Information gathered in February of 2018 report loss of profits for leading Estate Agent chain Foxtons.
Foxtons reported record lows in the London Housing market last February, resulting in a dip in profits.
The dip “had a significant impact on our overall performance in 2017" said Foxtons, a drop in 65% to year ending Dec 2017.
They expect trade in Sales to remain low going into 2018, a expectation we are hearing from other high street agents. Not only restricted to the slow market, less buying and selling, but perhaps also due to the increase in online agents appealing to those wanting to save on every expense, namely expensive agency fees averaging about 3% + VAT for listing your property with Foxtons and other agencies simultaneously.
Their letting business which fell 3% is likely to be further effected by the governments plans to ban tenant fees. In the case of Foxtons, fees being somewhere between £300-£400 is a lot versus a average weekly rental price of a studio in Crystal palace being about £183, and £739 in Mayfair according to our findings and simplybusiness.co.uk.
Foxtons who have been one of the most prominent agents during London’s Property boom mentioned the market was cooling as early as 2014, and saw profits half in 2016.