London sales downturn hits estate agent

FOXTONS has blamed the downturn in London’s property market and Brexit uncertainty after its losses widened in the first half of the year.

The estate agent posted a £3.2 million loss before tax for the six months to June 30, compared with £2.5m in 2018.

Group revenue also declined to £51.1m, down from £53m a year ago.

Adjusted underlying were flat at £100,000.

Chief executive Nic Budden said: “The prolonged downturn in the London sales market and continued political uncertainty continues to impact our results.”

While the lettings business was stable, with flat revenue of £31.7m, the period only included one month without tenant fees following a government ban.

Meanwhile, sales revenue was down 10 per cent to £15.4m, as the average selling price declined.

Mr Budden said: “Looking ahead, we expect conditions to remain challenging and have effectively positioned the business to reflect this.

“In lettings, we expect our ongoing commitment to landlords in light of the tenant fee ban to improve further our proposition and we are confident this will continue to drive market share.

“In the longer term, our strong balance sheet and leading market position in London will allow us to capitalise on any recovery, in what remains one of the world’s most desirable cities and dynamic property markets.”

Foxtons shares were unchanged following the news.

Analysts at Peel Hunt said: “Visibility on trading is low and there is no sign of an uplift in transaction volumes given the ongoing political uncertainty.”

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