Foxtons share price soars after London estate agent outperforms market

London-based estate agents Foxtons has reported a double-digit growth, fuelled by gains in market share across both sales and lettings.

The company's revenue for the year ending December 2024 increased by 11 per cent to £163m, up from £147.1m in 2023, while its adjusted operating profit saw a rise of 33 per cent to £19m, compared to £14.3m in 2023, as reported by City AM.

Early trading saw the firm's share price climb nearly seven per cent. Lettings revenue, which constitutes around 65 per cent of total revenue, grew approximately five per cent, with Foxtons maintaining its status as London’s largest lettings agent.

This robust growth is partially attributed to the company's expansion into two commuter towns last Autumn, which added an extra 2,900 combined tenancies and expanded its portfolio of tenancies by 10 per cent.

Sales revenue saw a surge of around 30 per cent year on year, Foxtons revealed, propelled by a 20 per cent increase in market share and a 10 per cent recovery in London transaction volumes.

The pipeline of properties under offer is "significantly above" this time last year, which is anticipated to support year-on-year revenue growth in 2025. The growth in the under-offer pipeline is "partly driven by first time buyer activity ahead of increased Stamp Duty rates from April 2025", according to Foxtons.

However, the company noted that buyer demand this year will primarily be determined by the rate at which interest rates fall.

Chief executive Guy Gittins commented: "Our renewed focus on training, culture and retention, supported by our best-in-class data and technology, has driven double digit market share gains in sales, and revenue growth in lettings. In addition, we have made two acquisitions in commuter towns as we expand into exciting new growth markets."

He continued, "We enter 2025 with optimism. We expect the lettings business to remain resilient and, in Sales, we start the year with the highest opening under-offer pipeline since the Brexit vote in 2016. This dynamic, coupled with our results-driven culture and industry-leading Foxtons Operating platform, leaves us well placed to continue to deliver against our strategic priorities in 2025."