Profits fall at Foxtons following downturn in London property market

July 27, 2017

Foxtons Group PLC today announced interim results for the half year ended 30 JUNE 2017.

Lettings revenue £32.1m down 2% versus prior year; Volumes up 1% with several growth initiatives underway, offset by fall in rental rates. Remains a resilient, recurring revenue stream.

Sales revenue £22.2m down 29% in the half; mainly driven by the Q1 surge in the prior year. Q2 sales revenue down 3% overall versus prior year and impacted by increased political uncertainty towards the end of the period.

Commenting on today’s statement, Nic Budden, Chief Executive Officer said:

“Our performance has been resilient in the context of a London property market that has been further impacted by unprecedented economic and political uncertainty. Whilst sales commissions in the second quarter as a whole were down 3% versus prior year, sales exchanges and our under offer pipeline weakened through June and the early part of July. The growth in our lettings portfolio was encouraging, up 2% to c.19,800 tenancies and now accounts for 55% of group revenues, delivering a steady and recurring income stream.

 “During the last six months we have maintained our relentless focus on delivering a market leading service for our customers and that remains our priority. We recently launched MyFoxtons for tenants and buyers, a sophisticated online portal to complement the equivalent for landlords and vendors launched last year, and early feedback has been encouraging. We have several new and exciting initiatives underway designed to build our lettings portfolio and strengthen our customer offer further. While conditions remain challenging, we are confident that these initiatives, together with the strength of our network, our balance sheet and our brand will support long term growth for our shareholders.”

Read  Foxtons interim results for the half year ended 30 JUNE 2017 in full click here.

 

Allen Walkey

Highly experienced businessman with a successful career in property sales and investment both in the UK and abroad. Now a freelance writer and blogger for the property and Investment Industry, keeping readers up-to-date with changes and events in a rapidly changing world.

You May Also Enjoy

Breaking News

What landlords need to know about the upcoming Renters Rights Bill

The government’s long-awaited Renters Rights Bill is one of the most significant overhauls of the private rental sector in decades. While it has not yet received royal assent, the legislation is expected to come into effect late this year, or early in 2026. With the bill moving closer to becoming law, Steven Bond, managing director…
Read More →
Letting Agent Talk

Buy-to-let investors can benefit from 12% price discounts for unmodernised homes

Research by London lettings and estate agent, Benham and Reeves, shows that buy-to-let investors can snap up unmodernised properties for as much as -12.3% below the average market house price, providing a stellar opportunity for strong and relatively fast investment returns. Benham and Reeves analysed house price data for 36,175 unmodernised properties currently listed for…
Read More →
Estate Agent Talk

UK estate agents facing heightened competition as agency numbers up 24%

The latest research by eXp UK, the platform for personal estate agents and estate agency businesses, has revealed how competition has grown within the UK estate agency sector, with the estimated number of estate agency businesses increasing by 24% since 2017, with this figure expected to keep climbing over the coming years. eXp UK analysed…
Read More →
Breaking News

Homeward Bound

Homeward bound: 74 per cent house price growth over twenty years and affordability barriers price Brits out of their childhood hometowns House prices across the UK have increased by an average of 74 per cent, over the last 20 years, from £113,900 to £268,200 52 per cent of Brits have said they would consider a…
Read More →
Breaking News

Growth in mortgage and rental spending slows for third consecutive month in May

Consumer spending on rent and mortgages grew 4.6 per cent year-on-year in May, slower than the 5.2 per cent recorded in April Spending on utilities rose 4.4 per cent, likely as a result of April’s energy price cap changes Seven in 10 of those remortgaging in 2025 anticipate higher costs, estimating repayments will rise by…
Read More →
Breaking News

£39bn boost for affordable homes programme

Following today’s Spending Review where affordable housing has been allocated £39bn over the next 10 years, here are some thoughts from the Industry. Alex Slater, Rightmove’s housebuilding expert: “Today’s news is a really positive boost for the housebuilding industry and a step in the right direction. There aren’t enough affordable homes, so we welcome any…
Read More →