Advertisement

  1. ITV Report

Profits plunge at Foxtons as London housing market stalls

Estate agency Foxtons has seen profits dive as sales activity in London plummets to near historic lows.

The group said full-year pre-tax profit tumbled 65% from £18.8 million to £6.5 million in 2017, while revenue slumped 11% to £117.6 million.

We are pleased to have delivered a performance in line with market expectations.

However, sales activity in the London property market is near historic lows and this had a significant impact on our overall performance in 2017. The group's sales division saw revenue drop 23% to £42.6 million, which it said was a result of "continued market weakness causing lower transaction volumes.

– Nic Budden, Foxtons

As well as property market slowdown in the capital, Foxtons is also grappling with the fallout from a stamp duty hike in 2016 on buy-to-let properties and second homes.

Looking ahead, we expect trading conditions to remain challenging during 2018, and our current sales pipeline is below where it was this time last year.

– Nic Budden, Foxtons