The boss of Foxtons today warned that the stagnant London property market is unlikely to recover until 2028 as the agency revealed deepening losses in its sales division.
Guy Gittins, chief executive of London’s biggest estate agency chain said agreed sales in the first two months of the year were down around 6%. High prices in London that stretched affordability and huge stamp duty bills were two factors holding back activity.
As a result he said “we are repositioning the sales business to accept there is going to be a lower volume environment for the medium term...we were never expecting over a five year period sales in London not to return to the 100,000 mark. But certainly in the forseable future for the rest of this year and next year that is unlikely to happen.”
London sales volumes last exceeded 100,000 in 2022 but fell by around a fifth to about 73,000 last year.
Operating losses in the sales business widened last year from £3.8 million to £5.7 million with revenue per transaction falling from £13.04 million to £11.59 million despite a 6% increase in revenue to £51.3 million.
The company said: “Buyer activity slowed in the second half of the year, driven mainly by macroeconomic uncertainty and the delayed Autumn Budget, leading to speculation around various property-related tax measures.”
It continued: “The London sales market remains challenging, with buyer demand in early 2026 continuing to be held back by weak consumer confidence. To manage this, the Group is focused on repositioning the sales business for these lower volume market conditions to accelerate the path to profitability. “
A new managing director for the sales business, Foxtons veteran James Stevenson has been appointed, to steer the return to profitability, described as a “fundamental priority for the group .
Gittins said central London was suffering worse than the more suburban neighbourhoods where Foxton is now focussing resources. Gittins said the business had not yet see any knock on effect from event in the Middle East but cautioned that any spike in inflation leading to higher interest rates would clearly be “upsetting” for buyers.
The dominant lettings business had a much more “resilient” year with revenues up 5% at £111 million and operating profits rising to £29.8 million.
At the group levels Foxtons revenues were up 5% at £172.5 million, while pre-tax profits fell 3% to £16.9 million. The dividend is held at 1.17p.
