Foxtons said this was down to higher purchase mortgage volumes being offset by the phasing of refinance activity, which is expected to strengthen in H2.
It said there was a 22% or £300,000 increase in new purchase transaction revenue, which reflected the market, against a 19% or £400,000 decrease in refinance revenue as fewer products expired during the period.
Alexander Hall saw a 4% drop in mortgages transacted, falling from 2,599 in H1 2024 to 2,495 this year.
However, the average revenue per transaction rose 4% to £1,816.
Foxtons said the rate of buyer activity growth in Q2 was impacted by borrowing costs being higher than originally forecast and wider economic concerns.
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Despite this, Foxtons said there was a “significant level of pent-up demand in the market”.
It added: “Where vendors are pricing competitively, we continue to see healthy buyer interest and a strong rate of offers being agreed.”
The group’s revenue increased by 10% to £86.1m, while its profit before tax rose 35% to £10.2m.
Guy Gittins, chief executive at Foxtons, said: “It’s been a strong start to the year, with revenue up 10% and adjusted operating profit growing 31%. The lettings business has continued to perform well, providing steady, recurring revenues [that] underpin our growth, while the sales business benefitted from a rebuilt market share position and increased market activity ahead of the stamp duty deadline.
“We expect a more challenging second half for the sales market compared to the first, and while we welcome the government’s new mortgage guarantee scheme as a constructive step, the property market also requires a comprehensive review of stamp duty to help stimulate growth and improve access to homeownership across all price points.
“Despite the wider macroeconomic uncertainty, the group’s strong financial profile is underpinned by stable and recurring earnings from lettings and gives us continued confidence in delivering our growth strategy.”
