 today announced a drop in revenue to £35.1 million as the property London market slows){kind=link}
London estate agent Foxtons (LON:FOXT) today announced a drop in revenue to £35.1 million in the most recent quarter compared to £37.5 million in the same period last year.
Foxtons revenue for the first nine months of this year have continued in the same vein, falling by 11.9% from £106.3 million in 2016 to £93.7 million.
Revenue from sales of properties have also declined compared to last year, from £12.3 million to £10.3 million.
Both revenue from lettings and Foxtons’ mortgage business, Alexander Hall, have provided slightly better news. Lettings only fell by 1.7% to £22.5 million whilst mortgage business revenue was at £2.3 million which mirrored 2016.
These results come after values of property in the capital have fallen in both August and September. The 0.7% drop in August signalled the first fall in prices since 2011, where as the decline of prices by 2.7% in September was the worst since 2009.
According to data from Nationwide, London’s house prices fell 0.6% in the third quarter of 2017. These decline in prices suggest why Foxtons service divisions managed to perform better than their other areas of business.
Nic Budden, CEO of Foxtons, said that “This was a resilient third quarter performance when set against the challenging conditions in the London property market”.
Foxtons also reported that “During the quarter we continued to manage our cost base in line with our plan. Cash flow also remained strong during the quarter, supporting a strong balance sheet with no debt”.