According to its trading update, issued today, revenues reached £12m in the last quarter, down from £20m in the same period in the previous year. For 2016 as a whole, revenues slumped to £133m, compared to £150m in 2015.
Underlying earnings are expected to hit just £25m for the year.
What’s more, the firm warned that things are likely to get even worse this year.
Nic Budden, the chief executive of Foxtons, said: “Looking ahead, we expect trading conditions to remain challenging in 2017. Should current levels of sales activity continue in the short term, it is likely that 2017 volumes will be below those in 2016.”
Foxtons has struggled since the implementation of the additional Stamp Duty rate for second homes, while the uncertainty created by the UK’s vote to leave the European Union has dented the London market in particular. According to Savills, property prices in prime central London fell by an average of 6.9% year-on-year in the final quarter of 2016.
The ban on letting agent fees by the government is also likely to cause issues for the firm.
However, Budden was bullish about the firm’s prospects. He argued that as the “most recognised residential brand in London”, Foxtons was “uniquely positioned” to navigate its way through market uncertainties.
Foxtons’ shares crashed to a record low following the announcement, at just 87p per share, though at the time of writing it had recovered to 95p. When Foxtons floated back in 2013, its shares were valued at 230p per share.