Revenue falls at Foxtons as tough London housing market takes toll
Estate agents Foxtons said revenue fell in the first quarter which it blamed on challenging conditions in the London property market.
Foxtons, which has its annual meeting today, said sales volumes continued to be at record lows and Brexit uncertainty is impacting on consumer confidence.
The company also said chief financial officer Mark Berry is “leaving the business by mutual agreement,” to be replaced by Richard Harris who is joining from electronics company Laird.
Read more: Foxtons swings to a loss in weak London property market
Revenue for the quarter ended 31 March was £23.8m, compared to £24.5m the previous year.
Sales revenue was £7.1m, down from £8.2m, and lettings revenue was £14.6m, up slightly from £14.3m.
“Revenue in the sales business declined as conditions in the London property market remain very challenging,” Foxtons said.
The company said there was no change to market conditions in April.
Read more: London house prices: Growth falters despite annual spring surge
Foxtons said it had a net cash balance at 31 March of £15m, up from £12m a year previously.
Berry will leave Foxtons on 31 July and will step down from the board on 24 June.
Garry Watts, chairman of Foxtons, said: “I would like to thank Mark for his substantial contribution over the past two and a half years, during which time the business has undergone a period of rapid change and development.”
According to a survey released today by property website Rightmove, house prices in London remain down year-on-year.
Compared to 12 months ago, homes in outer London are 0.9 per cent cheaper, whereas prices in inner London have fallen by 3.8 per cent. Homes in Greater London were, on average, £16,157 – 2.5 per cent – cheaper than they were a year ago, and cost, on average, £621,589.