Foxtons has said that it is still feeling the effects of the mini budget as the listed estate agent is forced to reduce its sales pipeline for the year.
The London-listed group warned the effects will be felt for the “majority” of 2023, after October’s mini budget led to a sharp drop in house buying activity, due to increased borrowing costs.
Foxtons said that mortgage rates have started to ”reduce” in recent weeks and buyer activity is picking up, which could lead to a “favourable sales market in the latter part of the year”.
It comes as the group posted revenues of £140.3m for 2022, up 11 per cent from £126.5m the prior year.
Foxtons, which yesterday revealed it had snapped up rival Atkinson McLeod for £7.4m, also had pre-tax profits grow 11.5 per cent for the year to £11.9m compared to £5.6m in 2021.
For the year so far, the estate agent said that trading in January and February is in line with expectations and predicts the lettings market dynamic of “low volumes and high rental prices” to continue into 2023.
Guy Gittins, group chief executive of Foxtons said: “With the support of our talented workforce, I am certain we have the collective determination to put Foxtons on top where it belongs, and with a refocused set of strategic priorities, have a medium-term growth ambition to deliver £25m to £30m of operating profit.
“Whilst the macroeconomic backdrop remains uncertain, our resilient lettings and financial services businesses, coupled with the operational improvements we are delivering at pace, should mitigate most of the impact of a potentially lower volume sales market.”