- Reuters / Peter Nicholls
LONDON – London-only estate agent Foxtons is feeling the effects of a slowdown in the capital’s property market.
Foxtons’ revenue for the quarter ending September 30 was £35.1 million, down from £37.5 million in the same period last year.
Total revenue for the year so far also fell, at £93.7 million, compared to £106.3 million last year.
However, the group said the results were “in line with expectations,” that cash flow remained strong and it had no debt.
Foxton’s shares jumped up 5.82% as of 08:14 BST (03:14 EST) on Wednesday.
“This was a resilient third quarter performance when set against the challenging conditions in the London property market. We have maintained our relentless focus on delivering a leading proposition for our customers and in our lettings business we are pleased with the reaction to our recent growth initiatives,” said CEO Nic Budden.
The UK property market has experienced a significant downturn over the past eighteen months, and profits at leading estate agents Foxtons and Countrywide fell sharply earlier in the year as fewer people looked to buy or rent properties.
Foxtons’ full year profit, announced in March, dropped by 54%, driven by London’s stagnant housing market, Brexit uncertainty and the hike in stamp duty in April 2016.
However, the number of lettings at Foxtons rose slightly this quarter compared to last year, growth which helped offset a tougher rental market. This was due in part to the success of several “growth initiatives,” the group said, although quarterly lettings were still down to £22.5 million, compared to £22.9 million last year.
Sales revenue in the quarter was also down from £12.3 million to £10.3 million, as the slowdown in buying from earlier in the year continued.