A slump in profits and revenues at estate agent Foxtons in the first half of this year has been blamed on an uncertainty in the property market in the run-up to the election.
Profits before tax were £18.1m, down from £23.1m in the previous first half. Property sales fell almost 11% and overall group revenues reduced by 2.3% to £71.1m.
The estate agent has blamed the slowdown on a sceptical market before the election in May. Following the Tory majority, there has been an increase in activity, according to chief executive Nic Budden.
“As we predicted earlier in the year, the sales market remained constrained during the months before the general election,” he said.
“With the election uncertainty now passed we have seen an increase in activity across our branch network.”
The company currently operates 56 branches across London, Surrey and Middlesex, seven more than last year.
Budden said the company expects stronger sales in the second half. New branch openings are focused on growing areas in outer London, he said.
The limited housing stock and continuous demand in London is pushing prices and lettings, although the uncertainty in advance of the election led to a drop in the number of properties for sale in central London.
Areas outside central London, such as Walthamstow, increased in popularity as buyers tried to find affordable homes.
Lettings revenues were up 5% – from £31.8m to £33.5m – on last year. The company said rentals are a “key element of our business strategy”. Almost one third of households in London are now living in private rented accommodation, double the figure a decade ago.
The estate agent become embroiled in controversy last month over the installation of “anti-homeless” spikes outside its Holborn branch. The company said that it would remove them after a petition attracted more than 21,000 signatures.
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