London-based mostly property agent Foxtons suffered a 2.6 per cent fall in pre-tax income final yr, with the capital’s housing market remaining ‘subdued’.
Elevated exercise anticipated out there after Might’s Common Election did not materialise, with the central London market ‘particularly constrained’, Foxtons stated.
Whereas the group’s pre-tax income fell, its revenues climbed four.1 per cent to £149.8million within the final 12 months.
Slowing down: London-based mostly property agent Foxtons suffered a 2.6 per cent fall in pre-tax income final yr, with the capital’s housing market remaining ‘subdued’
Foxtons, which had grow to be a logo of the capital’s property growth when it floated in September 2013, warned final yr that costs in central London have been taking time to get well, with knowledge displaying asking costs fell in a number of the costliest areas reminiscent of Knightsbridge.
The group can pay its shareholders a dividend of eleven.0p per share, thirteen.four per cent greater than a yr earlier.
In December, the Workplace for Nationwide Statistics stated property costs in London elevated by 9.four per cent within the yr, with common home costs at £536,000.
Nick Budden, Foxton’s chief government, stated: ‘Property gross sales transactions ranges inside the London market as an entire remained subdued all year long.
‘Particularly, the rise in exercise anticipated by many following the Common Election in Might 2015 didn’t arrive and, consequently, 2015 property gross sales inside Larger London have been nicely under ranges in 2014.
‘Exercise in central London property markets has been particularly constrained resulting from robust current worth progress and stamp obligation modifications, which have considerably elevated the price of shifting residence.’
Mr Budden provides: ‘Regardless of these difficult underlying market circumstances, we’ve been capable of ship progress in income and market share by persevering with to increase our department community, notably inside outer London.’
Gross sales in Foxton’s mortgage broking operations soared 31.eight per cent within the yr, whereas gross sales and lettings grew three.four and a couple of.three per cent respectively.
Shares in Foxtons have been up 1.03 per cent or 1.63p to 159.88p in late morning buying and selling.
‘Constrained’: Elevated exercise anticipated out there after Might’s Common Election did not materialise, with the central London market ‘particularly constrained’, Foxtons stated
Final month, rival property agent group Countrywide posted a fall in pre-tax income, from £102.4million in 2014 to £eighty five.8million in 2015.
However, Countrywide’s group revenue elevated four per cent to £733.7million within the yr.
Property agent Savills, which like Foxton’s, operates throughout the capital, is publishing its full yr outcomes later this week.