Foxtons has started 2021 with sales “well ahead” of last year, as it benefits from scores of people looking to move and a stamp duty holiday enticing buyers.
The London estate agency chain, which stands to benefit from measures to help buyers announced in last week’s Budget, said revenue in January and February was “well ahead” of the same period last year.
Foxtons, known for its fleet of Mini Coopers, added that continued tight cost control has resulted in significant growth in group operating profit over that period.
The update came as Foxtons posted total revenues of £93.5 million for 2020, down from £106.9 million.
It narrowed pretax losses to £1.4 million from a £8.8 million loss, after looking at ways to cut costs, including through reducing marketing spend.
The first half of the year was knocked by the start of the lockdown, with the housing market effectively shut down. Restrictions for the industry were eased in May.
A suspension of stamp duty on property sales of up to £500,000 was announced in July, and had been due to finish at the end of March, leading to a rush of sales late last year and early 2021 as customers tried to get deals over the line before the stamp duty holiday was due to finish at the end of March.
Chancellor Rishi Sunak last week outlined plans for a a new mortgage guarantee scheme to help buyers with a 5% deposit get on the property ladder, while the stamp duty holiday deadline was moved to June 30.
Foxtons chief executive Nic Budden said: “Overall sentiment is positive at the moment.”
Budden added: “The March 2021 budget announcement, which brought more certainty for our customers, and the rollout of the mass vaccination programme is expected to result in higher volumes in the residential sales market which, with our expertise and results focused proposition, we are well placed to benefit from."
He said during the pandemic a number of young professionals have sought more room to make working from home more pleasant, while many people reassessed their housing needs.
The London rental market was tougher as there was a lack of international students in town, and more supply available as many landlords that offered short-term lets saw demand hurt, and then switched to longer leases to try and secure tenants.
