There is little chance of a recovery in the London housing market before May’s general election, Foxtons has warned.
The London-based estate agency, which issued a profit warning in October, said that 2014 had been a year of two halves, with intense activity in the first six months subsiding in the second period.
Nic Budden, its chief executive, said: “While we expect property sales activity to remain subdued at levels comparable to those seen in late 2012 and early 2013 until greater political and economic certainty returns, the long-term fundamentals of the London market remain sound and attractive.”
Pre-tax profits rose 8.2 per cent to £42.1 million in the 12 months to December 31, on revenues that rose 3.4 per cent to £143.9 million, in line with expectations, but growth slowed in the second half, with volumes down 3.7 per cent. Foxtons’ shares fell 5p to 193½p.
The threat of a mansion tax, pledged by Labour for properties worth more than £2 million, has led to buyers being put off transactions, Foxtons said.
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“Our organic expansion strategy and our strong lettings business will enable us to grow revenue and profit even in a flat property sales market,” Mr Budden added.