The specialist broker Panmure Liberum is tipping Foxtons to get stronger still in the lettings sector, suggesting the agency will boost its market share. 

In a statement to investors, the broker says: “Foxtons, London’s leading estate agency, is delivering significant market share gains. These are being driven by its systematic sales approach, unique technology platform and strong brand. Meanwhile, regulation creep is favouring the larger agency networks (such as Foxtons), adding further scale benefits.”

The broker claims that Foxtons is well placed to expand its lettings market share through both organic growth and acquisitions, and is additionally set to deliver improved revenue from the sales side.  

The statement continues: “The third quarter trading update confirmed that revenue trends remain firm. Lettings revenues are now up 43% and Sales revenues are up 61% against the third quarter of 2019. 

“ … Given the fragmented nature of the London lettings market and Foxtons’ ability to deliver both organic and inorganic growth, we see scope for Lettings volumes to move higher.

“ The (long-term) earnings upside from market share gains in Lettings and the profit turnaround in Sales are likely to be the key drivers of earnings and investor sentiment.”

The latest official Foxtons figures to shareholders refer to the third quarter of this year and show revenue across its combined sales, lettings and financial services divisions was up 8% to £47.4m, compared to £43.9m in the same period of 2023.

The star performer was the sales division, up 36% in revenue to £13.5m – the highest third quarter sales revenue since 2015. There was a 34% increase in transaction volumes, significantly outpacing the wider market, which grew around 13%. Foxtons said its market share also increased, with year-to-date market share gains reaching 25%.

Lettings revenue meanwhile remained stable at £31.6m, matching the strong performance of the third quarter of 2023, which had benefited from record renewal activity. Although renewal volumes were lower in 2024, that was offset by double-digit growth in new business volumes.