Estate agent Foxtons blames Brexit for lower house sales last year as the tenant fees ban eats into income sending profits down a third
Foxtons’ revenues from house sales fell 10% to £32m; lettings down 2% to £65mAdjusted core profit for 2019 fell 32 per cent to £2.5million ‘Early signs’ of improvement so far, but company prepared for more challenges Rightmove saw another year of growth and said 2020 has started on a good foot
London-focused estate agent Foxtons said 2019 was ‘another challenging year’ as Brexit uncertainty hit its revenues from house sales and the tenant fees ban ate into its rental income.
The company, famous for the Mini Coopers that its sales teams drive around London, said it saw ‘early signs’ of an improvement so far this year, with a stronger sales pipeline than last year.
However, it still expects affordability and stamp duty to hold back sales and said it is prepared for further challenges during the Brexit transition period.
Foxtons said sales transactions continued to fall from the historic lows seen in 2018
Foxtons, which closed down four branches at the end of last year, has been hit by a property slowdown in London, its main market, as many buyers and sellers chose to stay put amid Brexit uncertainty.
The company saw total revenues fall 4 per cent to £106.9million last year, while adjusted core profit for 2019 fell 32 per cent to £2.5million.
Revenues from its lettings division, which makes up about 60 per cent of the total, fell 2 per cent to £65.7million, with £2.7million shaved off due to the tenant fees ban which was introduced in June last year.
Revenues from house sales fell by a bigger 10 per cent to £32.6million, as the company blamed the impact of continued political uncertainty on transaction volumes and prices. It also saw fewer sales of expensive homes, it said.