Foxtons founder says market is close to bottom...

05 August 2009

2458 Reads
4 Comments

Written by rosalind renshaw

Jon Hunt, the Foxtons founder who sold it for £370m at the height of the housing boom in the spring of 2007, says the property slump is close to the bottom.

Hunt told the Financial Times that he is starting to see buying opportunities in some areas again. But he said the market would not bounce back and that it could take up to ten years for prices to recover fully.

He said London house prices have already dropped 20–25% and are unlikely to go down any further.

He added that he was not calling the bottom of the entire property market, because weaknesses could still emerge in some areas, but it was nevertheless clear that a turning point was being reached.

“I have been waiting for this all my life,” he told the paper. “At the moment it is the property man’s dream, having cash in the pocket and a distressed market.”

Hunt said he was not intending to return to estate agency but is planning a serviced apartments business in London.

Comments

- Mr Brightmove
Jon Hunt obviously knows something that we don't!
- 05 August 2009 14:59 PM
- Oedipus
All very well and I don't want to come across as negative but... what about when interest rates go back up, what about rising unemployment, what about the possibility of even more repos selling at lower than expected prices giving off the wrong signals to buyers and deterring sellers from selling. Happy to be slapped down and proved wrong but all the above on their own not a problem but together?
- 05 August 2009 14:12 PM
- not john
Thanks John.
- 05 August 2009 09:42 AM
- cg
John Hunt, or shall I say Sir John, is, in my eyes, not only an excellent hard working, former estate agent, he is a very smart businessman as well.
I had predicted that the market would I quote 'bottom out' by September and this looks as though this is very likely. Over the years I've read the times financial section quite regularly and never have I seen or read rather any city analyst get their predictions of the housing market correct.
So, we've been through the worst now, learnt some valuable lessons and, with caution, lets get back what we have lost and strive for real success over the next 4/5 years. GOOD LUCK!!
- 05 August 2009 09:00 AM