This morning Foxtons has issued a trading statement to the markets for the nine months to 30th September 2021.

Current Trading

Foxtons has delivered a strong performance across all business areas with revenues for the period well ahead of the prior year and 2019, reflecting the continued successful implementation of its strategy alongside recovering sales and lettings markets.

Lettings

Lettings revenue was up 28% to £58.0m for the nine month period (2020: £45.2m, 2019: £53.7m) including a £7.1m contribution from Douglas & Gordon (“D&G”). Excluding the impact of D&G, volumes were up 11% on last year and average revenue per deal was broadly flat.

As a result of the Covid-19 lockdowns in 2020 and the early part of 2021, the lettings market in London started the third quarter with an excess supply of listings and with rents in the first half of the year down 9% on pre-pandemic levels. This trend has largely reversed during the quarter, with lettings listings now at historically low levels and rents having returned to pre-pandemic levels in August and September.

Sales

Sales revenue was up 114% to £38.3m (2020: £17.9m, 2019: £23.8m), reflecting positive trading momentum in the residential sales market this year and a £4.8m contribution from D&G.

At the end of September, the sales commission pipeline, based on the value of properties ‘under offer’, was broadly flat with the same point in 2020 and up over 20% on September 2019. This provides confidence that the increase in sales market transactions in London is not just a function of temporary stamp duty relief. Although we don’t have full visibility on future market volumes, the pipeline is encouraging and indicates that revenues in Q4 will be ahead of 2019 levels.

Mortgage Broking

Mortgage broking revenue was up 25% to £7.2m (2020: £5.8m, 2019: £6.0m) with the improved revenue driven by stronger sales market conditions having increased demand for new purchase mortgages.

Balance Sheet

The Group’s cash position at 30 September 2021 was £24.5m. As previously announced at the interim results, we commenced a £3m share buyback programme at the end of July, with £1.6m of shares having been repurchased by the end of September.

Commenting on today’s announcement, Nic Budden, Group Chief Executive Officer said:

“Foxtons has traded well during the first nine months of the year. In the third quarter we helped record numbers of tenants find suitable properties as many returned to pre-pandemic work or study arrangements.

“The sales business has had a strong year reflecting market share growth, increasing prices and transaction volumes which have been at their highest levels since 2016.

“We have good momentum going into the fourth quarter, with rents back to 2019 levels and an under offer sales pipeline that is significantly ahead of 2019 levels.”