Foxtons mentioned it achieved double-digit income progress and higher than anticipated income for final yr, however warned that the beginning of 2023 can be harder as financial situations toughen for a lot of within the UK.
The property agent mentioned on Thursday that its lettings enterprise had grown strongly in 2022, however admitted that gross sales can be “subdued” as greater rates of interest and inflationary strain weigh on demand.
“The financial outlook for the yr forward stays unsure, however we’ve got a rising portfolio of non-cyclical revenues” mentioned chief govt Man Gittins mentioned.
Property brokers have warned {that a} difficult financial backdrop within the UK will proceed to have an effect on gross sales into 2023, because the market approaches the most popular time of yr for home shopping for and promoting. Savills lately cautioned that top rates of interest and inflationary strain would stay “in focus for a while.”
Foxtons mentioned it expects to report an 11 per cent rise in income to round £140mn for 2022, forward of market expectations. The group additionally mentioned that its adjusted working revenue would beat analysts’ estimates.
The property agent had raised its expectations in October for the complete yr as a squeeze in provide led to surging rents in London. The group, which has greater than 26,000 tenancies in its portfolio, mentioned its lettings and monetary companies enterprise now generates round two-thirds of its total income.
Nevertheless, shares in Foxtons have been down almost 2 per cent in early buying and selling.
Chris Millington, analyst at Numis Securities, mentioned “it’s most likely honest to say it’s going to be a really powerful first half for them.”
“I’ve seen exercise ranges choose up just a little initially of this yr relative to This fall, admittedly off a really low base, however the problem is realizing how that’s going to transform and the way lengthy it’s going to take to transform,” he added. “Every part takes a bit longer in occasions of uncertainty.”
