UK’s Foxtons Forecasts Resilience in Lettings Business

Foxtons (FOXT.L) anticipates resilience in its lettings business following a marginal rise in annual profit, buoyed by the strength of its rental segment amidst subdued property sales activity.

The surge in demand for rental properties in London has resulted in a supply shortage and increased rents, driving growth in the lettings business while home sales transactions remained sluggish throughout last year.

Despite challenges posed by volatility in mortgage rates and repeated repricing of home loans by lenders, Foxtons remains optimistic about the housing market’s recovery prospects. A drop in mortgage rates in early 2024 has renewed hopes for improved transaction volumes and market conditions.

CEO Guy Gittins expressed confidence in Foxtons’ performance, highlighting the company’s progress towards its medium-term target of delivering £25 million to £30 million of adjusted operating profit.

Source: Reuters