Foxtons profits distributed since impact of Brexit shadows the housing market

Market - Mohit Shah - Mar 04,2019

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foxtons profits distributed since impact of brexit shadows the housing market

British estate agency, Foxtons, swayed to a loss in 2018 since Brexit uncertainty pondered on London housing sales.

The renowned British estate agency stated a loss before tax that was close to £17.2 million last year; these figures are disturbing when compared to the £6.5 million profit reported in the year 2017.

According to company statistics, revenue also dropped by 5% to be valued at £111.5 million.

There have been several events including the closure of six branches across London which have contributed to this damage.

While the group’s letting business remained resilient, posting a 1% rise in revenue to £67 million, factors including political uncertainty led to lower activity in the sales division.

Sales revenue was down 15% to £36.2 million.

The closure of six branches in London also contributed to the loss, after the move incurred a charge of £15.7 million.

While Foxtons says the outlook for sales continues to stay the same, chief executive Nic Budden was upbeat over its long-term forecasts.

Budden said, “The overall fundamentals of Foxtons and our market are attractive”.  

He further added London is a ‘desirable’ international city that comprises of sophisticated and diverse residential properties. Their brand is identical with London property and has enhanced their offerings so as to strengthen business and position of sales for significant improvement.