Foxtons blames political uncertainty for profits plunge


Foxtons carImage copyright
Foxtons

London-focused estate agent Foxtons saw profits plunge 64% in the first six months of this year.

Pre-tax profits fell to £3.8m, down from £10.5m for the same period last year. Revenues fell 15% to £58.5m.

Foxtons’ head Nic Budden said demand had slowed in the face of “unprecedented economic and political uncertainty”.

Another estate agent, Countrywide, also saw profits tumble by 98%. The firm said it would not pay a dividend.

Foxtons said in its statement that there had been further cooling of the market in the second quarter of 2017, with the unexpected general election a factor in slowing activity.

It added that London was more greatly affected than the rest of the country.

Foxtons has been warning since 2014 that rapid price growth and strong demand in London had started to cool.

However, it said that in the longer term, it expected London to remain an attractive property market for sales and lettings.



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