Falling London house prices hit Foxtons’ revenue
London estate agent Foxtons reported falling sales revenue in the third quarter as house prices in the capital took a hit.
Sales revenue slumped 15 per cent to £8.4m, down from £9.9m as ongoing political uncertainty led to lower volumes, falling prices and fewer high value sales.
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“Ongoing political uncertainty continued to weigh on volumes and prices in the London residential sales market,” Foxtons said in a statement today.
“We believe this to be a resilient performance given the market backdrop,” it added.
Group revenue for the third quarter was down seven per cent to £32.5m from £35.1m in the previous year.
Foxtons said it grew its share of the lettings market after it made improvements to its rental offering and decided not to increase charges to landlords following the introduction of the tenant fee ban this year.
However, the lettings business reported lower revenue in the third quarter, down four per cent to £22.1m, due to tenant fee regulation changes in June.
Revenue growth in Alexander Hall – Foxtons’ mortgage business – was flat year-on-year at £2.1m in the third quarter.
Foxtons chief executive Nic Budden said: “Overall, this was a resilient performance set against the London sales market which continues to deteriorate and the impact of the tenant fee ban on our lettings business.
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“We are encouraged by landlords’ reaction to our improved lettings offer and are confident we can continue to gain share in the London lettings market.
“We continue to manage costs tightly to ensure the business is well-placed to withstand this prolonged market downturn and are confident that this, coupled with our improved overall offer, positions us well for the future”.
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