Foxtons first-quarter revenue rises but first half seen challenging

Estate agent Foxtons reported a jump in first-quarter revenue but warned the first half of the year would be challenging due to a reduced sales pipeline and Brexit-fuelled uncertainty.

In an update for the quarter to the end of March, Foxtons said total group revenue rose 16.2% from the first quarter of last year to £38.4m. The company attributed the gain to a 28.5% increase in property sales commissions resulting from a significant increase in transactions completing before the introduction of the 3% stamp duty surcharge on buy-to-let investments and second homes in April.

It said that with a large number of completions brought forward, the sales pipeline for the second quarter is now lower than the previous year.

Meanwhile, lettings revenue was flat on the previous year as tenants continued to renew existing tenancies and enter into longer tenancy periods.

Chief executive officer Nic Budden said: “We have had a strong start to the year with a record first quarter driven by a number of sales transactions being brought forward before the introduction of the additional stamp duty surcharge on buy-to-let properties.

“Nevertheless, we expect the first half of the year to be challenging with a reduced sales pipeline entering into Q2 and the underlying short term impact on transaction volumes from the uncertainty around the European referendum. Our expansion strategy remains on track as we continue to increase our market share in outer London."

At 0905 BST, Foxtons shares were down 2.6% to 151.25p.