Foxtons warns of sales slowdown as home buyers await General Election outcome

London estate agency Foxtons warned that the General Election had put the brake on sales as prospective homebuyers await the outcome of next week’s polls before making plans. 

 

The company, famous for its fleet of Green Mini Coopers, reported revenues of £33.1m in the three months to 31 March, down 3.1 per cent on the same period last year, when the sales market was at its strongest since 2007.

 

Sales commissions dropped by 11.9 per cent year-on-year to £15.5m but its lettings business had revenue up 5.4 per cent to £15.9m. 

 

Adjusted earnings were £8.3m, resulting in a margin of 25.2 per cent compared with 31.8 per cent last year. 

 

Chief executive, Nic Budden, said: “Property sales transactions in London have remained relatively flat since the end of last year with many potential buyers and sellers apparently delaying their decisions until the outcome of the General Election is known.”

 

His comments follow rival estate group Countrywide also warned this week that uncertainty over the outcome of the election would hit transaction volumes in the first half.

 

Budden said despite the recent slowdown the long-term factors of the London market “remain sound”, with the group still on track to open five to 10 branches each year.

 

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