanky often glib estate agent would show them around a London Home. Dismissing the rats and foxes that run around the ragged streets as ‘ London life ‘ the underground rumbling beneath their kitchen as ‘ good location ‘ and the absence of any car parking as a ‘ climate change contribution ‘ the market boomed.
This phenomena was none more typified than Foxtons whose smart founder established and sold his Empire in a sale of the century. The brand was recognised by good looking executives driving green minis across town matching their logo and the green Perrier water bottles ever filled that stacked in the refrigerated units in the main reception of their state of art offices.
The Foxtons formula was a winner yet today despite 400 year low interest rates their offices are closed and the 1100 staff furloughed . The market for homes has frozen though it was beginning to do so before Covid19 as prices slid from their 2014 highs by up to 25%. Is this the end of residential sales as we know it ?
I don’t think so for not only do the 400 year low interest rates look set to remain but the lack of housing persists as a thorn in the side of the Government. Foxtons meantime are looking to their shareholders for £22m to prop up the Company and whilst I don’t see the demise of London property I do see the end of estate agents rolling sales out like sausages. The internet is a perfect finding place and the owners are more than capable of selling their homes. The plethora of information and comparable pricing has relegated the Estate Agent and only those that offer something unique will survive the future.
Foxtons is not a share to buy, the mini remains a great car and the Perrier water will find a home (pun intended).
qbitblogger 