Foxtons has reported a decline in third-quarter revenue but said the housing market in London is starting to pick up.

In the quarter to the end of September, group revenue fell 10% on the same period a year ago to £28.5m, and was 18% lower over the first nine months of the year, at £68.9m.

Letting revenue dropped 8% to £19.5m owed in part to fewer high value short-term lets and a significant drop in overseas student tenants and corporate relocations, according to Foxtons.

Sales revenue for the quarter was down 18% to £6.9m due to depressed levels of exchanges, a hangover from the coronavirus lockdown in the spring.

The agency also said that its sales commission pipeline hit its highest level in three years.

Foxtons chief executive officer Nic Budden said: “Foxtons has made good progress in the third quarter, during which we were able to capitalise on increased levels of market activity, driven by the decision to build back capacity soon after the lockdown ended.

“We have successfully rebuilt the sales commission pipeline to its highest level in three years, delivered a resilient lettings performance and progressed our lettings book acquisition strategy.

“Although the London residential market has gained momentum, we remain cautious as economic uncertainty causes more sales transactions to fall through and is putting downward pressure on rents.

“During these uncertain conditions, the energy and commitment of our people to go the extra mile enables us to deliver exceptional customer service whilst keeping our customers and employees safe.”