The agency warns that transactions in London have remained flat due to a lack of supply and mortgage availability. The UK’s property market has traditionally been driven by London as international buyers target the city, but Foxtons does not expect to see a significant upturn in property sales in the rest of the year.
This comes on the day that real estate adviser Savills (SVS) expects a lull in the growth of asking prices in the capital due to issues surrounding tax on high-value properties ahead of 2015’s election. It anticipates that the value of the London residential market will grow 8.5% next year and will expand by 24.4% by 2018.
In its first update since its initial public offering (IPO) (25 Sept) Foxton’s sales totalled £41.1 million in the three months to October – 17.9% higher than a year ago. Property sales grew 28.7% during the period driven by volume, while lettings and mortgage revenues improved 8.7% and 63.6%, respectively.
Foxtons’ IPO may have wiped out its debt but its costs are rising due to the opening of new branches in Crystal Palace and Twickenham in October and the costs of being a listed company.
Its full-year results are expected in March, where Canaccord Genuity forecasts it will report sales of £136.1 million. Meanwhile, Numis has since increased its earnings before interest, tax, depreciation and amortisation (EBITDA) in the next three years by 11%, 6% and 4%, respectively.