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Alexander Hall mortgage advice revenue rises driven by strong purchase market

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  • 14/04/2021
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Alexander Hall mortgage advice revenue rises driven by strong purchase market
Alexander Hall has reported a 20 per cent rise in mortgage broking revenue in the first three months of 2021.

 

According to parent company Foxtons, revenue at the advice firm hit £2.3m from January to March, up from £1.9m in the same period last year.

It said the increase was “driven by new purchase activity”.

The upturn will be welcome after the pandemic dropped revenue at the advice firm by five per cent year-on-year in 2020, when it generated total advice revenue of £8.1m.

Alexander Hall has also announced a deal with Skipton Building Society which will see its customers looking for wider financial advice, such as on pensions and investments, referred to Skipton.

The building society has around 100 financial advisers based in branches or remote locations and offers video appointments for customers to do from their own homes.

 

London rents down

Overall, revenue across the whole Foxtons group in the quarter was £28.5m, up 24 per cent on the £23m achieved in the same period last year.

This too was predominantly based on the vibrant property sales market, where revenue was up 60 per cent to £11.4m from £7.1m “reflecting continued acceleration in volume growth”, Foxtons said.

“At the same time as delivering materially higher levels of exchanges during the quarter, the sales commission pipeline has continued to grow through the period,” it added.

Meanwhile lettings revenue was up six per cent to £14.8m but the firm noted the trend of falling London rents.

“Rents in London remained under pressure during the period, declining by around 12 per cent, but were offset by increased volumes,” it said.

Foxtons has also completed a £3m investment in property site Boomin.

Commenting on results, group chief executive officer Nic Budden said: “I am delighted with the start we have made to the year, which is the best first quarter’s trading in some time.

“The acquisition of Douglas & Gordon, the largest acquisition in our history, represents an acceleration of the Group’s strategy and is a business with significant potential.”

He added: “As we look forward, the strong trading momentum is expected to continue through the second quarter and together with tight cost control gives us confidence that operating profit for the first half will be significantly higher than last year.”

 

 

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