London sales slump hits Foxtons
Foxtons has reported a 29% fall in its pretax profit as the limp residential sales market in London continues.
The firm recorded a £3.2m statutory loss before tax for the six months ended 30 June 2019, down from £2.5m in the first half of 2018.
Revenue from its sales division fell by 10% to £15.4m, compared with £17.2m for the first six months of 2018. Foxtons said flat volumes were offset by lower house prices and the sale of a higher proportion of lower-value properties compared to the same period last year led to a decrease in average revenue per unit to £12,934 (2018: £14,450).
Foxtons has reported a 29% fall in its pretax profit as the limp residential sales market in London continues.
The firm recorded a £3.2m statutory loss before tax for the six months ended 30 June 2019, down from £2.5m in the first half of 2018.
Revenue from its sales division fell by 10% to £15.4m, compared with £17.2m for the first six months of 2018. Foxtons said flat volumes were offset by lower house prices and the sale of a higher proportion of lower-value properties compared to the same period last year led to a decrease in average revenue per unit to £12,934 (2018: £14,450).
The company’s lettings arm, which accounts for 62% of Foxtons’ revenue was flat, recording revenue of £31.7m for the first six months of 2019. This included a one-month period without tenant fees owing to the tenant fee ban which began on 1 June.
Foxtons said it expected the ban’s impact on its group revenue to be £3m in 2019, and £4.5m on a full-year basis.
Revenues at Foxtons’ Alexander Hall mortgage business were down 3% to £4m, reflecting a decline in new mortgages.
Nic Budden, chief executive at Foxtons, said: “Looking ahead, we expect conditions to remain challenging and have effectively positioned the business to reflect this. In lettings, we expect our ongoing commitment to landlords in light of the tenant fee ban to improve further our proposition and we are confident this will continue to drive market share.
“In the longer term, our strong balance sheet and leading market position in London will allow us to capitalise on any recovery, in what remains one of the world’s most desirable cities and dynamic property markets.”
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