Revenues have fallen at London’s best known agent Foxtons, with the tenancy fees ban costing it £1m in the first full quarter of trading since implementation on June 1.
In a trading update, the firm said revenue from both sales and lettings was down in the three months to the end of September.
Altogether group revenue for the third quarter was down 7% compared with the same period last year, from £35.1m to £32.5m.
This takes group revenue for the first nine months of this year to £83.6m, down 5% on the same period last year (£88.1m).
Sales revenue for the third quarter was down 15% to £8.4m, compared with £9.9m at the same time last year.
Foxtons said the fall was due to a combination of falling prices, fewer high value sales and lower transactions.
In lettings, where Foxtons has decided not to increase fees to landlords following the tenant fees ban, revenue was down 4% in the third quarter to £22.1m, compared with £23.1m for the same period last year.
However, Foxtons said that not raising its costs to landlords following the ban has enabled it to grow market share.
Revenue in its mortgage business, Alexander Hall, was £2.1m in the third quarter, the same as last year.
Foxtons said it remained focused on cost control, and emphasised that it is cash-healthy and has no external borrowings.
CEO Nic Budden said: “Overall, this was a resilient performance set against the London sales market which continues to deteriorate and the impact of the tenant fees ban on our lettings business.
“We are encouraged by landlords’ reaction to our improved lettings offer and are confident we can continue to gain share in the London lettings market.
“We continue to manage costs tightly to ensure the business is well placed to withstand this prolonged market downturn and are confident that this, coupled with our improved overall offer, positions us well for the future.”
The firm’s unscheduled trading update gave no guidance as to profits or full-year expectations.
Shares in Foxtons yesterday dropped 3% in early trading to 65p, but finished less than 1% down at around 67p.