Foxtons’ unaudited end-of-year trading statement makes no bones about it – the lettings division saved the agency’s bacon in 2023.
It suffered a sales collapse of 14 per cent but total revenue for the agency was up five pr cent and it recorded a profit of £14m largely thanks to the work of its lettings division.
The lettings side achieved £100m in revenue for the first time, thanks to a 16 per cent growth in lettings income which “more than offset expected reductions in sales and financial services revenue caused by a significantly weaker sales market.”
The agency says: “The challenging market conditions were primarily driven by higher interest rates and the weaker macroeconomic backdrop.”
Chief executive Guy Gittins says: “2023 has been a transformational year for Foxtons, following the implementation of a refreshed strategy and operational turnaround plan. We have delivered a year of market share growth and have ended the year with revenue and adjusted operating profit ahead of market expectation.
“Our strategy to prioritise non-cyclical and recurring revenues has driven revenue and profit growth, despite a weaker sales market, and in contrast to prior year. This, combined with the operational progress and significant market share gains made to date, gives me confidence that our strategy is working, and we enter 2024 focused on delivering our strategic priorities and medium-term profit ambitions.”
Property consultancy TwentyCi claims that Foxtons is the fastest growing lettings and sales agency in the UIK right now, having achieved a 36 per cent increase in market share in the lettings sector in 2023, and 28 per cent hike in sales.