Foxtons raises full-year expectations after strong Q3

Foxtons lifted its full-year expectations on Thursday following a strong third quarter, sending shares in the London estate agent surging.

In an update for the three months to 30 September, the company said revenues rose 25% to £43.8m. Revenue for the nine months to the end of September was up 11% on the prior year at £108.9m.

Sales revenues grew 44% to £11.9m, while lettings saw an 18% jump to £29.2m and financial services revenue was 37% higher at £2.8m.

In lettings, organic growth was driven by a 23% increase in average revenue per transaction, as higher average rental prices and longer tenancies offset a 9% decrease in lettings volumes. Foxtons said rental price growth was underpinned by strong domestic tenant demand and growth in international tenants and corporate relocations over the summer months, while rental stock levels remain constrained.

In the sales segment, there was a 39% rise in volumes and 2% increase in average revenue per transactions. Foxtons said higher volumes were driven by a more normalised market in Q3 compared to the prior year, which was impacted by the pull forward effect of the 30 June stamp duty deadline.

"Whilst we are mindful of the ongoing macroeconomic and political uncertainty, the strength of our performance in the third quarter gives us confidence in the outlook for the full year," it said. "Accordingly, we now expect to deliver a result for the 2022 financial year ahead of our previous expectations."

At 0810 BST, the shares were up 15% at 33.25p.