Diary of an agent: Abigail Thurston and Peter Edwards

Abigail Thurston (AT) has been based in the Marylebone office of Knight Frank since late 2017. In this part of London rents start from £300 a week but, in some cases, reach £20,000 a week.

Peter Edwards (PE) has been with Knight Frank since 2004. He heads prime sales in central and northern England, Wales, and the north Thames and Chilterns areas.

While offers accepted in the sales market outside of London were up 184% in the week ending 25 July versus the five-year average, tenancies agreed in the same period in Knight Frank’s lettings business were -14%.

What level of demand are you seeing and what’s the main driver for it?

AT – We’re always busy here but not as busy as we’d normally be. This is because corporate relocations and international students are a large part of our market. Usually, some 80% of our deals between June and October involve international students – mostly European – and there are simply fewer of them about. Many students continue to study virtually, and many universities aren’t recommencing normal operations until January 2021.

PE – During the last three to four months we have seen massive demand. There’s been a surge of activity from buyers, many living in towns and cities that want to change their lifestyle after the pandemic. Lockdown has provided people with an opportunity to break out from the traditional commuter locations and consider areas they thought too remote before.

How has sentiment changed?

AT – Our landlords love students. Most arrive in time for September, where there’s then a mad rush to secure somewhere to live. Deals are typically agreed within one or two percent of the asking price and landlords don’t experience void periods. Landlords are therefore having to adapt.

PE – I’ve touched on buyers, but vendors are different in so much as Covid-19 has affected everyone in a different way. Some owners shelved plans for a move, and some are delaying until the current disruption ends. For others it has presented an opportunity, and some have sold their homes and achieved a double-digit premium.

Given that, what is happening with prices?

AT – In some cases asking rents have had to be adjusted down by a double-digit percentage but it depends on the individual property. While we haven’t seen the corporate relocations business come back, there is activity from young professionals that need to be back in the office. The higher end of the market is performing strongly. The recently-completed Regent’s Crescent, which has a 24-hour concierge, gym and swimming pool inside, has been very popular.

PE – It’s difficult to tell, but in popular areas with strong demand and a lack of supply - Cotswolds, the southern and South West regions for example - I’d say there has in some cases been an appreciation in value of a few percent.

What’s the biggest challenge you are facing?

AT – The demand is not there from students yet. It means there’s more supply on the market then there would normally be at this time of year. We saw a lot of registrations from prospective tenants during lockdown, but many are simply trying to get a money-off deal and haven’t committed.

PE - At the moment we are swamped with viewings, and for larger country houses and estates this process can be time consuming. That’s a nice problem to have, but the bigger challenges coming down the line include the threat of recession and any impact that has on sentiment. Towards the end of the year we will have the end of the Brexit transition period and the possibility of being governed by WTO rules, so that could have a negative effect.

What are your expectations for the remainder of the year?

AT – It really depends on what happens with the universities. If flights resume and people can travel here easily, we could see a busy autumn as students prepare for an academic restart this January.

PE – We’re facing a slightly more disjointed holiday period and won’t see the August shutdown that we traditionally experience in the country. Overall, I expect decent trading conditions to continue throughout the rest of this calendar year.