Foxtons Q3 sales fall but London residential market picking up
Estate agent Foxtons reported a decline in third-quarter revenue on Thursday but said the London residential market has begun to pick up.
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In the quarter to the end of September, group revenue fell 10% on the same period a year ago to £28.5m, and was 18% lower over the first nine months of the year, at £68.9m.
Lettings revenue declined 8% to £19.5m. Foxtons said that while volumes in London returned to close to pre-pandemic levels over the summer months, average revenue per tenancy fell as there were fewer high value short-term lets and a significant drop in overseas student tenants and corporate relocations.
Revenue from the sales business declined 18% to £6.9m, with Foxtons pointing to depressed levels of exchanges, a hangover from the spring lockdown.
"However, sales activity, including the number of instructions and number of offers accepted, has been significantly higher than the same period last year, driven by pent-up demand post lockdown and Stamp Duty relief," it said. "This started to convert into revenues in September, which were up 9% on prior year."
Revenues in the company’s mortgage business were up 4% in the third quarter to £2.2m amid increased levels of re-mortgage activity.
Chief executive officer Nic Budden said: "Foxtons has made good progress in the third quarter, during which we were able to capitalise on increased levels of market activity, driven by the decision to build back capacity soon after the lockdown ended. We have successfully re-built the sales commission pipeline to its highest level in three years, delivered a resilient lettings performance and progressed our lettings book acquisition strategy.
"Although the London residential market has gained momentum, we remain cautious as economic uncertainty causes more sales transactions to fall through and is putting downward pressure on rents."