Foxtons sees overall revenue up but property sales revenue falls

The company says it expected a drop in sales, but operational improvements and acquisitions will deliver a good year.

foxtons branch

Foxtons has reported a 10% jump in revenue in the first quarter with lettings income rising quickly, but sales down 16%.

Revenue in the first three months was up 10% to £32.9m (Q1 2022: £30.0m) with lettings revenue up 27%.

However, sales revenue fell 16% to £8.1m (Q1 2022: £9.6m), caused by a reduction in exchange volumes in the quarter.

This sales drop was a consequence of the lower under-offer sales pipeline at the start of the year, resulting from reduced buyer activity following the September mini-budget, the company says.

However, “We are much encouraged by the early impact of the operational improvements we have made,” the firm says. “During the quarter, we saw an increase in instruction market share and we completed the highest number of quarterly viewings in the last 5 years.”

Guy Gittins, Foxtons
Guy Gittins, CEO, Foxtons

Guy Gittins, Foxtons CEO, says: “We delivered good year-on-year growth in the first quarter, reflecting strong growth in our resilient lettings business as operational improvements and high levels of tenant demand drove strong organic revenue growth, supplemented by incremental revenues from acquisitions.

“As expected, sales and financial services revenues were lower year-on-year, reflecting the lower under-offer pipeline at the start of 2023 and volatility in the mortgage market.

We are focused on delivering the operational upgrades I set out in March at pace.”

“Over the course of the quarter, operational improvements and increasing levels of buyer demand, meant we have made good progress in rebuilding the under-offer sales pipeline,” he says.

“We are focused on delivering the operational upgrades I set out in March at pace. Key areas of progress in the quarter include rebuilding fee generating headcount and embedding estate agency culture changes; including prioritising lead generation in competitive markets, focusing on core estate agency KPIs and improving cross-sell across the group.”

Foxtons admits ‘operational failings’ held sales back

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