According to a nine-month trading update by parent company Foxtons, this was driven by a “stronger sales market” and “increased demand for new purchase mortgages”.
The brokerage reported revenues of £5.8m and £6m in 2020 and 2019 respectively.
Earlier this year, Mortgage Solutions reported that third parties acting on behalf of Foxtons had been seeking to sell the brokerage. The estate agency later confirmed that it was reviewing “strategic options” for the firm which could include its sale.
Wider business
Foxtons’ lettings revenue rose 28 per cent to £58m, including a £7.1m contribution from estate agency Douglas and Gordon. Foxtons purchased Douglas and Gordon earlier this year for £14.25m.
Sales revenue was up 114 per cent to £38.3m which the group said reflected the positive trading momentum in the residential sales market this year. This included a £4.8m contribution from Douglas and Gordon.
Foxtons’ sales commission pipeline was flat on 2020 and up by a fifth on 2021.
It said this indicated that the rise in property transactions in London was not just temporarily boosted by the stamp duty holiday. As a result, it expected its revenues for Q4 to be above what it reported in 2019, before the effects of the pandemic.
Nic Budden, group chief executive, said: “Foxtons has traded well during the first nine months of the year. In the third quarter we helped record numbers of tenants find suitable properties as many returned to pre-pandemic work or study arrangements.
“The sales business has had a strong year reflecting market share growth, increasing prices and transaction volumes which have been at their highest levels since 2016. We have good momentum going into the fourth quarter, with rents back to 2019 levels and an under offer sales pipeline that is significantly ahead of 2019 levels.”
