London's largest estate agent, Foxtons, has reported a 25% increase in revenue, driven by the high number of completions brought forward to take advantage of stamp duty relief.
The firm revealed that total revenue for the quarter ending March 31 rose by 24%, with sales revenue seeing a significant 73% increase, as reported by .
This marks the highest quarterly sales revenue since before the Brexit vote in 2016. CEO Guy Gittins commented: "The level of revenue growth demonstrates the scale of the turn-around within sales, as the business capitalised on stamp duty-driven increased market activity far more effectively than in previous years, such as during the stamp duty relief deadline in 2021."
Many Brits expedited their home purchases this year ahead of the termination of stamp duty relief for first-time buyers.
Previously, first-time buyers were exempt from stamp duty on property purchases up to £425,000, but this threshold has now been reduced to £300,000.
This led to a particularly sharp buying frenzy in London, where average house prices are roughly double the º£½ÇÊÓƵ average.
Meanwhile, lettings revenue at Foxtons increased by 5%, and financial services saw a 7% rise. "This has been a very strong start to the year, with Foxtons recording its highest quarterly sales revenue in nearly 10 years," said Gittins
"In lettings, we produced another robust performance with revenues up 5 per cent, including contributions from our new offices in the Watford and Reading areas."
"Lettings remains a key area of focus for Foxtons, with high quality non-cyclical and recurring revenues underpinning the Group's financial profile and driving resilient earnings."
"Despite ongoing macro volatility, with our market leadership position and resilient business model, I am confident we can drive further growth this year, and deliver long-term value for shareholders, employees, and customers."
