Foxtons’ boss Michael Brown has stepped down permanently for undisclosed personal reasons.

He had been on compassionate leave since early April, with chairman Garry Watts assuming executive responsibilities.

Brown, 51, will be succeeded from the start of next month by chief operating officer Nic Budden.

Brown will stay on at Foxtons, where he was in charge for seven years, as a non-executive director.

Watts said: “On behalf of everyone at Foxtons, I would like to thank Michael for his outstanding contribution. He hands over the leadership of the business to Nic in a strong position and with a clear strategy to continue its expansion. I am delighted that we will still benefit from his experience in his new role as a non-executive director.

“Nic has worked side by side with Michael for many years and has been a core architect of Foxtons’ success. He is the natural successor to Michael and the unanimous choice of the board. I am confident that Nic’s leadership will continue to deliver further growth for the business in the years ahead.”

Brown is credited with having kept Foxtons afloat in the aftermath of its sale by founder Jon Hunt to private equity firm BC Partners.

Brown turned round Foxtons as the financial crisis started to ebb, to the extent that by last September he led its successful £649m float on the stock exchange. He made some £60m by halving his stake to 8.8% – worth £72m today.

Foxtons shares fell 22p (6.6%) on the news to 307p.