Compared to revenue of £2.4m during the same period last year, the group said this was due to a lower level of sales in the market and investment in its adviser capacity. However, this was offset by higher volumes of business particularly from borrowers who were refinancing.
The Foxtons Group trading update for Q1 2023 showed the subdued also had an impact on its property sales revenue, which fell by 16 per cent to £8.1m. This was attributed to a lower pipeline of sales under offer due to reduced buyer activity following the September mini Budget.
Its lettings revenue rose by 27 per cent to £22.8m, which Foxtons put down to a rise in the average revenue per transaction.
Overall, the group saw its revenue rise by 10 per cent during the quarter to £32.9m.
Figures reflect ‘volatility in mortgage market’
Guy Gittins, chief executive of Foxtons Group, said the business delivered strong annual growth, reflected by the performance in its “resilient lettings business”.
He added: “As expected, sales and financial services revenues were lower year-on-year, reflecting the lower under-offer pipeline at the start of 2023 and volatility in the mortgage market. Over the course of the quarter, operational improvements and increasing levels of buyer demand, meant we have made good progress in rebuilding the under-offer sales pipeline.”
Gittins said he was “encouraged” by the results achieved to date as the group had increased the market share of its sales instructions and completed the highest number of viewings in five years. He said its lettings business delivered growth in its cross-selling activity and financial services saw a rise in the volume of mortgages underwritten and the cross-sell of protection products.
He added: “I remain confident in our refocused strategic priorities and the determination of the business to deliver market share growth and shareholder value by making Foxtons London’s go-to estate agent.”
