Foxtons sees fall in property sales

The London-focused estate agent said lettings revenues rose 8% in the three months to 30 September to £31.6m, but sales revenues fell 17% to £9.9m. Market exchange volumes were down 23%.

Total revenues were £43.9m, just £100,000 up on the same quarter a year previously.

In the year to date, revenues came in at £114.8m, a 5% improvement year-on-year. Sales revenues fell 18%, but lettings revenues were ahead 18%. Financial services were down 12% at £6.6m.

Guy Gittens, chief executive, said: "Market share gains across lettings, sales and financial services have enabled us to grow revenue year-to-date, despite reduced sales market transaction volumes, a result of the higher interest rate environment.

"The operational progress made to date, and our continued focus on growing non-cyclical and recurring revenues to decouple earnings from sales market volatility, gives me confidence that we will continue to deliver against our strategy priorities and medium-term profit ambitions."

Looking to the current quarter, Foxtons warned that sales revenue would likely be lower year-on-year, although it noted: "With mortgage rates beginning to stabilise, buyer demand will outpace 2022 fourth-quarter levels, which was heavily impacted by the September 2022 mini budget."

In contrast, the lettings performance was expected to be "robust".

Overall, full-year earnings are anticipated to be in line with consensus.

As at 0830 BST, shares in Foxtons were 1% lower at 37.5p.