Rising rents help Foxtons real estate
Momentum: Sky-high rents have offset a drop in home sales in Foxtons
Sky-high rents have offset a drop in home sales in Foxtons.
The London estate agency posted profits of £6.1m in the first six months of the year, up 41% from the same period in 2022.
Foxtons said it was seeing demand among tenants looking for homes to rent outpace supply, driving up those rents.
A slice of money is needed when you secure rental agreements, meaning revenue in its leasing arm increased 26 percent in the first half, with this division accounting for 70 percent of its revenue.
Looking ahead, “small changes” were expected in an “imbalance between supply and demand” for properties, which was driving higher rents, Foxtons said.
A rental boom came in contrast to a 19 percent drop in sales revenue as buyers battle higher mortgage rates.
Julie Palmer, partner at Begbies Traynor, said: “The shortage of rental properties means that finding a place to live is a test for renters, but a dream for the Foxtons.
“With more than 27,000 rental properties on its books, Foxtons has shrugged off rising interest rates slowing the sales market, with the rental business more than making up the difference.”