- Foxtons said its sales pipeline is at its highest value since the Brexit vote
- The general election did little to change consumer behaviour
The general election did little to affect the UK property market, with sales volumes below supply at their highest level since 2016, according to Foxtons.
The real estate agent told investors on Tuesday that transactions were in line with expectations in July, with “little change in customer behavior or market dynamics” since the election earlier this month.
At the end of June, the undersupplied sales pipeline was 21 percent higher than a year earlier and its highest level since the Brexit vote in 2016.
Foxtons said its sales pipeline is now at its highest level since the Brexit vote in 2016
Foxtons said it expects continued growth in buyer activity if a reduction in inflation translates into lower interest rates, while rental levels are expected to remain broadly stable.
He added that London’s rental market is starting to “normalise” after a period of imbalance between supply and demand over the past few years and increases in rental prices, while prices remain stable compared to last year.
Sales in London remain subdued, although activity picked up in the first half of this year, with sales up 18 percent compared to last year.
Foxtons said: ‘Growth in purchase activity was sustained by pent-up demand in the market despite little change in mortgage rates over the period and political uncertainty following the announcement of the general election in May.’
Chief Executive Guy Gittins added: ‘Despite macroeconomic headwinds and electoral disruption, we continued to outperform the market, achieving strong sales revenue growth of 28 per cent and market share growth of 30 per cent.
‘Growth also occurred in Rentals, with a double-digit increase in new business volumes, further boosted by the acquisitions we made in 2023.
Foxtons said revenue for the half year rose 11 per cent to £78.5m, while pre-tax profit rose 24 per cent to £7.5m.
Rental income grew by 5 per cent to £52.4 million, while sales revenue grew by 28 per cent to £21.6 million.
As a result of its improved earnings, Foxtons increased its interim dividend by 10 per cent to 0.22 pence per share.
Foxtons said its “continued outperformance of the market” means it is on track to meet its medium-term target of adjusted operating profit of between £25m and £30m.
Foxtons shares rose 1.08 percent to 68.13 pence in morning trading.
Gittin added: “The momentum can be felt across all aspects of the business and I am very excited about the second half and beyond as we work hard to deliver excellent results for London property owners and our shareholders.”