27th Apr 2016 07:12
LONDON (Alliance News) - London-focused estate agent Foxtons Group PLC on Wednesday said revenue surged in the first quarter, helped by higher levels of activity ahead of new buy-to-let and second home stamp duty legislation.
Foxtons said total revenue for the quarter to the end of March was GBP38.4 million, up 16% year-on-year and driven by a 29% increase in property sales commissions.
The increase came from a significant rise in transactions completing before the introduction of a 3.0% stamp duty surcharge on buy-to-let investments and second homes which came into force in the UK on April 1.
Foxtons did note, however, that with a large proportion of transactions brought forward to beat the deadline, the sales pipeline for the second quarter is lower year-on-year.
Nic Budden, Foxtons' chief executive, said the first half of the year will still be challenging due to the weaker second quarter pipeline and amid an anticipated underlying impact on volumes from the upcoming referendum on the UK's place in the European Union.
Lettings revenue was flat year-on-year in the first quarter, as tenants renewed existing deals and entered into longer tenancy periods. Alexander Hall, Foxtons' mortgage broker, continued to see strong growth, with revenue rising 58% in the quarter.
Foxtons shares were down 2.7% to 151.00 pence early Wednesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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