House sales activity in London tumbled by 23% in the past three months, according to estate agent Foxtons (LSE:FOXT), though market share gains meant its own performance was slightly better
Foxtons sales revenues fell 17% in the three months to end September 2023, but a strong performance for its lettings business enabled the London-based estate agent to lift revenues 5% overall.
Rental rates in the capital have been soaring to record levels and Foxtons saw booking and management fees rise 8% to £31.6 million.
Guy Gittins, chief executive, said that the lettings rise also reflected market share gains and operational upgrades, including investment in training, data and its brand.
Sales revenues dropped to £9.9 million from £11.9 million during the quarter with financial services also lower at £2.4 million from £2.8 million.
Foxtons highlighted that its sales performance was better than the market but added it expects fourth-quarter revenue still to be lower than the prior year's comparative.
More market share gains will cushion this, it added, as will buyer demand which it expects to be above last year when the chaos following former prime minister Liz Truss’s mini-budget was at its peak.
Lettings income is forecast to be robust and overall earnings to be in line with market expectations, said the statement.