Boost: Soaring rents have offset a slump in house sales at Foxtons
Soaring rents have offset a slump in house sales at Foxtons.
The London estate agency posted profits of £6.1m for the first six months of the year, up 41 per cent on the same period of 2022.
Foxtons said it was seeing demand among tenants looking for houses to rent outstrip supply, pushing up those rents.
It takes a slice of money when it secures rental deals, meaning revenues at its lettings arm rose 26 per cent over the first-half, with this division making up 70 per cent of its income.
Looking ahead, there was ‘little change’ expected to a ‘supply and demand imbalance’ for properties, which was driving higher rents, Foxtons said.
A boom for lettings came in contrast to a 19 per cent plunge in revenues from sales as buyers struggle in the face of higher mortgage rates.
Julie Palmer, a partner at Begbies Traynor, said: ‘The shortage of rental properties means that finding somewhere to live is an ordeal for tenants but it’s a dream for Foxtons.
‘With more than 27,000 rental properties on its books, Foxtons has shrugged off rising interest rates slowing the sales market, with the lettings business more than making up the difference.’
