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Foxtons estate agents full-year profits plunge 54% thanks to Brexit and stamp duty hike | Foxtons estate agents full-year profits plunge 54% thanks to Brexit and stamp duty hike |
(about 5 hours later) | |
Profits at Foxtons plunged 54 per cent in 2016 as the estate agent was hit by the Brexit vote and increases in property taxes. | |
The London-focused agent said pre-tax profits fell to £18.8m in the year to 31 December, compared with £41m a year earlier and warned that things would “remain challenging throughout 2017”. | |
It said property sales had been particularly hit, down 23 per cent to £55m, after a “marked step-down” following the EU referendum. | |
Lettings turnover was down 1 per cent, to £68.3m, slightly cushioning the fall in sales. Total revenue was down 11.4 per cent to £132.7m. | Lettings turnover was down 1 per cent, to £68.3m, slightly cushioning the fall in sales. Total revenue was down 11.4 per cent to £132.7m. |
Foxtons said sales had also been hurt by the Government's stamp duty hike that came into force in April last year, which particularly affected high-value areas such as London and the South-east. | |
Chief executive Nic Budden said: “Last year's London property market was severely impacted by an unprecedented sequence of events with changes to stamp duty and the EU referendum vote leading to a substantial reduction in property sales transactions, especially in Central London. | |
“We were not immune to the decline in volumes.” | |
Mr Budden warned that should current sales activity continue through the remainder of this year, it was “likely that 2017 sales volumes will be below last year”. | |
Worse could be to come for Foxtons as estate agents are set to be hit by Chancellor Philip Hammond's pledge to abolish letting agent fees charged to tennants. | Worse could be to come for Foxtons as estate agents are set to be hit by Chancellor Philip Hammond's pledge to abolish letting agent fees charged to tennants. |
The proposal, announced in the last Autumn Statement, is currently in consultation but no date has yet been set for its implementation. |