Foxtons Group Plc experienced its largest share price increase in nearly two months after announcing that it commenced the new year with a sales pipeline of under-offer properties that is “significantly above” last year’s figures, marking the highest starting position since Brexit. The company attributed the growth in its under-offer pipeline to heightened activity from first-time buyers in anticipation of rising stamp duty rates set to take effect in April 2025. Foxtons anticipates that some buyer activity will be expedited into the first quarter of 2025, ahead of the upcoming UK tax on property transactions.
Despite recent uncertainties regarding interest rates and consumer confidence, the estate agent indicated that its sales division is “well positioned to return to profitability” if a more favorable market environment persists throughout the year. In early trading, shares of the London-based firm surged by as much as 6.7%, marking the largest intraday increase since December 3. The company reported an 11% rise in revenue to approximately £163 million ($203 million) for 2024, with sales operations revenue increasing by about 30%, driven by a roughly 20% gain in market share and a 10% recovery in transaction volumes in London.
Foxtons, one of the leading brokers in London, also expressed confidence that its lettings operations will “remain resilient in 2025,” supported by strong tenant demand and adequate stock levels that are expected to sustain rental prices and transaction volumes.
