London estate agent announces 10% dip despite "significantly increased" business activity

A London estate agency has announced that its revenue was down by 10 per cent in the third quarter despite “significantly increased” business activity.

Foxtons Group said that valuations, instructions, applicant numbers and viewings were all “considerably” up on last year across both lettings and sales, but that group revenue in the third quarter had dropped to £28.5m, down 10 per cent from 2019’s £31.7m.

Over the first nine months of the year, revenue was £68.9m, down 18 per cent from £83.5m last year.

The company also said that its sales commission pipeline reached its highest level in three years.

Nic Budden, CEO, said: “Foxtons has made good progress in the third quarter, during which we were able to capitalise on increased levels of market activity, driven by the decision to build back capacity soon after the lockdown ended.

“We have successfully rebuilt the sales commission pipeline to its highest level in 3 years, delivered a resilient lettings performance and progressed our lettings book acquisition strategy.

“Although the London residential market has gained momentum, we remain cautious as economic uncertainty causes more sales transactions to fall through and is putting downward pressure on rents.

“During these uncertain conditions, the energy and commitment of our people to go the extra mile enables us to deliver exceptional customer service whilst keeping our customers and employees safe.”