The mortgage broker’s revenue came in at £9.5m in 2021, up 17 per cent from £8.1m in 2020, Foxtons reported in annual results.
Alexander Hall’s revenue per transaction increased to £1,895 in 2021 from £1,853 in 2020, as a result of a higher proportion of purchase mortgages.
The estate agent said growth in the broker subsidiary was from cross-selling, as well as a more buoyant sales market.
In its strategy update, Foxtons said its core objective for growth organic revenue was increased cross-selling, as well as increased market share in sales and organic growth in lettings.
Foxtons chief executive Nic Budden said the group had completed a review of Alexander Hall and that it would be growing adviser numbers to “fully realise” cross-selling opportunities.
Overall the estate agent reported operating profit of £8.9m, leaping from £1.9m in 2020.
The mortgage broking contribution was reported at £4.1m, up from £3.8m in the same period a year earlier.
The estate agent said pricing was underpinned by strong buyer demand with the average property in London now worth around £521,000.
Budden said: “2021 was a good year of progress for Foxtons with revenues, profits and cash flow significantly ahead of 2019 and 2020.
“We successfully delivered the first phase of our growth plan, making strong progress against our core strategic objectives and are confident of delivering further growth this year and into the future.
“We extended our leadership position in the London sales and lettings markets, developed new revenue channels and enhanced cross-sell capabilities by leveraging our investments in marketing and technology.”
He added: “We have now completed the strategic review of our mortgage broking business, Alexander Hall, and believe it is in the group’s interests to retain the business. Alexander Hall intends to increase its financial adviser base, to fully realise the financial services cross-selling opportunity and grow profits significantly.
“The sales market remains buoyant, with our current under-offer sales commission pipeline marginally ahead of 2021, and we have a good pipeline of potential lettings portfolio acquisitions.”
