Foxtons hit by fall in profits as 'unprecedented' uncertainty hits property market

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London-focused estate agent Foxtons has been hit by a fall in revenues and profits amid “unprecedented” uncertainty for the property market.

The estate agent again flagged the EU referendum as a factor in slowing the London property market, adding that demand has also weakened in conjunction with “inflationary pressures on household incomes”.

The group said revenue fell 15 per cent to £58.5 million in the six months to June 30, with pre-tax profit plummeting 64 per cent from £10.5 million to £3.8 million.

Sales revenue crashed 29 per cent to £22.2 million in the period, with Foxtons saying the performance was set against a surge in the first quarter last year, when transactions were brought forward ahead of the stamp duty surcharge on buy-to-let investments and second homes.

Boss Nic Budden said: “Our performance has been resilient in the context of a London property market that has been further impacted by unprecedented economic and political uncertainty.

“We have several new and exciting initiatives under way designed to build our lettings portfolio and strengthen our customer offer further.

“While conditions remain challenging, we are confident that these initiatives, together with the strength of our network, our balance sheet and our brand, will support long-term growth for our shareholders.”

Mr Budden said in March that the London market was “severely impacted” by the Brexit vote, which he claimed had led to a “substantial reduction in property sales transactions”.

Lettings revenues were down 2 per cent to £32.1 million and mortgage broking fees came in at £4.2 million, down 9 per cent.

The numbers come after official figures showed annual house price growth cooled down further in May.

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