…By Henry George for TDPel Media.
Despite the ongoing mortgage market crisis, Dexters, one of London’s leading estate agency chains, expressed its continued confidence in the London property market.
The company, which operates 150 offices in the capital and owns the Marsh & Parson brand, reported a 3% increase in revenue to £147.1 million in 2022, with profits slightly down at £37 million.
Strength in London Lettings Sector and Resilience in Sales Market
According to Dexters’ Chief Executive, Andy Shepherd, the London lettings sector is experiencing strength and high levels of tenant demand following the reopening of the economy after the Covid-19 pandemic.
This positive trend is reflected in the company’s latest figures.
Additionally, the sales market has remained resilient, benefiting from a strong performance in 2021, supported by the Government’s temporary stamp duty relief measures.
Revenue Breakdown and Other Advisory Services
More than half of Dexters’ revenue was generated through lettings and property management, totaling £56.5 million.
Sales and new homes activities contributed £11.1 million, while other advisory services accounted for a portion of the revenue as well.
Mortgage Rates on the Rise
In the wider mortgage market, average rates continued to increase, albeit at a slower pace.
According to analysts Moneyfacts, the average two-year fixed residential mortgage rate stood at 6.26% today, up from 6.23% yesterday.
The average five-year fixed residential mortgage rate today was 5.87%, up from 5.86%.
Grainger’s High Occupancy Rate Highlights Rental Supply Shortage
Grainger, a build-to-rent landlord, announced that its occupancy rate had reached a new high of nearly 99%.
This serves as another indication of the shortage of rental properties in the market.
The landlord reported that its properties were 98.7% occupied, which represents a further increase from already record levels earlier in the year.
Grainger also noted a rental growth of 7.1% for the year to date.