North-east estate agency and national auctioneer Pattinson has posted a drop in both sales and profits in its accounts for last year.

Pre-tax profit fell by 27.1% from £515,286 to £375,754, while turnover fell 2.7% to £6.20m.

The firm said the figures reflected how the housing boom of London and the south-east failed to unfurl across the region last year.

However, managing director Caroline Pattinson said residential sales have improved since the end of 2013, and the firm has enjoyed a good first half to the current year.

There are plans to expand the firm – already the largest in the region, with nearly 200 staff – to 30 branches, with a new office in Alnwick, Northumberland. It will also recruit 30 more self-employed agents, and add to its auction network.

The agency was established more than 35 years ago by Caroline’s father Keith Pattinson. She took over as managing director last November.

But while Pattinson said she was seeing a definite “upturn” in her market after reporting falls in turnover and profits, it was the reverse story in London.

Yesterday, Foxtons posted half-year results showing rises in profits and turnover – but its warning of a slowdown to come in the London market sent shivers down the City’s spine.

Shares dived 10.3% during the day to finish at 266.75p.