22nd Oct 2015 07:03
LONDON (Alliance News) - London-based estate agency Foxtons Group PLC on Thursday said it has seen an increase in customer activity in the third quarter in some areas of its property sales, but said the market is taking time to recover following the slowdown around the General Election.
Foxtons said the slowdown has particularly hit the central London market, where transactions remain at historically low levels due to strong recent price growth and changes to the stamp duty regime.
Revenue for the third quarter to the end of September was up 8.8% year-on-year, Foxtons said, driven by a 13% increase in property sales commissions driven by the expansion of its branch network. New Homes performed well, while residential lettings revenue growth also increased but were held back by a higher number of tenants extending their deals rather than moving to new rental properties.
For the nine months to the end of September, revenue rose to GBP114.5 million, up 1.6% year-on-year.
"We are in a strong position to capitalise on market growth currently being seen in outer London areas through the organic expansion of our branch network. Although we expect any recovery of the property sales market to be slow due to low current levels of stock, we enter the fourth quarter with a GBP1 billion sales pipeline which is well above the same point last year and based on current market conditions, we remain broadly on track to meet full year expectations," said Chief Executive Nic Budden.
By Sam Unsted; [email protected]; @SamUAtAlliance
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