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Foxtons' shares took a tumble yesterday after the estate agent posted its fourth quarter results and revealed that the property market remained "subdued".

The results showed that revenues fell 12% in the three months to the end of December as "the residential property sales market continues to be subdued in central London, with volumes consistent with those seen in late 2012 and early 2013".

Sales commission fell by 25.7% during the quarter although full-year sales commission rose 3.6% to £70m.

Foxtons' lettings business fared better, rising 7.7% year-on-year, compared to a long-term growth trend of 6%. The lettings business now makes up half of group revenue.

In a statement Foxtons said: The long term fundamentals of the London market remain sound. We are firmly committed to our organic growth strategy which will see between five and 10 new branches each year. All our new branches are performing as we expected, with many of those branches located in areas outside the centre of London showing growth and having average selling prices that benefit from the recent stamp duty changes.

"As indicated in our October 2014 interim management statement, we do not anticipate a recovery in sales volumes until after the General Election in May."

Foxtons shares fell yesterday in response to the figures, opening 3.7% lower than Monday, although slightly recovering later.

Comments

  • icon

    Interesting.

    Is the Zoopla share rally over the last 2 days even bigger news A lot of money has flowed that way over the last 2 days. What does this mean

    • 28 January 2015 00:50 AM
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