London-focused estate agent Foxtons (LON:FOXT) warned the property market has been slow to recover after the general election, particularly in the capital.
“Property transaction levels [in London] remain at historically low levels,” the company said, blaming soaring prices and stamp duty changes.
Underlying earnings rose 15.5% in the third quarter to £16.4mln, but remain 5.6% lower at £37mln for the year so far.
Sales in other areas have improved, however, and third quarter sales were 8.8% higher at£43.5mln compared to the previous year.
This takes sales for the nine months to September, to £114.5mln, 1.6% higher than at the same stage in 2014.
Foxtons’ said the rise reflects an increase in its market share and its focus on increasing its number of branches.
Nic Budden, chief executive, added: “Although we expect any recovery of the property sales market to be slow due to low current levels of stock, we enter the fourth quarter with a £1bn sales pipeline which is well above the same point last year and based on current market conditions, we remain broadly on track to meet full year expectations".
Shares dropped 6.2% to 207p today.