Foxtons experiences record surge in London property sales under offer

In the United Kingdom, specifically London, estate agency Foxtons has reported a significant increase in the number of properties under offer as of January 2025. This surge is attributed primarily to first-time buyers who are eager to finalize purchases ahead of impending stamp duty changes set to take effect on April 1, 2025. The company noted that the current pipeline of under-offer sales is at its highest level since the Brexit vote in 2016, suggesting a strong market condition and increased buyer confidence. Foxtons indicated that the starting figures for 2025 show a significant improvement compared to the previous year, which is expected to contribute positively to overall revenue growth in the upcoming first quarter. Specifically, the company reported an 11% increase in revenues during 2024, amounting to approximately £163 million, along with a substantial 30% rise in sales revenue for the same period. This growth is characterized by a rebound in transaction volume despite relatively stable property prices. The rush in activity is largely driven by first-time buyers who aim to complete their transactions before the new stamp duty rates come into effect. According to the recent Budget announcements, the nil rate threshold for first-time buyers will decrease from £425,000 to £300,000. This reduction in discounts for first-time buyers, along with a general decline in the nil rate threshold for residential properties from £250,000 to £125,000, is prompting buyers to act swiftly. Foxtons has positioned itself well within the current market landscape, expressing optimism for the year's prospects. The company emphasized that buyer activity remains above levels seen in the previous year, despite factors such as uncertainty regarding interest rates and consumer confidence. Additionally, Foxtons cautioned that future buyer demand will be closely linked to the pace and extent of upcoming interest rate reductions, suggesting that quicker cuts could facilitate an accelerated market recovery. Overall, with favorable conditions continuing, Foxtons is poised to regain profitability during 2025, underscoring the dynamics of the real estate market around stamp duty adjustments and first-time buyer incentives.