London estate agent Dexters continues growth on improved market share and Marsh & Parsons deal
Dexters, the largest London-only property specialist has continued year-on-year growth, suggesting the capital’s market remains vibrant despite restrictive supply and higher rates choking-off transactions.
The chartered surveyor and estate agent, announced a 23 per cent rise in revenue for the year ended September 30 2023, earning £181m.
Operating profit at the privately owned firm was also up nine per cent to £40.4m, thanks to strong sales and lettings activity.
The latter division was a particularly big performer for the firm, up 31 per cent from £80m to £105m. Revenue from lettings accounted for more than half (58 per cent) of of the firms total takings.
Meanwhile sales revenue increased from £57m to £64m.
The accounting period included the acquisition of rival London specialist Marsh & Parsons, the premium agent known for its eye catching adverts, which Dexters bought off property services group LSL in January 2023.
The move added 30 offices to Dexters’ portfolio of estate agencies, and took the number of property transactions it processed annually to more than 35,000.
Andy Shepherd, CEO of Dexters, said: “London remains a highly desirable place to live, study and work. London attracts both domestic and international buyers and tenants who choose to make capital their home. Our lettings division is highly successful and has expanded dramatically whilst significant sales deals across central London’s premium addresses has enabled our sales division to generate a strong increase in revenue for the financial year.”
The results suggest that demand for London property remains robust despite supply issues and fifteen years of ultra-low interest rates leading the average price of a house in the capital to double in the past decade.
Subsequent rising interest rates have also led prompted a drop in transactions, with sellers reluctant to take a hit on the value of their home, and more expensive mortgages leaving buyers struggling to to afford homes at the previous rate. Sales in the capital dropped by 42 per cent in the in the past year, according to the data firm Plumplot.
But some of Dexters’ gains were also down to it increasing its market share, thanks to particularly strong trading some of the capital’s more exclusive neighbourhoods like Mayfair, Chelsea and Marylebone.
The estate agent, whose chairman is former Sainsbury’s chief Lord King, has been one of the London property market‘s big success stories. Revenue has tended to grow at roughly 15 per cent for the past decade fuelled partly thanks to a number of savvy acquisitions, including Marsh and Parsons and and another London agent, Life Residential.