Foxtons’ profits halve as London property market slows down

Estate agent Foxtons bore the scars of a harsh year for the London property market today following an “unprecedented sequence of events” and said 2017 was likely to be worse still.

The agent renowned for its high-pressure selling tactics and liveried minis saw pre-tax profits more than halve to £18.8 million in 2016.

It was a tumultuous year in which the top end of the property market was hit by rising stamp duty on second homes as well as the immediate uncertainty in the wake of the Brexit vote.

Earlier stamp duty reforms raising the bill on more expensive markets remained a drag. Revenues from sales fell 31% to £55.5 million.

Foxtons chief Nic Budden said the capital’s market “was severely impacted by an unprecedented sequence of events”, adding: “We expect trading conditions to remain challenging throughout 2017.

“Should current sales activity continue through the remainder of this year, it is likely that 2017 sales volumes will be below last year.”

Zone 1 was the worst affected and the agent is concentrating its growth outside central London.

The lettings market proved more resilient, although profits there are also under threat from a looming ban on letting fees in 2018. Overall revenues fell 11% to £132.7 million, and the shares, which floated at 230p in 2013, eased 0.25p to 98p.

Peel Hunt analyst Gavin Jago said: “We don’t expect any profit growth over the next couple of years.”