Foxtons shares slump as Brexit vote and stamp duty hike take toll

London estate agent Foxtons bore the brunt of the capital’s slowing property market on Wednesday after a 40% slump in sales at the end of last year.

The shares fell 5.5p, or 6%, to 93.5p as the famously aggressive agent drummed up just £12 million in sales fees in the final quarter of 2016, compared with £20 million a year earlier.

Underlying profits will be down by almost half to £25 million as a result and according to chief executive Nic Budden, “it is likely that 2017 [sales] volumes will be below those in 2016”.

Higher stamp duty and the Brexit vote are weighing on the market.

Foxtons, whose shares floated at 230p in 2013, saw stable revenues at its lettings arm but these are under threat from a proposed ban on letting agent fees.

Peel Hunt’s Gavin Jago, who rates the shares a Sell, said: “Conditions in the London residential market remain challenging, particularly in sales.”

Taylor Wimpey also struggled in central London, which largely drove a £100 million fall in its 2017 order book to £1.7 billion. But annual profits will be at the upper end of hopes, around £755 million.

The firm has eight London sites and finance boss Ryan Mangold said the capital’s property market was “hard to call”.

However, he highlighted the pound’s depreciation boosting the appeal to overseas investors.