Foxtons Sees Revenue Surge as Buyers Beat Tax Deadline
(Reuters) -British real estate agency Foxtons reported a 24% jump in its first-quarter revenue on Wednesday, driven by a surge in buyers rushing to beat the end of the UK's tax relief for buying new and affordable homes.
The expiration of temporary tax incentives for affordable homes and first-time buyers at the end of March spurred potential buyers to accelerate their plans in the months prior.
However, Foxtons said that with many completions accelerated due to the relief deadline, its sales pipeline entering the second quarter was around 10% lower than last year.
British housing demand has been weighed down by slower-than-expected interest rate cuts, inflationary pressures and economic uncertainty from a global trade war even as estate agencies and homebuilders have been cautiously optimistic about a recovery.
"Despite ongoing macro volatility, with our market leadership position and resilient business model, I am confident we can drive further growth this year," Foxtons Chief Executive Officer Guy Gittins said.
The London-focused agency posted group revenue of 44.1 million pounds ($58.68 million) for the three-month period ended March 31, with sales revenue growth of 73% and lettings revenue growth of 5%.
($1 = 0.7515 pounds)
(Reporting by Simone Lobo and Pushkala Aripaka in Bengaluru; Editing by Sherry Jacob-Phillips)
