Slow residential property markets in London in first half

Foxtons Group plc, London’s leading estate agent, announced last friday its financial results for the half year ended 30 June 2016.

Revenues are down and expenses are up, profit before tax collapses over the six month period to just £10.5 million, compared with £18.1 million last year.

Five new branches opened during the first half in line with their organic, self-funded expansion strategy taking the total number of Foxtons branches to 63. Two further branches on track to open during the second half.

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

“Uncertainty surrounding the EU referendum led to slow residential property markets in London during the first half of the year. Although we achieved a Q1 revenue record due to a surge in property sales transactions in March ahead of the introduction of the stamp duty premium for buy to let properties and second homes, Q2 experienced a sharp contraction and we believe that the overall level of property sales transactions made in London during the first half of the year is substantially down on last year. The result of the referendum to leave Europe is likely to lead to a prolonged period of further uncertainty and we do not expect London residential property sales markets to show signs of recovery before the end of the year.

“Despite the current market uncertainty, Foxtons is well positioned as London’s most recognised brand in the property sector with a strong balance sheet and significant cash generation. As we enter into the second half of the year, we have several initiatives underway to promote the growth of our lettings business and our less mature branches remain focussed on delivering market share gains. We are reviewing the pace of our branch openings over the short-term and may slow the pace of expansion in response to market conditions. However, longer term, whilst recent political events have produced uncertainty for buyers and sellers, we expect London to remain a highly attractive property market for sales and lettings and we remain committed to our goal to reach 100 branches across greater London”.

To read Foxtons  half year financial results in full click here

The share price stood at 110p on Friday 29 July 2016

 

 

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

BREAKING PROPERTY NEWS – 28/06/2022

Daily bite-sized proptech and property news in partnership with Proptech-X.   Renting to Students: TDS Poll Confirms Common Issues and Reasons for Disputes in Student Lets PRESS RELEASE: A recent poll by the Tenancy Deposit Scheme (TDS) asked agents and landlords about their experiences when renting to students. The TDS poll discovered common disagreements, the top causes of…
Read More
Budworth Hardcastle
Breaking News

Eddisons snap up Budworth Hardcastle for £1.8m

East Midlands based (in two separate locations) commercial property firm Budworth Hardcastle founded in the 1990’s with 18 staff members have been acquired by Eddisons. Budworth Hardcastle is a privately owned multi-disciplinary Chartered Surveying practice which is Regulated by The Royal Institution of Chartered Surveyors – Formerly Marriott Hardcastle and Budworth Brown prior to merging.…
Read More
Estate Agent Talk

How to Safely use Scaffolding Around the Home

If you have any work to be done around the outside of your home at a height you can’t easily reach, your first answer is to go for a ladder. But though they don’t look like a hazard, ladders are in fact very dangerous pieces of equipment responsible for many injuries that result in minor…
Read More
Breaking News

BREAKING PROPERTY NEWS – 27/06/2022

Daily bite-sized proptech and property news in partnership with Proptech-X.   On The Market: Housing market starts to rebalance as remarkable buyer and seller confidence prevails PRESS RELEASE: Our latest Property Sentiment Index shows confidence remained strong among serious buyers and sellers as supply and demand in the market has begun to show signs of rebalancing. –…
Read More
Breaking News

Johnny Cash’s California Home

Johnny Cash often sang about the hills and flowers and wide-open spaces, and he lived it too. In 1961, Johnny built a 4,500-square-foot home in rural Casitas Springs, California as his quiet place to escape from the rock ‘n roll lifestyle. A place he and his wife, Vivian, and their three daughters could enjoy family…
Read More
Estate Agent Talk

How do Estate Agents Need to Adapt Their Methods to Sell to Younger Generations?

The average real estate agent is 49 years old, while the median age of a prospective first-time homebuyer is 33. That’s a significant gap, and it highlights how a lot of agents may be out of touch with the best ways to connect with today’s property purchasers. The process of selling houses, apartments, and other…
Read More