In a surprise announcement this morning, Foxtons has revealed that its total revenues in the past three months dropped 14 per cent when compared to the same quarter of last year - but that its sales revenue shrank by a startling one third to £12.2m.
Foxtons warned just a few days after the June referendum vote that Britain's decision to leave the EU would lead to a fall in transactions which could last until the end of the year.
Although its lettings revenue held up strongly, at £22.8m revenue over three months, the sales collapse compared to 2015 is described as “reflecting a continuation of reduced activity in the London property sales market.”
Chief executive Nic Budden says: “The long term fundamentals of the London property market remain very attractive and represent a huge opportunity for growth with nearly £3 billion in total sales and lettings commissions on 2015 volumes. We have built Foxtons to withstand sales market cycles with our lettings revenue comprising over half the business.”
He says two more branches will open in the first quarter of 2017 despite today’s results.
The firm also revealed its involvement in Build To Rent, the institutional investment constructing purpose-built rental accommodation.
"The response to the marketing initiatives which we launched to enhance our lettings business has been encouraging, in particular, the new business which we have secured from the institutional private rented sector” says the firm.
The company has also improved its technology offer to customers, says Budden.
"Leveraging our leading technology, we launched a new 'MyFoxtons' online portal in September, which gives customers complete visibility on the entire sales and lettings processes, without compromising on the high-touch, personal service they receive from Foxtons agents. Customer feedback so far has been very positive."