Estate agents see profits plunge as housing market slows down

Mon, 31 Jul 2017

Estate agents see profits plunge as housing market slows down
Two of the biggest estate agent chains in the UK - Countrywide and Foxtons - have seen their profits plummet in the first half of the year, with the housing market showing signs of slowing down.

Countrywide is the UK's largest estate agent, and posted a 98 per cent drop in pre-tax profits. In the first half of 2016, its profits were £24m, but in the same period of this year it was £450,000.

In the first half of this year Countrywide sold 20 per cent fewer homes than in the same period for 2016, and shares in the company have now dropped a record 9.7 per cent.

"We are building a stronger business for our future and remain on track with our goals to broaden our digital capability, reduce our operating cost base and strengthen our balance sheet," said Alison Platt, chief executive of Countrywide.

"Based on our current performance and the outlook for housing transactions in the UK, we expect our results and our leverage for the full year to be within the range of market expectations."

She added: "We're not optimistic about the housing market in the next half and our mantra has been one of self-help."

Foxtons, which is based in London, posted a 64 per cent drop in profits. In the six months to the end of June, profits were £3.8m, having been £10.5m for the same period of 2016. The company's group revenues also fell from £68.8m to £58.5m, a drop of 15 per cent.

Chief executive Nic Budden said: "Our performance has been resilient in the context of a London property market that has been further impacted by unprecedented economic and political uncertainty."
add to favouritesnewsletterlink to this pagesend to friendpost comments

Link to this page

Copy and Paste the following HTML into your page.

Note: For a free no obligation chat with an independant mortgage specialist about your requirements please complete ourmortgage enquiry form below.

Mortgage, Remortgage or Buy-to-Let Mortgage Enquiry Form

Stop Press: Find the perfect mortgage!
Lending criteria has been relaxed and our specialists can find you great mortgage offers to compare.
Our team do all the work to find you the best offer
We'll help you find the best mortgage for your needs and ensure that everything runs as smoothly as possible.
Deposits required are again falling
The cost of the best deals has dropped recently for those borrowing either 80%, 85% or 90% of their property's value
Independent, searching the whole market
With 1000's of mortgage products available our mortgage brokers will source the mortgage that suits your situation.
Please complete this quick, free enquiry form.


Your Details

Home Buyer Guides

Home Buyer News

Speak with an independant mortgage specialist

About Company is part of the SFN Network of websites. Sitefinders Net Ltd is a U.K based company setup in 1995. Our core business is the development of online businesses using the generic domain name concept. We have a growing portfolio of websites in many different industries such as electronics, finance, retail, seasonal and health.

Privacy Policy

Get in Touch