Foxtons has cashed in on the London property market

In results posted this morning, the estate agent said pre-tax profits had jumped by 57%. That's about as much as the average two-bed semi in the capital...

by Emma Haslett
Last Updated: 27 Jan 2015

With the property market in London being what it is, those in the business of selling houses would have to be seriously bad at their jobs not to have made a bit over the past few months. But Foxtons,  king of London estate agents, has done more than that: in its first set of results since it listed in September 2013, the business posted pre-tax profits of £38.9m, up 56.6% since this time last year.

A joyous day, then, for shareholders, who will be paid £15.4m. Group revenues rose 16% to £139.2m (compared with a 2.6% jump last year): this was mainly driven by sales (rather than lettings), which rose 27%.

It's a drastic turnaround from 2009, when the estate agent had to be bailed out by banks. In 2007, at the height of the market, it was sold by founder Jon Hunt for £360m - just before the subprime mortgage crisis hit and house prices plummeted. 

Foxtons may not be beloved by buyers, who complain about its rather pushy sales tactics. But as one of the first big names to IPO since the end of the recession, markets had been willing it to do well. Perhaps it's time to trade in those branded minis for something a little roomier...

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