Foxtons returns to profit amid ‘buoyant’ housing market

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Foxtons hailed a “buoyant” property market as it swung back to a profit for the past year.

The estate agency said it delivered a “year of progress” in 2021 following the easing of pandemic restrictions, while house prices were boosted by increased savings during the pandemic.

The company’s sales pipeline is also “significantly” ahead of pre-pandemic levels.

It added that it expects the current trading environment to “remain positive” despite inflationary pressures, as it takes steps to control its costs and improve productivity.

Chief executive Nic Budden said: “The sales market remains buoyant, with our current under-offer sales commission pipeline marginally ahead of 2021, and we have a good pipeline of potential lettings portfolio acquisitions.”

Foxtons also revealed that it has completed a strategic review of its mortgage broking business, Alexander Hall, and has decided not to sell the division.

It came as Foxtons posted a pre-tax profit for £5.6 million for 2021, compared with a loss of £1.4 million in the previous year.

The company also reported a jump in revenues to £126.5 million for the year, compared with £95.6 million in 2020.

Mr Budden said: “2021 was a good year of progress for Foxtons, with revenues, profits and cash flow significantly ahead of 2019 and 2020.

“We successfully delivered the first phase of our growth plan, making strong progress against our core strategic objectives, and are confident of delivering further growth this year and into the future.”

Shares in the company dipped by 0.15% in early trading on Wednesday.