Foxtons has put in ‘a strong performance’ in lettings and sales in the first half of the year, with revenue up 10% to £86.1m and adjusted operating profit up 31% to £12.3m.

The agency’s interim report to shareholders shows that lettings revenue rose 4% on the back of the recent acquisitions of Imagine Properties and Marshall Vizard, what it calls the resilience of its core portfolio, and growth in its value-added property management services.

Sales saw even more impressive gains – up 25% with market share growing ahead of target at 5%. Foxtons attributes this to a busy spring sales market ahead of the Stamp Duty rise in April, and the £2.2m of incremental sales through agencies it snapped up in commuter areas over the past year.

The group’s Financial Services revenue, however, stagnated as higher new purchase mortgage volumes were offset by the phasing of refinancing activity, which is weighted towards H2.

But chief executive Guy Gittins strikes a note of caution in his message to shareholder. He says: “It’s been a strong start to the year, with revenue up 10% and adjusted operating profit growing 31%. The lettings business has continued to perform well, providing steady, recurring revenues which underpin our growth, while the sales business benefitted from a rebuilt market share position and increased market activity ahead of the stamp duty deadline.

“We expect a more challenging second half for the sales market compared to the first, and while we welcome the government’s new mortgage guarantee scheme as a constructive step, the property market also requires a comprehensive review of stamp duty to help stimulate growth and improve access to home ownership across all price points.”