Foxtons has reported a significant year-on-year rise in its first-half profit and sales, supported by increased revenue from both lettings and house sales.
For the period ending 30 June, Foxtons’ pre-tax profit increased by 24% to £7.5m, while overall revenue grew by 11% to £78.5m compared to the previous year.
The company registered a 5% rise in lettings revenue, reaching £52.4m. This growth was partially offset by a “temporary reduction in the volume of existing tenancies re-transacting in the period, following longer tenancy terms signed across 2022 and 2023”.
Revenue from house sales surged by 28% to £21.6m, attributed to “significant market outperformance”, with Foxtons’ market share of exchanges in London climbing to 5.1% from 3.9% the previous year.
Additionally, Foxtons highlighted a 21% increase in its house purchase under-offer pipeline compared to the same period last year, marking the highest value since 2016.
The Alexander Hall mortgage broking division saw a 7% rise in sales to £4.5m, with the firm anticipating steady refinance activity and new purchase mortgage demand aligning with the broader sales market performance.
The company stated that trading in July met expectations, with stable customer behaviour and market dynamics following the general election at the start of the month.
Guy Gittins, chief executive of Foxtons, said: “The strong momentum we started the year with has continued, with double-digit revenue and earnings growth and our position as London’s largest Lettings and Sales agency reinforced.
“Despite macro headwinds and the election interruption, we continued to outperform the market, delivering strong Sales revenue growth of 28% and market share growth of 30%. Growth was also delivered in Lettings, with a double-digit increase in new business volumes.
“This growth is the result of the significant gains we have delivered in our market share of sales instructions, alongside the strengthening of our Foxtons Operating Platform and improvements to our market-leading data capabilities following considerable reengineering of the business over the last 18 months.
“Momentum can be felt across every aspect of the business and I am very excited about the second half and beyond as we work hard to deliver excellent results for the property owners of London and our shareholders.”
