Foxtons profits fall as London slows
Estate agent Foxtons has seen a 42% drop in half-year profits which it attributes to a slowdown in sales in the London Market.
It said the slowdown had been caused by uncertainty around the EU referendum and warned the downturn could last for at least the rest of 2016.
Profit before tax fell to £10.5m in the first six months of the year, from £18.1m a year earlier and revenues from property sales dropped 7% to £31.3m.
Nic Budden, Foxtons’ chief executive, said: “The result of the referendum to leave Europe is likely to lead to a prolonged period of further uncertainty and we do not expect London residential property sales markets to show signs of recovery before the end of the year.
“However, longer term, while recent political events have produced uncertainty for buyers and sellers, we expect London to remain a highly attractive property market for sales and lettings and we remain committed to our goal to reach 100 branches across greater London.”
Foxtons said it would open fewer new branches next year if the downturn persists having opened five to seven branches every year since 2013.