Foxtons: weak house market until election

ESTATE agent Foxtons yesterday warned that the housing market will ‘remain subdued’ until after the General Election as it declared 2014 was a year of ‘contrasting halves’.

The company, which is known for its aggressive sales tactics and fleet of branded Minis, reported an 8.2pc rise in annual profits to £42.1m after revenues rose 3.4pc to £143.9m.

Foxtons enjoyed a bumper first half of the year as the housing market boomed, but business has slowed since then and is expected to remain soft until after polling day in May.

Rising house prices, the threat of higher taxes on expensive properties and worries about the outcome of the election have dented sales in recent months – particularly in London where Foxtons specialises. ‘2014 was a year of contrasting halves,’ said chief executive Nic Budden.

‘The first half was characterised by a very strong property sales market with transactions reaching their highest levels since 2008. In the second half we saw a sharp downturn in sales volumes, particularly in central London.’

He added: ‘While we expect property sales activity to remain subdued at levels comparable to those seen in late 2012 and early 2013 until greater political and economic certainty returns, the long-term fundamentals of the market remain sound.’

Foxtons outlined total dividends for the year of 9.7p a share. But the stock, which peaked at around 390p in February last year, slipped 5p to 193.5p.

Lewis Sturdy, a dealer at trading firm London Capital Group, said: ‘Foxtons shares will act as a bellwether for confidence in the London housing market, and the latest falls are to be expected as election uncertainty delays decisions on house purchases.’