Foxtons property sales slump | Daily Mail Online

London estate agent Foxtons has seen house sales fall as higher mortgage rates continue to hit the property market.

Third quarter sales revenue fell 17 percent to £9.9 million, while market volumes fell 23 percent.

But revenues were largely flat at £43.9 million in the three months to September 30, compared with a robust comparison last year, while sales rose 5 per cent in the first nine months of 2023 from £114.8 million.

Despite home sales falling, Foxtons said it continued to deliver on its operational turnaround plan and outperformed the market.

Guy Gittins, CEO of Foxtons, said the increase in market share in the group’s rental, sales and financial services has enabled it to grow sales this year “despite reduced transaction volumes in the sales market, as a result of the higher interest rate environment’.

House prices in Britain have stagnated as demand is squeezed by weaker mortgage availability and affordability.

According to mortgage lender Halifax, a typical London home has fallen by £26,514, or 4.8 per cent, in the past 12 months.

But Gittins added: “We have delivered a third consecutive quarter of market outperformance as operational upgrades take effect.

“Our investment in fee earners, training, data and brand is paying off faster than I expected and is now delivering material benefits to our competitiveness and market positioning.”

Foxtons also expects a small net cash position at December 31, ‘assuming no further acquisitions occur before the end of the year’.

Foxtons shares fell 3.16 percent to 36.80p in afternoon trading on Thursday.

Analysts at Peel Hunt, which maintained a ‘hold’ rating with a 40p price target, said: ‘The group continues to execute on its strategy, but continued earnings growth is likely to depend on a recovery in the sales market, which appears to be somewhat ‘. far away at this point.”

In July, rising rents offset a slump in house sales at Foxtons. The estate agency made a profit of £6.1 million for the first six months of the year, an increase of 41 per cent on the same period in 2022.

The group said demand among renters looking for homes to rent is exceeding supply, causing rents to rise.