More gloom for Foxtons as London property sales dive

London’s property market has become “very challenging” according to the latest gloomy update from Foxtons, the estate agent with offices in almost every district in the capital.

Foxtons said the sales pipeline was lower even than last year when it complained of sales hitting an historic low and 2018 had got off to a slow start in both sales and lettings.

Reporting ahead of its annual meeting, Foxtons said group revenue in the first quarter slid from £28.7 million last year to £24.5 million this year.

Foxtons said the sales pipeline, hit by the early Easter, was showing some signs of improvement. The lettings business, which provides half of Foxtons’ revenue, began to pick up after Easter and has improved throughout April.

The company has said it will concentrate on building its lettings business while the London market’s doldrums continue.

Foxtons’ share price has almost halved over the last 12 months to 70p. However, the shares were flat today.

In contrast, housebuilder Countryside Properties defied the housing slowdown.

Total group profit increased by 14% to £80.6m for the first 6 months, up from £71m last year.