Foxtons cheers strong trading momentum at the London estate agency group

London estate agency business Foxtons is expecting first half profits to come in ahead of pre-Covid levels, as housing demand continues to look high.

The chain, which was founded in Notting Hill in 1981, said that since its last trading update on April 14, “trading momentum within the business has continued to be strong”.

The housing market has been boosted by many people reassessing their property needs during lockdowns, with some seeking home office space for example.

Estate agents and housebuilders have also seen the market helped by measures in the March Budget, from an extension of the stamp duty holiday deadline, to a new mortgage guarantee scheme to help people with a 5% deposit get on the property ladder.

Earlier this week Nationwide said that UK house price growth jumped 10.9% in May from a year earlier.

Foxtons, which is led by Nic Budden, today said the sales commission pipeline has continued to grow and is now 65% ahead of last year.

It said: “As a result of the strong trading momentum, adjusted operating profit for the first half of the year is expected to be significantly ahead of both 2020 and 2019.”

The update came on the same day that Foxtons hosts a virtual capital markets day for institutional investors and analysts.

Budden said: "Foxtons has enormous potential and we are delighted to be able to set out our growth plans. For over 40 years we have operated through the ups and downs of the sales market cycle and emerge from the unprecedented challenges of 2020 a more efficient and capable business.”

Following the coronavirus outbreak last year Foxtons launched virtual video tours of properties to help buyers and sellers during lockdowns.