Foxtons: Sales revenue booms on stamp duty completion rush
Revenue at London’s largest estate agent Foxtons has risen by a quarter, driven by the large number of completions brought forward to benefit from stamp duty relief.
The company said that overall revenue rose by 24 per cent in the three months ended March 31, with a 73 per cent rise in sales revenue.
Foxtons said it was the highest quarterly sales revenue since before the Brexit vote in 2016.
“The level of revenue growth demonstrates the scale of the turn-around within sales, as the business capitalised on stamp duty-driven increased market activity far more effectively than in previous years, such as during the stamp duty relief deadline in 2021,” CEO Guy Gittins said.
Hundreds of thousands of Brits brought forward their home purchases this year ahead of the end of stamp duty relief for first-time buyers.
This meant that the rush to buy was particularly acute in London, where the average house price is about double the average UK price.
Lettings revenue at Foxtons rose by five per cent, while financial services rose by seven per cent.
“This has been a very strong start to the year, with Foxtons recording its highest quarterly sales revenue in nearly 10 years.
“In lettings, we produced another robust performance with revenues up 5 per cent, including contributions from our new offices in the Watford and Reading areas.
“Lettings remains a key area of focus for Foxtons, with high quality non-cyclical and recurring revenues underpinning the Group’s financial profile and driving resilient earnings.
“Despite ongoing macro volatility, with our market leadership position and resilient business model, I am confident we can drive further growth this year, and deliver long-term value for shareholders, employees, and customers.”