Foxtons shares drop sharply after it warns of ‘subdued’ pre-budget sales

A picture


The estate agency Foxtons has warned of weak sales for the rest of the year as economic uncertainty and potential property tax changes in next month’s budget deter buyers, sending its shares sharply lower,The London-focused company, known for its green-and-yellow Mini cars, said buyers had been holding off ahead of the budget on 26 November, which is a month later than usual,Slower-than-expected interest rate cuts from the Bank of England are also having an impact by affecting the cost of mortgages, it said,As a result, “sales are likely to remain subdued for the rest of the year”, with a risk that revenues in the fourth quarter could fall below management’s expectations,Guy Gittins, the chief executive who started his career at Foxtons in 2002 and returned to lead the company three years ago, said: “Macroeconomic uncertainty and speculation surrounding the delayed autumn budget has resulted in a subdued sales market as some buyers adopt a ‘wait and see’ attitude to purchases.

”The Foxtons share price fell as much as 11% in early trading but later settled at 4.5% down.The Treasury is considering whether to bring in a new property tax to replace stamp duty on owner-occupied homes worth more than £500,000, the Guardian reported in August.Buyers in England and Northern Ireland currently pay stamp duty on homes worth more than £125,000, while first-time buyers pay the tax on homes valued at more than £300,000.On Monday, Dan Tomlinson, exchequer secretary to the Treasury, said during parliamentary questions that stamp duty raised about £12bn a year, adding: “Any changes to taxes such as SDLT [stamp duty land tax] would therefore have to be carefully considered given the potential effect on public finances.

”Foxtons’ sales revenues in the third quarter fell by 7% to £12.5m, while lettings revenues increased by 5% to £33.4m.Overall, the estate agent made revenues of £49m between July and September, up 3% from the year-earlier period.In the year so far, it has taken in £135.

1m, up 7%.Gittins believes that there “remains significant pent-up demand in the London volume market and we believe market conditions will improve once there is better clarity following the budget”.The company, founded in 1981, said the more stable revenue stream from lettings was helping to offset weaker sales from properties changing hands.Gittins said lettings remained the central part of its growth strategy.Recent acquisitions in Reading and Watford were performing well, and he said there would be more lettings-focused acquisitions.

Sign up to Business TodayGet set for the working day – we'll point you to all the business news and analysis you need every morningafter newsletter promotionAs the renters’ rights bill approaches its final stages in parliament, Foxtons said it could offer landlords guidance on the changes and expand its property management services business.Separately, shares in St James’s Place also fell on Thursday, by nearly 4%, after the financial advice company’s chief executive, Mark FitzPatrick, predicted “a more uncertain picture for UK consumers amid soft economic growth, stubborn inflation and heightened speculation around the forthcoming autumn budget”.The Gloucestershire-based business reported a near-doubling in net inflows, driving 15% growth in funds under management to £212bn over the third quarter.
societySee all
A picture

The housing crisis needs better solutions than this | Letters

John Harris’s article on poverty and housing in the UK’s hinterlands is both moving and a vital element of the combined analytical framework that describes the situation in modern Britain (A waiting list of thousands, and just five new homes for social rent: this city shows the depth of Britain’s housing crisis, 19 October).Harris notes, though, that “On the upside, the renters’ rights bill … is about to receive royal assent”. I appreciate the sentiment, but it misses two vital points. First, does anyone believe that a bill imagined by the previous Tory government and written by this current Labour one will be effectively worded and enforced? This would require courage and competence.Second, and more importantly, the new bill actively alienates landlords rather than viewing them as partners in a process of reciprocal and mutual need

A picture

Samaritans accused of stifling dissent and bullying over branch closure plans

Samaritans has been accused of bullying behaviour and shutting down dissent after suspending a number of senior volunteers who spoke out publicly against its controversial plans to close as many as half of its 200 UK branches.The mental health charity suspended at least two of its branch directors and one former branch director on Tuesday, 48 hours before its annual general meeting.It refused to elaborate on the suspensions other than to say complaints had been received about “the recent conduct of a small number of volunteers” and that these would be investigated “in the normal way”.One volunteer said the suspensions had been greeted with outrage and disbelief. “It’s petty and stupid and self-defeating,” they said

A picture

NHS staff: have you seen or been affected by violence in hospital?

According to the Royal College of Nursing, incidents of violence against A&E nurses have almost doubled over the last six years, often due to people being frustrated at waiting so long for care. Incidents include nurses being punched, spat at and pinned up against a wall.We would like to hear from NHS staff about their experiences of seeing or being the victim of violence in hospitals. What happened and was the incident reported? If the police were involved, what was the outcome?You can tell us about your experiences of violence in the NHS by filling in the form below, or messaging us.Please include as much detail as possible

A picture

Walking just 4,000 daily steps once a week cuts risk of early death in older people, study suggests

Older people who only walk 4,000 daily steps once a week still reduce their risk of dying early by a quarter, a study suggests.Staying active is known to bring a wide range of health benefits. But many people in their 60s, 70s and beyond may struggle for a variety of reasons to maintain the step count they used to reach. Until now it has been unclear how much people need to do as they age to reap the rewards.Research led by Harvard University has some answers

A picture

UK grooming gang inquiry faces further disruption as candidate for leader withdraws

A national grooming gang inquiry ordered by Keir Starmer is facing further disruption after one of two candidates who had been shortlisted to lead it withdrew from the process.Annie Hudson, a former director of children’s services for Lambeth, told survivors on Tuesday that she no longer wanted to be considered after intense media coverage.Her decision comes after three abuse survivors resigned from their roles on the victims and survivors liaison panel, accusing the Home Office and ministers of sidelining them and manipulating the agenda.“Elizabeth”, which is not her real name, stepped down on Tuesday, joining Fiona Goddard and Ellie Reynolds, who quit the panel on Monday in protest.Jess Phillips, the safeguarding minister, has denied claims of a cover-up and insisted her government was “committed to exposing the failures” to tackle “these appalling crimes”

A picture

The ultimate meaning of ‘six-sevvuhnn!’ and everything | Brief letters

I trust that the young people saying “six-seven” (Pass notes, 20 October) realise that the product of those two numbers is 42, which, according to Douglas Adams’ The Hitchhiker’s Guide to the Galaxy, is “the Answer to the Ultimate Question of Life, the Universe and Everything”. It’s what we old people say.Toby WoodPeterborough My 13-year-old granddaughter, Sophia, confirms that randomly yelling “Six-sevvuhnn!” is trending at her school. This sort of thing is nothing new: when her mother was at school, the fashionable standard greeting between teenage boys was “Whassup?”.Mark NewburyFarndale, Yorkshire “Prince” Andrew still reflects unearned privilege (Prince Andrew gives up royal titles including Duke of York after ‘discussion with king’, 17 October)