Foxtons has given an upbeat trading update to shareholders this morning.
It says so far this year sales revenue is a huge 114 per cent up to £38.3m (2020: £17.9m, 2019: £23.8m) reflecting positive trading momentum.
However £4.8m of that increase is Dow to Foxtons’ acquisition of D&G.
At the end of September, the sales commission pipeline, based on the value of properties 'under offer', was broadly flat with the same point in 2020 and up over 20 per cent on September 2019.
The agency says: “This provides confidence that the increase in sales market transactions in London is not just a function of temporary stamp duty relief. Although we don't have full visibility on future market volumes, the pipeline is encouraging and indicates that revenues in Q4 will be ahead of 2019 levels.”
Meanwhile on lettings, revenue was up 28 per cent to £58.0m for the nine month period (2020: £45.2m, 2019: £53.7m) including a £7.1m contribution from Douglas & Gordon.
Excluding the impact of D&G, volumes were up 11 per cent on last year and average revenue per deal was broadly flat.
Nic Budden, Group Chief Executive Officer, says: “Foxtons has traded well during the first nine months of the year. In the third quarter we helped record numbers of tenants find suitable properties as many returned to pre-pandemic work or study arrangements. The sales business has had a strong year reflecting market share growth, increasing prices and transaction volumes which have been at their highest levels since 2016. We have good momentum going into the fourth quarter, with rents back to 2019 levels and an under offer sales pipeline that is significantly ahead of 2019 levels.”