At last! Property sales data shows recovery from Brexit

It’s taken eight years but one of London’s highest profile estate agencies says the value of its Under Offer pipeline has at last exceeded the figure at the time of the controversial Brexit referendum in June 2016.

After the vote, interest in London property eased back, worsened during the uncertainty over what Brexit meant, and then exacerbated by the ‘race for space’ during the pandemic.

But now a statement from Foxtons, referring to its own business during the first quarter of this year, says: “Sales agreed in the quarter were 31% higher by volume compared to Q1 2023. At the end of March 2024, the value of the under-offer pipeline was 34% higher than 2023 and 12% higher than 2022, the highest value since the 2016 Brexit vote. 

“This under-offer pipeline is expected to support further revenue growth in Q2, supported by an improving sales market backdrop as mortgage availability and rates have both stabilised, alongside good levels of available stock.”

The Brexit information comes in a report to its shareholders on performance in the first three months of 2024. 

It says sales revenue was up 17% to £9.5m (compared to Q1 of 2023 when it was £8.1m) with growth underpinned by a significant increase in Foxtons’ market share of transactions. Sales shares have grown in four out of the last five quarters, it says.

Lettings revenue was up 5% in the quarter to £24m (Q1 2023: £22.8m) reflecting what Foxtons calls “incremental revenues from the two 2023 portfolio acquisitions and broadly flat revenues on a like-for-like basis. As expected, compared to 2023, the supply and demand dynamic has normalised and rental prices have stabilised accordingly.”

The agency’s Financial Services revenue was up 16% in the quarter to £2.3m (Q1 2023: £2.0m), driven by increased mortgage volumes and levels of cross-selling across the Foxtons group.

“This has been a strong start to the year with our revenue growth demonstrating the real momentum we have built across the business. Last year we regained our number one position in London and delivered significant growth in our market share of property instructions across both Lettings and Sales. The business is now focussed on converting these listings to transactions as we deliver results for our clients” says chief executive Guy Gittins. 

“Sales revenue was up 17%, reflecting improved market conditions and Foxtons’ continued growth in market share as the operational improvements we made last year took effect. We entered the second quarter with the highest value under-offer Sales pipeline since the 2016 Brexit vote, giving us optimism for the rest of the year.

“We have made great strides in the past two years, with the business’ foundations rebuilt and the Foxtons Operating Platform significantly strengthened. We are well placed to continue to unlock value within our business, drive growth, and ultimately deliver against our medium-term adjusted operating profit target.”