Foxtons sales slide amid London housing slump
The group saw revenue drop nearly 15% to £24.5 million in the period.
Foxtons has seen first-quarter sales slide as the estate agent bears the brunt of a prolonged slump in the London property market.
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The group saw revenue drop nearly 15% to £24.5 million in the period, with Foxtons bemoaning “very challenging” trading.
Sales revenues dropped from £11.1 million to £8.2 million while lettings revenues came in at £14.3 million, down from £15.5 million in the same period last year.
Mortgage revenue dipped from £2.1 million to £2 million.
The group said: “Conditions in the London property market remain very challenging with sales volumes lower than prior year.
“Foxtons entered 2018 with a lower sales pipeline compared to the same point last year and this resulted in lower levels of activity in the quarter.”
Performance in lettings was impacted by a “slow start” to January and the timing of Easter, it added.
In February, Foxtons reported a collapse in full-year profits as it pointed to sales activity in London plummeting to “near historic lows”.
Annual pre-tax profit tumbled 65% from £18.8 million to £6.5 million in 2017 while revenue slumped 11% to £117.6 million.
As well as property market slowdown in the capital, Foxtons is also grappling with the fallout from a stamp duty hike in 2016 on buy-to-let properties and second homes.