Foxtons, a prominent London-based real estate agency, has reported a substantial 30% year-on-year increase in revenue from its sales operations, signaling a potential rebound in the city's housing market. This resurgence comes as Foxtons experiences the highest number of homes under offer since the Brexit vote in 2016, a period that had significantly dampened consumer confidence and led to a decline in house sales. The company also noted growth in its lettings operation, which rose by 5% over the year and 11% in the final quarter of 2024.
Foxtons' adjusted operating profit saw a notable rise, growing by a third to £19 million last year. Overall revenues for the company increased by 11% to reach £163 million in 2024. Despite these positive developments, the London housing market still remains below historical levels, recovering from what was described as an "almost record low" in house sales during 2023. Guy Gittins, a representative from Foxtons, remarked on the challenges faced by the market post-Brexit.
“The sales market has had a very tough time of it since the Brexit vote,” – Guy Gittins
In September 2022, the UK government intervened by temporarily increasing the nil rate of stamp duty to stimulate the faltering market. For first-time buyers, the threshold was raised from £300,000 to £450,000, while those purchasing an additional home saw an increase from £125,000 to £250,000. These changes are set to be reversed on March 31, potentially influencing buyer behavior in the upcoming months.
Despite these challenges, early data from 2025 suggests that new buyer activity remains robust compared to previous years. The increase in stamp duty thresholds provided a temporary boost, encouraging transactions and helping stabilize the market after years of uncertainty. Foxtons' performance reflects this trend, with an uptick in both sales and lettings operations.
“2023 was almost a record low level and last year was still historically quite low,” – Guy Gittins