Foxtons, known as London’s largest estate agency, has recently shared a positive outlook for its business in 2024. The company attributes this optimism to a robust performance in the lettings market and a noticeable increase in homebuyer demand, spurred by more favorable mortgage rates.

Rental Demand Skyrockets, Leading to Higher Rents

2023 witnessed a significant rise in the demand for rental properties across London, a trend that resulted in a shortage of available rentals. This imbalance between supply and demand has led to a sharp increase in rental prices, greatly benefiting estate agencies like Foxtons, particularly at a time when sales of homes were relatively low.

Foxtons reported that the dynamics of supply and demand in the lettings market are starting to normalise. However, rents are expected to maintain their high levels, historically speaking. This stabilisation suggests a continued healthy market for landlords and estate agents.

Record-Breaking Revenues from Lettings

The firm, listed on the London Stock Exchange, announced that its lettings business, which makes up approximately 70% of the group’s total turnover, saw a remarkable 16% increase in revenue, reaching an all-time high of 100 million pounds for the year ending December 31.

This impressive growth in lettings income can be partly credited to Foxtons’ strategic acquisitions of two smaller competitors in 2022: Gordon & Co in South London and Stones Residential in North London. These acquisitions have evidently paid off, strengthening Foxtons’ position in the market.

Exceeding Market Expectations

Looking ahead, Foxtons anticipates its 2023 revenue and adjusted operating profit to be around 147 million pounds and 14 million pounds, respectively. These figures surpass what market analysts had previously estimated, indicating a stronger-than-expected financial performance.