It was bound to happen sooner or later. As property developers across London continue churning out luxury apartments, the market for them has dried up.
And now the estate agents are feeling the pain of a London property market that has made little sense for a long time.
Foxtons has reported a 2.6% profit fall in pre-tax profits for 2015, recording full year results of £40m and reporting “challenging” conditions in central London.
The fall in profits came despite a year-on-year increase in revenues of 4.1%.
In December Foxtons dropped out of the FTSE 250 index, as investors abandoned shares in the firm fearing a widespread slowdown in the UK property market.
Foxtons chief executive Nic Budden said: “2015 property sales within Greater London were well below levels in 2014”.
“Activity in central London property markets has been especially constrained due to strong recent price growth and stamp duty changes, which have significantly increased the cost of moving home.”
Iconic Property Group specialises in the sale, letting and management of residential and commercial property in London. We offer outstanding customer service combined with customer care to provide complete and personal property solutions using the very latest innovative technology.