Foxtons closes six London branches as challenging market flattens revenue growth

Estate agent Foxtons has today confirmed the closure of six London stores, amid a downturn in sales that has led to a "challenging" market.

The closures came as part of a cost-cutting drive at the firm to meet market conditions. Branches in Beckenham, Enfield, Loughton, Ruislip and Barnes, as well as its flagship Park Lane office, have all been shuttered in the last three months.

In a quarterly trading update for the three months to 30 September, Foxtons reported its group revenue to be flat at £35.1m compared to the same period in 2017. Its total revenue for the nine months of this financial year now stands at £88.1m, at a loss of 6.4 per cent compared to 2017's takings of £93.7m in the same time.

Property sales revenue fell to £9.9m from £10.3m last year, however Foxtons believes that this is a "solid performance" as the industry in general experiences ongoing reduced transaction levels. Revenues at its mortgage broking business Alexander Hall fell similarly, dropping to £2.1m from £2.3m.

Lettings, however, remained positive. Revenue for the third quarter was £23.1m, up from £22.5m in 2017.

"This was a solid quarter in a challenging market," said Nic Budden, Foxtons chief executive. 

"We are managing the business for the current market conditions and remain confident in our long-term prospects."

Foxtons' share price rose as much as 4.9 per cent on the news in trading this morning, however it has since fallen to a plateau of between one and two per cent.