London’s once-stagnant property market is showing vibrant signs of life, with leading estate agency Foxtons reporting its highest home sales figures since prior to the fateful 2016 Brexit referendum. This resurgence in buyer activity follows nearly a decade of depressed demand and faltering consumer confidence in the wake of the UK’s decision to withdraw from the European Union.
Foxtons Rides the Property Market Rebound
In a remarkable turnaround, Foxtons has revealed that both its revenues and profits for 2024 outperformed market forecasts, driven by a surge in homes under offer. As one of the most prominent real estate brands in the capital, Foxtons’ performance is widely viewed as a bellwether for the overall health of London’s property sector.
Chief Executive Guy Gittins, a Foxtons veteran who rejoined the firm three years ago, attributed the protracted slump to a series of shocks that eroded buyer confidence, starting with the Brexit vote and continuing through multiple changes of government, the COVID-19 pandemic, and the disastrous 2022 mini-budget under Prime Minister Liz Truss that sent mortgage rates soaring.
“The sales market has had a very tough time of it since the Brexit vote. 2023 was almost a record low level and last year was still historically quite low. First-quarter 2025 revenue growth in sales reflects strong under-offer activity in the fourth quarter.”
– Guy Gittins, CEO of Foxtons
Key Foxtons Financial Metrics:
- Adjusted Operating Profit: Up 33% to £19 million in 2024
- Total Revenues: 11% increase to £163 million last year
- Sales Revenues: Jumped 30% year-over-year, pointing to market share gains
Stamp Duty Deadline Drives Demand
The Nationwide Building Society anticipates a flurry of sales activity ahead of the March 31 expiration of temporary stamp duty concessions introduced in 2022. Thresholds for first-time buyers and those purchasing additional properties are set to revert to their previous, lower levels, incentivizing prospective buyers to accelerate their plans.
“The growth in the under-offer pipeline is partly driven by first-time buyer activity ahead of increased stamp duty rates from April, which may result in some buyer activity being accelerated into the first quarter ahead of the deadline.”
– Guy Gittins, CEO of Foxtons
Interest Rates Hold the Key
While early indications suggest that new buyer interest in 2025 continues to outpace prior-year levels, Gittins cautioned that the trajectory of the housing recovery will hinge on the pace and magnitude of future interest rate movements by the Bank of England. Stubbornly high inflation has compelled policymakers to maintain a restrictive stance, keeping borrowing costs elevated and testing affordability for many prospective buyers.
“The speed and extent of future interest rate reductions will likely determine the level of buyer demand in the market, with faster interest rate cuts providing an opportunity for accelerated growth.”
– Guy Gittins, CEO of Foxtons
Lettings Segment Shows Steady Growth
While sales captured the spotlight, Foxtons’ crucial lettings operation, which generates nearly two-thirds of the group’s total turnover, also displayed solid performance. Lettings revenues rose 5% for the full year and accelerated to an 11% year-over-year gain in the final quarter of 2024, underscoring the segment’s stability and its role as a reliable anchor for the broader business.
A Turning Point for London Real Estate?
With Foxtons at the forefront, London’s long-suffering property market may finally be turning a corner. The combination of pent-up demand, easing Brexit uncertainties, and the impending expiration of tax incentives has jolted buyers into action, while the lettings market continues to provide a solid foundation. However, the sustainability of the recovery will be put to the test as interest rates and affordability constraints weigh on sentiment. As the market leader, Foxtons is poised to be a prime beneficiary if the rebound gathers steam, but its fortunes—and those of London’s housing sector as a whole—remain tethered to the broader economic landscape.
