Foxtons, the well-known estate agency, has kicked off the year with an outstanding first-quarter performance, marked by a 9% increase in revenue reaching £35.7 million. This growth spans all of Foxtons’ operations, aligning perfectly with the expectations set by management.
Lettings Market Shows Steady Growth
The lettings segment of Foxtons showcased a solid increase of 5% in revenue, amounting to £24.0 million for the quarter. This rise is primarily attributed to the revenue generated from two acquisitions made in 2023. Despite these acquisitions, revenues from existing operations remained stable, demonstrating the company’s strong position in a normalised supply and demand rental market where prices have stabilised.
Sales Performance
Sales have notably outperformed other areas with a remarkable 17% jump in revenue to £9.5 million. This surge is supported by a significant increase in Foxtons’ share of the market transactions. Over the past five quarters, the company has consistently expanded its market presence. This quarter, the volume of sales agreements was 31% higher than in the same period last year. Additionally, the value of sales still in negotiation by the end of March 2024 was 34% higher than in 2023, marking the highest since the Brexit vote in 2016. These promising figures are likely to bolster revenue further into the second quarter, supported by stable mortgage rates and a healthy stock availability.
Financial Services Flourish
The financial services division also reported robust growth, with revenues up by 16% to £2.3 million. This improvement is driven by an increase in mortgage volumes, which benefited from enhanced adviser productivity and improved cross-selling strategies across Foxtons’ operations.
Leadership Commentary
Guy Gittins, the CEO of Foxtons, expressed optimism about the year’s prospects, citing the strong start and continued market share growth as indicators of the company’s renewed strength. “Last year we regained our number one position in London and delivered significant growth in our market share of property instructions across both Lettings and Sales,” Gittins remarked. He also highlighted the strategic improvements made over the past two years that have fortified the foundation of the business, positioning Foxtons to further unlock value and drive growth towards achieving their mid-term profit targets.