Foxtons’ purchase of Douglas & Gordon has paid off, its latest trading update has revealed.
Its former rival contributed £7.1 million in lettings revenue and £4.8 million in sales revenue, helping boost turnover in these operations by 28% and 114% respectively.
But the figures show the letting markets has been quiet this year featuring excess supply and rents down 9% for the company
“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 says.
Its sales operation increased revenue from £17.9m at the same time last year to £38.3 million this year.
“At the end of September, the sales commission pipeline, based on the value of properties ‘under offer’, was broadly flat with the same point in 2020 and up over 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.”
Mortgage broking revenue was up 25% to £7.2m with the improved revenue driven by stronger sales market conditions having increased demand for new purchase mortgages.
Nic Budden (pictured), Foxtons‘ Group Chief Executive Officer said: “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.”