You are here: Home - Mortgages - Buy To Let - News -

Foxtons profits plummet 65% as London property market stalls

Written by:
Foxtons estate agency has announced a 65.4% plunge in profits in 2017 in its preliminary statement for annual results – the third consecutive fall since 2015.

Foxtons currently has 67 branches across London and Surrey, and covers around 85% of Greater London.

The exposure to the capital – once its source of growth – is now the group’s vulnerability.

Analysts at the higher end of the market had previously predicted a £9m profit before tax, but the results showed that pre-tax profits fell 65.4% to £6.5m from £18.8m in 2016.

This marks another year of marked declines for the group, as it continues to battle a cooling London market. Foxtons’ pre-tax profits more than halved in 2016, falling to £18.8m from £41m in 2015 – which had dropped from £42.1m in 2014. Group revenues for 2017 fell to £117.6m from £132.7m in 2016.

The lettings division remains its strongest area.

Market risks

Foxtons’ chief executive officer Nic Budden said he expected trading conditions to remain challenging in 2018, and noted that current sales pipelines is below where it was this time last year.

The statement warned that continuous property price inflation could impact affordability and reduce transaction levels, and Brexit may harm the capital’s “standing as a major financial city”.

Furthermore, the challenge of a highly competitive marketplace was emphasised, as “new or existing competitors could develop new services or methods of working include online and hybrid agents which could give them a competitive advantage over Foxtons”.


After years of expanding branch presence to capture market share, the group will now focus more on the less cyclical lettings side of the business, adding that there are “several initiatives underway to promote growth in the lettings business”.

It will make investments in tech to cut down costs, increase branch reach, and facilitate targeted digital marketing using new analytical tools and a “vast customer database”.

Budden said: “2017 was a challenging year for the property market in which Foxtons operates.

“Whilst the lettings business continues to deliver a steady income stream for the group, the London sales market continues to be weighed down by the impact of stamp duty tax changes introduced during 2016 and declining consumer confidence, as a result of the general macro-political uncertainty

“Notwithstanding the challenging environment, Foxtons retains a strong balance sheet, high cash generation and no debt which allows us selectively to invest in areas that will drive long-term growth of the business.

“We will continue to review and optimise our business structure and leverage our proprietary technology and data in order to make our agents as productive and competitive as possible.”

Related Posts

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

  • RT @WeareJust_PR: Many people struggling to make ends meet may not realise they are entitled to financial help or find the system too confu…
  • Many people struggling to make ends meet may not realise they are entitled to financial help or find the system too…
  • There's only a few more days to go until #furlough ends and the #JobSupportScheme comes into force. I have explored…

Read previous post:
Refund scheme for money transfer victims to be launched

Victims of Authorised Push Payment (APP) scams will be better protected later this year as a uniform refund scheme is...