Refinance activity yields 37% revenue growth for Alexander Hall in Q3

Meanwhile, the group said new purchase mortgage revenue was stable despite the weaker sales market. 

Foxtons said the performance showed the resilience of its refinance portfolio, as well as good progress with lead generation and adviser productivity growth strategies. 

For the year to date, Alexander Hall delivered a 12% rise in revenue to £7.7m. 

In total, Foxtons reported a 3% rise in revenue to £49m, including a 5% uplift from its lettings business to £33.4m and a 7% decline from its sales business to £12.5m. 

Foxtons said that although the sales market was weaker, there were “encouraging signs for medium-term growth”, and the sales market conditions were expected to improve with clarity from the Autumn Budget and the potential for rate cuts. 

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It added that it expected its full year adjusted operating profit to be in the range of £21.5m-32.2m, compared to £21.6m last year. 

Guy Gittins, chief executive of Foxtons, said: “We have delivered another quarter of growth, driven by our strategic focus on lettings and its recurring revenues, which helped offset a softer sales environment. Lettings remains the central part of our growth strategy, underpinned by our leading market position and strong landlord proposition. Recent acquisitions in Reading and Watford are performing well, and we continue to build a pipeline of lettings-focused acquisitions. 

“Macroeconomic uncertainty and speculation surrounding the delayed Autumn Budget has resulted in a subdued sales market as some buyers adopt a ‘wait-and-see’ attitude to purchases. There remains significant pent-up demand in the London volume market and we believe market conditions will improve once there is better clarity following the Budget, providing a more positive backdrop as we execute against our growth strategy. 

“Looking ahead, we remain confident about the medium term and our ability to execute against the strategy we set out at June’s Capital Market Event.”