Foxtons PLC’s (LON:FOXT) shares dropped as the London estate agent reported lower revenue due to a change in regulations and weak residential sales market.
Revenue for the third quarter was down 7% year-on-year to £32mln, with house sales revenue plunging 15% to £8mln because of a combination of lower volumes, falling prices and fewer high-value sales.
READ: Foxtons' losses rise as London housing market stays down
Lettings revenue dipped 4% to £22mln, hit by the tenant fee ban – a new law preventing agencies from asking letting fees to tenants and capping tenancy deposits – which came into force on 1 June.
Revenues from mortgage business Alexander Hall were in line with the same period last year at £2mln.
“We are encouraged by landlords' reaction to our improved lettings offer and are confident we can continue to gain share in the London lettings market,” said chief executive Nic Budden in a statement.
“We continue to manage costs tightly to ensure the business is well-placed to withstand this prolonged market downturn and are confident that this, coupled with our improved overall offer, positions us well for the future,” he added.
Shares dropped 3% to 65p in early trading on Thursday morning.