Foxtons profits slumped by 2.6% to £41m in 2015 because of falling volumes in Central London.
Foxtons profits slumped by 2.6% to £41m in 2015 because of falling volumes in Central London.
The London and Surrey estate agency, which has half of its branches in the capital's Zone 1, said a slump was down to price and stamp duty pressures.
Nic Budden, its chief executive, said: “Looking ahead, the London residential property market continues to be highly attractive both in terms of sales and lettings although it is too early to predict how transaction volumes may be impacted by recent changes to the tax regime and the short-term political and economic uncertainty caused by the UK referendum on leaving the European Union.
“We have entered the New Year with an encouraging sales pipeline, a strong lettings book and a clear strategy for further growth through our organic branch expansion.”
But eMoov.co.uk accused Foxtons of “smoke and mirrors” to disguise an uncertain future.
Russell Quirk, its founder and chief executive, said: “Things may look like business as usual for Foxtons but after interrogating their own numbers a little further, it appears as if Foxtons are deploying the old duck on a pond trick.
“What we’re seeing here is the widening reality gap in a business suffering from the evolution of an industry. Not only have they seen a squeeze on revenue per a transaction, even with the average fee still topping £13,000, but their operating costs have continued to increase despite this.
“This narrowing margin is a dynamic that is simply unsustainable in the long-run and is a direct result of the online sectors growth, as well as Foxtons failure to pivot with the changing face of the UK property landscape.”
In February the UK’s largest estate agency group Countrywide announced a profit slump of 37%.
