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Foxtons issues profits warning as Brexit jitters continue

Foxtons says the vote to leave the EU means the expected upturn in the housing market in the second half of 2015 is “now unlikely to materialise”.

It has issued a profits warning to investors and a statement from chief executive Nic Budden says: “Whilst we had a strong start to the year, we said in our first quarter update that we expected the first half to be challenging ahead of the EU referendum.”

He goes on: “Since then recent sales volumes have been slow as uncertainty and higher stamp duty has led many buyers and sellers to sit on their hands. The result of the referendum has increased uncertainty and is likely to mean that these trends continue for at least the remainder of the year.” Foxtons share prices fell a startling 21 per cent at one point this morning.

In its trading update today the company says full-year revenues and adjusted earnings before interest, tax, depreciation and amortization will be “significantly lower” than a year earlier due to “subdued sales volumes” and the cost of branch improvements. 

The agency reports its interim results to the City on July 29.

  • Andrew Ireland

    Interest rates reflect risk, the high the one the higher the other. Interest rates affect asset values and returns, usually the higher the the lower the other. Poor market knowledge increases risk which increases interest rates. The BOE cannot and never will control the All risks yield demanded by investors because it doesn't take risks, investors do that. Expect higher rates and falling values.

    Terence Dicks

    I have no idea how to interpret what you have written.

  • Brit Sixteen Sixty Four

    Mark Carney has never risen interest rates in his career, even in Canada he didn't and caused their housing bubble their like our 2010 one.

    Who would want Foxton shares anyway. Property prices were already falling in Foxtons main areas for last year mainly because of the 1st stamp duty changes. The second stamp duty changes and Brexit make Foxtons look vulnerable. These central London estate agent chains are packed on mass onto every high street corner, there is simply not enough business to support them all.

  • Algarve  Investor

    Markets in turmoil, pound plunging, the PM gone, Leave backtracking on major claims, uncertainty over the triggering of Article 50, calls for a second referendum, the knives out for Jeremy Corbyn (again), a disappearing Chancellor, investment and jobs at threat, and places such as Wales, Cornwall and Yorkshire (who all voted for Leave) demanding that their EU funding is matched when we Brexit - and what has all this been for? To take back control of...erm...we're not really sure...er...everything will be alright on the night.

    Meanwhile, uncertainty for businesses such as mine and years of chaos, turbulence, a possible return to recession and a far more divisive and nasty country. No wonder the major players of the Leave side are keeping very quiet. We've heard a little bit from Boris, and almost nothing from Gove or Farage. You got us into this mess, now you sort it out.


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