Foxtons reports strong nine-month trading

(Sharecast News) - Estate agency Foxtons reported "strong" trading across the business on Thursday in an update for the nine months to 30 September, amid a recovery in the domestic rental market.
Group revenue rose 50% from the same period in 2020, to £103.6m. Sales revenue grew 114% to £38.3m, including a £7.1m contribution from Douglas & Gordon, which Foxtons bought earlier in the year.

Lettings revenue was 28% higher at £58m, including a £4.8m contribution from D&G, while revenues in the mortgage broking business rose 25% at £7.2m.

Foxtons noted that following lockdowns in 2020 and the early part of 2021, the lettings market in London started the third quarter with an excess supply of listings and with rents in the first half of the year down 9% on pre-pandemic levels.

"This trend has largely reversed during the quarter, with lettings listings now at historically low levels and rents having returned to pre-pandemic levels in August and September," it said.

Meanwhile, at the end of September, the sales commission pipeline was broadly flat versus this time last year, and up more than 20% on September 2019.

"This provides confidence that the increase in sales market transactions in London is not just a function of temporary stamp duty relief. Although we don't have full visibility on future market volumes, the pipeline is encouraging and indicates that revenues in Q4 will be ahead of 2019 levels," it said.

Chief executive Nic Budden said: "Foxtons has traded well during the first nine months of the year. In the third quarter we helped record numbers of tenants find suitable properties as many returned to pre-pandemic work or study arrangements.

"The sales business has had a strong year reflecting market share growth, increasing prices and transaction volumes which have been at their highest levels since 2016. We have good momentum going into the fourth quarter, with rents back to 2019 levels and an under offer sales pipeline that is significantly ahead of 2019 levels."