Member Article

Foxtons sees growth in rental market as buyers remain hesitant during Election period

After making 50-60 redundancies during a difficult 2014, Foxtons has continued to struggle into 2015 with sales commissions down 11.9% compared to Q2 last year.

The controversial London estate agent, which is often accused of playing a major role in the ‘gentrification’ of city housing, has said that the sales market remains ‘constrained’ but there there has been ‘steady growth’ in the lettings area of the business.

The lettings business accounts for around half of the group’s revenue and it has continued to balance a ‘naturally more cyclical sales business.’

Despite last year’s redundancies, Foxtons has continued its planned expansion with five new branches opening since the start of the year: Barnes, Walthamstow, West Hampstead, Ruislip and Bromley. The estate agent also plans to open two further branches by the end of the year.

Nic Budden, CEO, isn’t surprised that London property sales ‘remained relatively flat’ with ‘many potential buyers and sellers apparently delaying their decisions until the outcome of the General Election is known.’

He said: “Encouragingly growth in our letting business has continued from the momentum we saw at the end of last year.

“The attractive long term fundamentals of the London property market remain sound and we are firmly committed to our organic growth strategy which will see between five and ten new branches open each year. Many of our branches are now located in less central areas where we have seen greater levels of volume growth recently.”

This was posted in Bdaily's Members' News section by Ellen Forster .