Foxtons recorded a drop in profit last year as sales activity slowed, but a robust rental market helped the group shrug off the worst of the downturn.

Following on from the trading update Foxtons issued on 25 January for the year ended 31 December 2023, the company published its 2023 full year results yesterday.

The London-focused estate agent’s sales revenue dropped 14% to £37.2m in 2023 while the number of houses sold fell by 11% year-on-year, reflecting higher mortgage rates and weaker mortgage availability.

But Foxton’s annual revenue rose 5% to £147.1m, as lettings revenue – which accounted for about 70% of turnover – jumped 16% to £101.2m despite a 6% fall in the number of properties let.

It reported a 34% drop in profits before tax to £7.9m, owing in part to one-off costs including closing some of its branches.

Reflecting on the slump in property sales, Foxtons said transaction volumes ‘were at some of the lowest levels since 2008 and 2020, when the market was adversely affected by the global financial crisis and the Covid-19 market shutdown respectively.

Guy Gittins, chief executive officer of Foxtons, commented: ”Our strategy to deliver growth through sales market cycles by delivering lettings growth is working, delivering resilient earnings for the year despite a weak sales market and the investment we made in fee earners.

“We are on track against our medium-term target of delivering £25million to £30million of adjusted operating profit, through organic and acquisitive growth and supported by improving market conditions.”

Foxtons reports strong trading performance as ‘operational turnaround plan’ delivers growth