Foxtons revenues fall again: Estate agent blames challenging London market

 
Caitlin Morrison
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Foxtons has been struggling in the face of a softer property market (Source: Getty)

Foxtons reported another dip in revenue in the third quarter of the year, continuing its downward trajectory as it faces a "challenging" London property market.

The figures

Total revenue in the three months to 30 September was £35.1m, down from £37.5m in the same period of last year. Revenue for the first nine months of the year was £93.7m, compared with £106.3m reported last year.

The estate agent said sales revenue in the third quarter fell to £10.3m from £12.3m in 2016, while revenues in its mortgage business, Alexander Hall, were flat at £2.3m.

Lettings revenue dipped to £22.5m from £22.9m in the third quarter of last year.

Shares in the group were up 2.7 per cent in early trading.

Why it's interesting

Foxtons has been struggling to deal with tumbling revenues and profits for months now. Previously, the company has blamed political uncertainty in the run-up to the General Election, and also called on investors to view results from the perspective that trading in early 2016 was boosted by a spike in housing transactions ahead of stamp duty rule changes.

Today, the company pointed to a difficult London market. Yesterday, research showed London was the only English region where house prices fell in August.

What Foxtons said

"This was a resilient third quarter performance when set against the challenging conditions in the London property market," said chief executive Nic Budden.

"We have maintained our relentless focus on delivering a leading proposition for our customers and in our lettings business we are pleased with the reaction to our recent growth initiatives."

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