Published by Global Banking & Finance Review®
Posted on January 28, 2025
2 min readLast updated: January 27, 2026
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Foxtons' 2024 earnings beat estimates due to strong lettings growth amid London's rental demand surge, despite slow home sales.
(Reuters) -Britain's Foxtons Group said on Tuesday its 2024 revenue and operating profit were ahead of market expectations, partly helped by the growth in the real estate agent's lettings business.
WHY IT'S IMPORTANTA surge in demand for rental properties in London has driven a significant increase in rent prices, benefiting the lettings business of estate agents such as Foxtons, at a time when home sales transactions have been relatively slow, largely due to affordability concerns and wider economic woes. Although recent concerns over the slowing pace of the UK interest rate cuts have dented homebuyer sentiment, the unexpected easing in December inflation has rekindled optimism for a softer landing in key economic indicators.
BY THE NUMBERSRevenue of London's largest real estate agent grew 11% to about 163 million pounds ($202.8 million) for the year ended Dec. 31, while adjusted operating profit jumped 33% to 19 million pounds.
Analysts on average were expecting revenue of 160.1 million pounds and profit of about 17.9 million pounds, according to company-compiled estimates. Lettings revenue, which accounts for 65% of the group turnover, rose about 5%.
QUOTE"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," Foxtons CEO Guy Gittins said in a statement.
($1 = 0.8039 pounds)
(Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Rashmi Aich)
Foxtons' revenue growth in 2024 was driven by a surge in demand for rental properties in London, which significantly increased rent prices and benefited their lettings business.
Foxtons reported an 11% increase in revenue to about 163 million pounds and a 33% jump in adjusted operating profit to 19 million pounds for the year ended December 31.
Lettings revenue accounts for 65% of Foxtons' total revenue, highlighting the importance of this segment to their overall business.
Foxtons CEO Guy Gittins expressed confidence that the lettings business will remain resilient, noting the highest opening under-offer pipeline since the Brexit vote in 2016.
Analysts had expected Foxtons to report revenue of 160.1 million pounds and profit of about 17.9 million pounds, which was lower than the actual results announced by the company.
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