Foxtons closes six London branches in ‘difficult’ market | Enterprise

Foxtons has closed six of its London branches because it struggles to promote houses in a “difficult” property market within the capital.

The property company stated it had lately closed its workplaces on Park Lane in central London, Barnes, Beckenham, Enfield, Loughton and Ruislip.

“We proceed to cowl over 85% of London from 61 branches and haven’t any present plans for additional closures,” the corporate stated in a buying and selling replace for the three months to 30 September.

A majority of staff from the closed branches have been redeployed elsewhere within the enterprise, a spokesperson stated, with redundancies in single digits.

Foxtons, identified for its fleet of branded Mini Coopers, has been hit by a slowing property market in London, the place surging costs lately have left many consumers unable to afford a house within the capital. Demand has additionally been hit by Brexit uncertainty and better stamp obligation on second houses.

Third-quarter income in its gross sales enterprise fell to £9.9m from £10.3m in the identical interval a yr earlier. Lettings remained constructive, nonetheless, with income selecting as much as £23.1m from £22.5m.

Over the primary 9 months of the yr, whole income stood at £88.1m, down from £93.7m on the identical level final yr.

The Foxtons chief govt, Nic Budden, stated it was “a strong quarter in a difficult market”.

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He added: “We’re managing the enterprise for the present market circumstances and stay assured in our long-term prospects.”

On the time of its first-half ends in July, Foxtons revealed it had swung to a lack of £2.5m in contrast with a £3.8m revenue within the first half of 2017, as circumstances toughened in London.

The slowdown represents a pointy reversal in fortunes for Foxtons, which made its inventory market debut in 2013. By 2014, a time of bumper earnings and shareholder payouts, shares hit a excessive of 374p. On Tuesday shares within the firm have been down 0.3% at just under 50p.

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