Estate agent Foxtons blamed uncertainty in the housing market in the months running up to the General Election for a slump in first-half profits.
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The London focused chain, which runs 56 branches, said its pre-tax profit fell 21.6% to £18.1 million as the “sales market remained constrained ahead of the General Election”.
It said sales commissions were almost 11% down at £33.7 million, although the high demand for rental properties in the capital saw lettings revenue rise 5.4% to £33.5 million.
But the firm said it has seen an increase in activity since the May election, adding it was confident that a strong final six months would meet City expectations for the full-year. Shares lifted 8%.
It added that although its property sales revenue was almost 11% down on the first half of last year, this was at a period when the housing market was at its highest since 2007.
Chief executive Nic Budden said: “Despite challenging market conditions, Foxtons has delivered a solid result against very tough comparables.”
He added: “With the election uncertainty now passed we have seen an increase in activity across our branch network.”
It added its sales pipeline of homes was 12% ahead of the same period a year ago.
During the period the firm said it opened five new branches in Barnes, Walthamstow, West Hampstead, Ruislip and Bromley, adding it planned to open further sites in Surbiton and Croydon in the autumn.
The business said it was concentrating on outer London areas, from travel Zone 3 onwards, because these parts of the city have higher growth than Zone 1 and 2.
It said central London housing volumes were flat after falling in 2014 and the first quarter of this year.
But areas in Zone 3 outwards have seen volume growth of around 9% last year with areas such as Walthamstow up 18%, driven by first-time buyers searching for affordable properties.
Photo from John Stillwell / PA Wire
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