(Reuters) -Britain’s Foxtons Group said on Tuesday its 2024 revenue and operating profit were ahead of market expectations, partly helped by the growth in the real estate agent’s lettings business.
WHY IT’S IMPORTANTA surge in demand for rental properties in London has driven a significant increase in rent prices, benefiting the lettings business of estate agents such as Foxtons, at a time when home sales transactions have been relatively slow, largely due to affordability concerns and wider economic woes. Although recent concerns over the slowing pace of the UK interest rate cuts have dented homebuyer sentiment, the unexpected easing in December inflation has rekindled optimism for a softer landing in key economic indicators.
BY THE NUMBERSRevenue of London’s largest real estate agent grew 11% to about 163 million pounds ($202.8 million) for the year ended Dec. 31, while adjusted operating profit jumped 33% to 19 million pounds.
Analysts on average were expecting revenue of 160.1 million pounds and profit of about 17.9 million pounds, according to company-compiled estimates. Lettings revenue, which accounts for 65% of the group turnover, rose about 5%.
QUOTE”We expect the lettings business to remain resilient and, in sales, we start the year with the highest opening under-offer pipeline since the Brexit vote in 2016,” Foxtons CEO Guy Gittins said in a statement.
($1 = 0.8039 pounds)
(Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Rashmi Aich)
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