The biggest real estate agency in London reduces benefits after the Brexit uncertainty
Foxtons, one of the most important real estate in the London market, reduced its profit in the first half of the year to 8.4 million pounds, about 9.9 million euros, which is 41.6% less year-on-year.
Nic Budden (CEO of Foxton) declared recently that “uncertainty surrounding the EU referendum has led to a slowdown in the London real estate market”, in relation with the announcement of the negative economic results of the Londoner real estate since the ‘leave’ beat the ‘remain’ option in the Brexit referendum. In fact, in the first quarter of the year the company achieved record revenues, but incredibly it fell sharply between May and June. Such as big contrast is related clearly with the referendum result.
In absolute figures, Foxtons got a total turnover of 68.8 million pounds between January and June, which is 3.1% less than in the same period of 2015. The gross profit fell 42%, which represents up to 10.4 million pounds.
The real estate is optimistic about the leading position of London as a one of the European capitals more attractive for property investors around the world. However, the important contrast between results before and after Brexit can be considered as a relevant warning for the rest of the sector in London.
Source: Europa Press