Foxtons (LSE:FOXT), the London-based estate agent, said its lettings revenue topped £100 million for the first time as sales and profits in 2023 comfortably beat market forecasts.
Surging rental income helped offset a struggling London house sales market and weak financial services demand.
Lettings income grew by 16% to account for 70% of total revenues of £147 million, up from £140 million a year ago.
Operating profits ticked higher to £14 million (£13.9 million), which was better than consensus forecasts ahead of the numbers, said Foxtons (LSE:FOXT)’ statement.
Rents, especially in London, have soared over the past 12 months and Foxtons said it expects levels to remain elevated and the market to be "resilient" in 2024.
Sales have also started to pick up with the under-offer pipeline "significantly" ahead of this time a year ago.
Foxtons added it is also taking market share in sales with housing purchase commissions down 14% against a 22% drop overall for the market.
Pre-tax profits for the year will be hit by £4.3 million of one-off charges, said the statement, as part of a plan to save £3 million following the acquisition and rationalisation of Ludlow Thompson.
Guy Gittins, chief executive, commented: "2023 has been a transformational year for Foxtons, following the implementation of a refreshed strategy and operational turnaround plan.
"We have delivered a year of market share growth and have ended the year with revenue and adjusted operating profit ahead of market expectations.”