Foxtons’ revenue slumps after stamp duty hike

Foxtons’ revenues plummeted by 25.3% in the first quarter against the backdrop of a subdued London residential market. However, the estate agent attributed the extent of the drop to a bumper first quarter in 2016 due to transactions being brought forward ahead of a stamp duty surcharge on buy-to-let investments and second homes. It said that its first quarter 2017 revenue of £28.7m was in line with the board’s expectations and was an 8% increase on the previous quarter. Its revenue was made up of £11.1m of property sales, £15.5m of lettings revenue and £2.1m of mortgage broking fees. Foxtons said it believed it would be able to generate high margins as a result of “high levels of centralisation allowing low-cost expansion of branches”, “an innovative application of technology” and a “powerful culture of sales and service through outstanding training and staff development”. It is implementing a strategy to target “higher-volume, higher-value residential property markets in London” and “expanding organically to maximise return on capital”. To send feedback, e-mail david.hatcher@egi.co.uk or tweet @hatcherdavid or @estatesgazette