In Q3 2024, Foxtons reported solid performance across its divisions, with total revenues up 8% to £47.4m, and year-to-date (YTD) revenue increasing by 10% to £125.9m. CEO Guy Gittins attributed this growth to market share gains, operational improvements, and early signs of market recovery.

Lettings:

• Q3 revenue remained stable at £31.6m, matching Q3 2023 figures, which had benefited from a surge in renewal volumes. Despite lower renewal volumes in Q3 2024, new business volumes driven by operational enhancements helped maintain revenue.
• YTD revenue was up 3% to £84.0m, including £3.1m from acquisitions, such as Ludlow Thompson, acquired in November 2023, contributing £1.0m to Q3 revenue.
• Market dynamics remained steady, with strong tenant demand and rental prices in line with last year, while stock availability improved.

Sales:

• Q3 sales revenue rose by 36% to £13.5m, marking the highest Q3 sales since 2015. Transaction volumes increased by 34%, outpacing the wider market’s growth of 13%.
• YTD sales revenue jumped 31% to £35.1m, driven by a 25% increase in market share (from 4.0% in 2023 to 5.0% in 2024).
• The under-offer pipeline grew by 23% year-on-year, signaling further revenue growth in Q4.

Financial Services:

• Q3 revenue remained stable at £2.3m, with YTD revenue up 3% to £6.8m. Lower commission levels from product transfer mortgages were balanced by increased adviser productivity. Recurring refinance activity continues to support revenues.

Renters’ Rights Bill:

Foxtons supports many provisions in the Renters’ Rights Bill currently moving through Parliament and aims to help customers navigate potential impacts while identifying new opportunities for the company.

Gittins expressed optimism for Q4, citing a strong sales pipeline, improving market conditions, and a robust balance sheet, all supporting continued growth. Foxtons remains on track to meet its profitability target for 2024, aiming for an adjusted operating profit between £25m and £30m.