Foxtons Profits Rise in Tough Property Market

As London’s property market continues to grapple with affordability issues, the Foxtons Group has managed to maintain a competitive edge, largely attributed to its ability to retain skilled staff. The company’s shares have reached their highest levels since 2021, reflecting a growing recognition of its performance in a tight labor market. Despite the overall stagnation in property prices in the capital, Foxtons remains a dominant player, particularly as the latest Halifax House Price Index indicates a stark contrast between rising prices in the North and flat trends in the South. Affordability remains a significant concern for potential buyers in London, where average property prices exceed half a million pounds. The current high mortgage rates have led many buyers to adopt a wait-and-see approach, hoping for more favorable conditions. While fixed-rate mortgage deals are influenced by the City’s interest rate swaps market, expectations of a rate cut could potentially lead to improved offers for buyers, although skepticism remains regarding the central bank’s forthcoming decisions. In the rental market, demand remains robust, with property website Rightmove reporting an average of 17 inquiries per rental property, despite a decline from 26 in 2023. This figure is still significantly higher than the pre-pandemic average of eight inquiries in 2019, indicating persistent interest from both renters and buyers. If Foxtons can continue to outperform its competitors in this challenging environment, it may secure its position, even as the market dynamics shift towards a more competitive landscape.