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Sunday 23 September 2018

Foxtons sales slide amid London housing slump

The group saw revenue drop nearly 15% to £24.5 million in the period.

Foxtons is having a torrid time (Dominic Lipinski/PA)
Foxtons is having a torrid time (Dominic Lipinski/PA)

By Ravender Sembhy, Press Association City Editor

Foxtons has seen first-quarter sales slide as the estate agent bears the brunt of a prolonged slump in the London property market.

The group saw revenue drop nearly 15% to £24.5 million in the period, with Foxtons bemoaning “very challenging” trading.

Sales revenues dropped from £11.1 million to £8.2 million while lettings revenues came in at £14.3 million, down from £15.5 million in the same period last year.

Mortgage revenue dipped from £2.1 million to £2 million.

The group said: “Conditions in the London property market remain very challenging with sales volumes lower than prior year.

“Foxtons entered 2018 with a lower sales pipeline compared to the same point last year and this resulted in lower levels of activity in the quarter.”

Performance in lettings was impacted by a “slow start” to January and the timing of Easter, it added.

In February, Foxtons reported a collapse in full-year profits as it pointed to sales activity in London plummeting to “near historic lows”.

Annual pre-tax profit tumbled 65% from £18.8 million to £6.5 million in 2017 while revenue slumped 11% to £117.6 million.

As well as property market slowdown in the capital, Foxtons is also grappling with the fallout from a stamp duty hike in 2016 on buy-to-let properties and second homes.

Press Association

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