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.