Foxtons hit by property slump – but rental market remains strong

Foxtons’ shiny glass-fronted offices have become symbolic of London’s gentrification over the last decade.

But the high profile estate agent has reported a slowdown in sales today as the capital’s recent property boom cools.

In its trading statement for the last three months, Foxtons said: “Q4 [quarter four] group turnover was down 12.1% versus the comparative period last year due to reduced property sales commission more than offsetting growth in lettings commission.”

Foxtons said it was unlikely to see a recovery in sales volumes until after the general election in May.  

Despite the dip in quarter 4, full year turnover was still up for the agency by 3.4%.

However, London’s strong rental market remained valuable for the estate agency who described the lettings business as delivering a “steady income stream”.

Foxtons said: “Residential lettings improved significantly during Q4 with growth in volumes leading to a 7.7% increase in lettings revenue versus the same quarter last year which exceeds the long term growth trend of 6%.

“Full year lettings revenue was 1.5% up on prior year. The lettings business accounts for approximately half of group revenue and continues to deliver a steady income stream.”

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