Blames London housing market slowdown
UK estate agents Foxtons have posted a worse-than-expected 65 per cent fall in profit blaming its sales plunging to “historic lows” in London’s housing market.
While prices in the Capital have remained high, the number of transactions has dropped significantly following a surge in buying activity in previous years.
Foxtons, which operates almost entirely in London, has therefore recorded a 23 per cent drop in revenue.The group’s pre-tax profits also plunged to £6.5m ($9.04m) last year.
Revenues at its lettings business fell only 3 percent last year but government plans to ban fees charged to tenants is likely to hit its business model.
“Though at this stage it is unclear exactly what the legislation will look like, we are exploring ways to mitigate the impact,” said Chief Executive Nic Budden.