Profits at Foxtons tumble 64%, with warning of ‘challenging’ 2017
Foxtons has posted a 64 per cent slide in profits and warned of a “challenging” end to 2017, as political uncertainty and tough comparatives in the previous year weighed on the UK estate agent.
Total revenues at the group fell 15 per cent to £58.5m in the six months to June 30, which the group said was partly due to the “surge” in sales the previous year, as buyers rushed to the market before an increase in stamp duty on buy-to-let homes.
Profit before tax fell 64 per cent to £3.8m, as Foxtons warned the property market “continues to be weighed down” by the tax changes and said the “unexpected” general election “led to a further slowing of transaction levels” in the second quarter.
It added it expects trading conditions “to remain challenging for the remainder of 2017 given the effects of ongoing economic and political uncertainty.”
Despite the slowdown, the company said it remained optimistic for the London property market.
London remains an economic and financial powerhouse, with an enviable level of global reach and influence. With its solid infrastructure and skilled workforce supporting both financial and commercial sectors, its long-term attractiveness is unlikely to diminish. London continues to be a highly attractive property market driven by high population density and limited housing stock.