Foxton’s Q1 Update

Strong revenue growth underpinned by significant Sales market share growth and Lettings growth from acquisitions.  

Entered Q2 with the Sales under-offer pipeline at its highest level since the 2016 Brexit vote which, alongside the backdrop of an improving sales market, is expected to drive further revenue growth.

Q1 sees revenue growth of 9% overall. There’s a nice rebound in Sales, albeit from a low base:

Lettings: while the table above shows 5% growth, this is driven by acquisitions. On a like-for-like basis, lettings revenue was unchanged.

Sales: growth has been “underpinned by a significant increase in Foxtons’ market share of transactions”, driven by an “operational turnaround”.

It looks like the growth trend here is set to continue very strongly in Q2, as the under-offer pipeline is up 34% vs. last year.

Foxtons notes there is “an improving sales market backdrop as mortgage availability and rates have both stabilised, alongside good levels of available stock”.

CEO comment.

Guy Gittins became CEO in September 2022, and is happy with progress so far:

This has been a strong start to the year with our revenue growth demonstrating the real momentum we have built across the business. Last year we regained our number 1 position in London and delivered significant growth in our market share of property instructions across both Lettings and Sales. The business is now focussed on converting these listings to transactions as we deliver results for our clients…

We have made great strides in the past two years, with the business’ foundations rebuilt and the Foxtons Operating Platform significantly strengthened…

Comment: Members who have been considering adding to their portfolios will note that the number of reports that sales market is beginning to recover.  Why not log on and go to the members offers where you can use the MfB mortgage calculator to see deals, or request a call with one of their expert brokers?

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