The success of Foxtons’ lettings division has directly attributed to the London-focussed agency’s strong performance in the past year.

A trading statement by the agency shows that it acquired 2,900 new tenancies in 2021 through the acquisition of former rival agency Douglas & Gordon.

There was also a four per cent organic growth in the lettings portfolio taking the figure to over 3,000 tenancies, and delivering £10m of revenue and £3.7m of operating profit to Foxtons.

D&G lettings portfolio recently integrated into the Foxtons infrastructure and is expected to deliver around £4m of operating profit in 2022 through the delivery of what the agency calls “further synergies” and a total return on invested capital in excess of 20 per cent.

Accompanying the lettings performance, chief executive Nic Budden has told shareholders: “We are delighted with the D&G acquisition which has had a materially positive impact on profits. With increased market share, and the successful integration of acquisitions driving strong growth in revenue, profits and cash flow, we re-instated the dividend for the first time since 2017 and bought back £5.7m of shares.

“We have now completed the strategic review of our mortgage broking business, Alexander Hall, and believe it is in the Group’s interests to retain the business. Alexander Hall intends to increase its financial adviser base, to fully realise the financial services cross-selling opportunity and grow profits significantly.

“The sales market remains buoyant, with our current under-offer sales commission pipeline marginally ahead of 2021, and we have a good pipeline of potential lettings portfolio acquisitions. We have a clear plan for growth and are highly focused on delivery.”