Foxtons is shutting its Park Lane office - the flagship of the agency in prime central London’s Mayfair.
Estate Agent Today was tipped off about the closure last week but was unable to confirm the move - now it is happening, with the office relocating to Marylebone.
A statement from the company says: "We believe it’s the service we deliver that makes Foxtons the best place to buy, sell, let or rent a property. That’s why we’re dedicated to setting the standard for the property industry, and always looking for new ways to serve our customers better. We recently launched a new Foxtons Prime sales and lettings team focused on providing a bespoke service for high-net-worth individuals and their £3m+ properties. The team will be moving from their dedicated offices in Park Lane to our flagship Marylebone office to join up with our other services. The team will continue to cover Mayfair and the rest of Prime Central London whilst also working across our network of 65 branches in Greater London.”
Foxtons has, in recent years, suffered a loss of market share and sharp financial problems, as the London housing market has undergone a series of blows thanks to affordability issues, stamp duty reforms and Brexit uncertainty.
In addition, some analysts suggest commercial rents for a large property in such a prime location would have been a factor in the decision.
In August a trading statement by Foxtons revealed the company plunging into the red for the first time in a decade following a massive 23 per cent slump in sales. It sold only 1,188 homes in the first six months of this year.
In response to the problem the agency announced that it was embarking on a rare advertising campaign, using a company owned by the largest independent creative agency in the world, M&C Saatchi. The emphasis would be on Foxtons’ strong sales record, with on-street and social media advertising.
Over the summer, Foxtons chief executive Nic Budden told shareholders: “The property sales market in London is undergoing a sustained period of very low activity levels with longer and less visible transaction outcomes” but he insisted “we remain confident of our long-term prospects.”
It is not known when Foxtons staff were told of the closure; when EAT checked with contacts at the company last week, following a tip-off, they claimed not to know of the possibility of the office closing.