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Foxtons sounds the alarm over London’s property market after revenue fall
Posted by Billy Wood on 11 Jan 2017
One of London’s most recognisable estate agents has sounded the alarm over the prospects for London’s property market in 2017 after it experienced a sizeable dip in revenues and property sales last year.
According to their trading update for the year ending 31 December 2016, Foxtons saw group revenues fall to £133m from £150m in 2015, while a late year slump saw sales in the final quarter total just £12m, down from £20m during the same period in 2015.
It also said that it expected EBITDA to come in at around £25m, down from £46m in 2015.
Echoing the sentiments of many property firms and estate agents, the London-based group blamed ‘challenging’ market conditions for the figures as the upward trajectory of the capital’s property market began to stall following the EU referendum.
In their statement to the stock exchange this morning, Foxtons Chief Executive, Nic Budden, admitted that it expects the challenging market conditions to continue into 2017 and that, if current sales volumes continue, its figures for this year could be below its 2016 totals.
Despite the doom and gloom, Budden still struck a defiant note when he added: "Our balanced business model provides resilience against sales market cycles and we have a strong balance sheet with no debt.
"Our high-touch approach to customer service continues to be a key differentiator and as the most recognised residential brand in London, we are uniquely positioned to manage through the market uncertainties and take advantage of any change in conditions."