A turbulent autumn
It is safe to say the past few months have been eventful for London’s property market. As you might expect, market sentiment has been heavily influenced by the effects of the mini-budget and resulting Autumn Statement. However, as a long-established estate agent we know all too well that this is not the be-all-and-end-all for sales and lettings growth. In our final update for the year, we summarise what we’re experiencing first hand in London’s communities and where we see the property market heading in the coming months.
Market-beating performance in a challenging market
We’re pleased to report that Marsh & Parsons continued to achieve great results for our clients despite the economic backdrop. Our lettings team outperformed the wider London market by over 50%¹ in terms of lets agreed, and our interlinked network of offices was a key driver for this success – we were able to utilise our network to offer more options to tenants as they became more flexible on location and property type.
Demand for quality rental property continued throughout Q4, with rising mortgage rates being a key driver for more renters entering the market. Our average term length for tenancies agreed this year has been 15% longer than in 2021², as tenants look to delay their next move as much as possible amid supply shortages.
Our Sales team’s proactive approach and hyper-localised guide pricing continued to serve our vendors well in a market shadowed with uncertainty. An example of the team’s effectiveness was the sale of a prestigious house in Roehampton after the vendor had little success with another high-profile agent. After a few weeks of extensive marketing, including a range of national press coverage, our East Sheen team managed to quickly source the buyers and exchange within days of selling. The vendor was delighted with the result, and we ensured the happy purchasers got to move in before Christmas.
Sustained demand as rates settle
Our Sales team has seen sustained buyer demand despite widespread caution due to rising mortgage rates. In Central London, the weakening pound saw some sellers in prime locations enjoying increased international interest as overseas investors looked to capitalise on favourable exchange rates.
Though many buyers have opted to wait until rates settle, we still have eight buyers for every property, leaving a pool of qualified applicants with pre-approved mortgages searching for their dream home as we head into the New Year. Encouraged by this demand, we have seen sellers slowly returning to the market with optimism. This has resulted in only a minor drop in average asking prices compared to pandemic levels³ – a stark contrast to media portrayal.
Our lettings team has continued to experience peak numbers of quality tenants in the market as more people return to the city. As a result, we’ve seen stock levels slowly increase to meet demand as landlords regain confidence. We have also seen some property owners choose to let out their property instead of selling in favour of a strong rental market.
Our Corporate & Relocations team continues to experience year-on-year growth, supporting the world’s leading companies with employees relocating to London for work. During the last quarter, landlords enjoyed an average tenancy length of 31 months, illustrating the maintained long-term commitment from international businesses. With one of the largest corporate departments in London, our landlords can expect access to some of the highest quality, company-backed tenants in the city.
Seasonal trends set to continue
As economic-related panic begins to calm, we’re expecting traditional seasonal trends to become a key market driver once more. By listing your property with us now, you can get ahead of the competition before more homeowners enter the market in January. If you’re looking for an estate agent that consistently delivers excellent results, even in a difficult market, Marsh & Parsons would be happy to help.
If you’re ready to sell your property, click here to book your no-obligation valuation.
If you are looking to let your property, click here to book your no-obligation valuation.
[1] Marsh & Parsons internal data vs. LonRes data, November 2022
[2] Marsh & Parsons internal data, December 2022
[3] Rightmove data, December 2022
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