Today Foxtons PLC announced their interim Q3 trading results to the City, highlighting a significant reduction in revenue with a drop of 14%. But there are more sinister undertones once you examine the trend for revenue related to the company’s sales when separated from the revenue generated through lettings.
The self-styled “London Estate Agent” saw sales plummet from £18.5m from the same three-month period last year, to just £12.2m this time round. A 34% drop year on year.
But Foxtons have reported no trouble in paradise and attributed their performance woes to a slowdown in the London market – oh and of course Brexit, although this is more of a Brexcuse to disguise their commercial problems.
Excluding the meltdown in prime central London, as Foxtons tends to play at a lower level with an average sale price of £600,000, the London market has stood relatively firm since June and so is not to blame for the firm’s failure.
During Q3 of 2016, at eMoov we saw an increase of 119% in properties sold across the capital, when compared to the same period in 2015. Our Founder and CEO, Russell Quirk, believes this is a contributing factor to Foxtons declining sales revenue and that the firm is asleep at the wheel, with their failure to pivot with the changing face of estate agency the cause of their downward spiral.
Another quarterly report by Foxtons and yet more evidence that they are in decline.
We highlighted their falling sales revenue in light of their last quarterly report and it’s clear their direction of travel is far from positive. This is hardly surprising given their head in the sand approach to the industry and their stubborn intent in continuing to open offices all over the capital, an outdated and expensive endeavour.
The longer they refuse to wake up and pivot with a changing sector, the more self-inflicted damage they will cause to themselves. Yes, the online sector still accounts for a relatively small proportion of the estate agency market overall, but with its current rate of growth we will see the high-street incumbents such as Foxtons continue to sail into ever more troubled waters.Russell Quirk