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Mortgage advice helps Foxtons to resilient performance despite 2020 lockdowns

  • 10/03/2021
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Mortgage advice helps Foxtons to resilient performance despite 2020 lockdowns
Foxtons Group has reported a drop in revenue for 2020 on the back of Covid-19 lockdowns, but broking revenues held up better compared to sales and lettings.


Advisory firm Alexander Hall generated total advice revenue of £8.1m, down five per cent year-on-year. 

This compared to a decline of 13 per cent in lettings, down to £57.2m, and the same fall in sales revenue, to £28.2m.

The group said Alexander Hall had grown market share during the year.

The average revenue made on a mortgage deal was £1,853 and 4,361 deals were placed by brokers. The figures were lower compared to 2019’s performance of £1,921 and 4,442 deals.

The broker saw a decline in new mortgage volumes in 2020, linked to fewer transactions in the sales market.

However, this was mitigated by growth in remortgage volumes, particularly in Q2 when many borrowers took advantage of lower mortgage rates.

Group trading has been strong in all segments during the first two months of 2021, with broking driven by higher new purchase mortgage underwriting, the firm added.

The group’s current sales pipeline is 30 per cent higher than before the spring lockdown in 2020 and 20 per cent higher than the same point in 2019.

Foxtons Group revenue dropped by £13.4m to £93.5m, while operating profit climbed by £2.6m to £1.9m, in 2020.

The company said the resilient performance was helped by the recurring nature of certain revenues, particularly lettings and mortgage broking. The business responded well following the reopening of the property market and was able to deliver a healthy profit.

The group paid £14.3m to acquire agency Douglas & Gordon, with the deal completing this month.


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