Market Analysis Winter 2010/11 Welcome


lower than in the comparable period in 2009, this comes as no surprise, nor does the increase in rental prices that we have witnessed over the course of the year. It is hard to see this imbalance being corrected until there is a revival of activity in the buy-to-let business.


Welcome to our review of the closing months of 2010 where from a monthly survey of franchisees we share the collective feedback from our offices.


The three months to November marked an unsettled period after what has generally been a year of recovery in the UK property market. The ongoing lack of mortgage finance availability, particularly for first-time buyers, was combined with nervousness following the government’s spending review in October and, as a result, we experienced a decline in new instructions. Nonetheless, our average stock levels in the first eleven months of the year were some 7% higher than in 2009.


The market for family houses remains extremely buoyant and, with an increasing proportion of such properties on our books,


we are pleased to see that our average asking prices rose at a time when the market itself was stagnating. There is still a shortage of stock and with pent- up demand growing we would expect this sector to remain active in 2011.


After many months of price rises and frenetic activity, prime property transactions saw some decline towards the end of the year with prices stabilising. Prices for flats, primarily a London domain, remained stagnant overall despite a shortage of two bedroom units.


The rentals market continues to favour landlords with demand considerably outstripping supply. The seasonal late summer rush, as young professionals seek to enter the market or trade up, continued well into the autumn. Given that the number of rental properties on our books was 45%


There is much debate concerning the timing and extent of interest rate rises in 2011, but the consensus is clearly that the cycle is now bottoming out. While this will have an impact on owners and buyers, particularly those keen to lock in fixed rate products in anticipation of this change, it is the availability of finance which remains a key determinant of the level of activity in the housing market in 2011. Until the banks feel comfortable to lend again, particularly at the bottom end of the market, volumes are likely to remain constrained.


Against this backdrop we will continue to grow our business cautiously in 2011 through the opening or acquisition of new franchises. Our position as a leader in the London market enables us to benefit from the concentration of UK activity which takes place there, while we also expect to be busy in our country house business, meeting the demand of families looking to leave the capital in search of extra space.


Dominic Agace CEO M Winkworth PLC


2 Market Analysis Winter 2010/11


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