Foxtons made a strong start to 2021 as sales revenue surged during amid a booming housing market supported by the Chancellor’s stamp duty cut.
The London-focused estate agent reported a 24% increase in revenue in the first quarter to £28.5m from a year earlier. Sales revenue jumped 60% to £11.4m and lettings revenue rose 6% to £14.8m. Revenue from mortgage broking rose 20% to £2.3m.
As a result, first-half operating profit will be well above the figure for the year before, Foxtons said in a trading update. The company, known for its aggressive sales tactics and liveried Mini cars, said it expected strong trading to continue.
The UK housing market is booming as buyers seek to lock in Chancellor Rishi Sunak’s stamp duty cut, which he extended at his budget in February. Households in London have also been selling to move to more spacious property out of the city in the expectation of working from home after the pandemic.
Nic Budden, Foxton’s chief executive, said: “I am delighted with the start we have made to the year, which is the best first quarter’s trading in some time. As we look forward, the strong trading momentum is expected to continue through the second quarter and together with tight cost control gives us confidence that operating profit for the first half will be significantly higher than last year”.
Douglas and Gordon, the London agent Foxtons bought in March, contributed £1.8m in sales and lettings revenue during the period.
Foxtons shares rose 0.7% to 67.45p at 08:51 GMT.
