One brash and pushy estate agency is outperforming the property market – and here’s how…

No wonder its boss is so smug: Foxtons’ profits are up 24 per cent, writes James Moore. And those braving the capital’s painful property market can’t afford to ignore it

Love it or loathe it, you can’t ignore Foxtons on the street or in the market (Getty)

Brash, loud and pushy: that’s Foxtons. With its latest results, London’s leading estate agent has shown that it is back on top. And those braving the capital’s painful property market can’t afford to ignore it.

Famed for those ubiquitous green and yellow Minis plying the crowded streets, the business has had its challenges in recent years. But the latest update shows a distinct change in its fortunes. Results for the first half of the year demonstrated gains in all the right places, with CEO Guy Gittens justifiably trumpeting his turnaround plan.

Revenues were up 11 per cent; pre-tax profits grew by 24 per cent; the usual array of “adjusted” numbers showed similar gains. Gittens has earned the right to be smug.

Perhaps key to the Foxtons Group’s success is the ability to keep hold of staff. Average revenue per fee earner was up 6 per cent. The same metric showed a 15 per cent rise per branch.

The work culture at Foxtons – the company describes itself online as “based on a work hard, play hard ethic”, providing “generous rewards for outstanding individuals” – might not be for everyone. But there is a certain sort of person that thrives in it. The ability to hold on to the best of these people in a tight labour market should not be underestimated.

But from here on out, it will get harder. The market has cottoned on to what’s been happening at this company. The shares haven’t been so high since 2021. Love it or loathe it, you can’t ignore Foxtons on the street or in the market.

Gittens, who is reportedly full of “excitement” (and who can blame him) will nonetheless be crossing his fingers along with everyone else ahead of the Bank of England’s meeting on Thursday.

The most recent Halifax House Price Index revealed that prices were rising at their fastest rate in the North but were relatively flat in the South and the capital, where Foxtons is king.

Affordability remains very stretched, particularly in London, where the average price is well over half a million pounds. With mortgage rates where they are, it’s no wonder buyers have been sitting on their hands in the hope of some relief. While fixed rate deals are governed by the City’s interest rate swaps market, not the Bank, a cut still ought to result in better deals.

Given what members of the central bank’s rate-setting Monetary Policy Committee (MPC) have been saying, I doubt anyone will be left happy on Thursday – although it should be said that the City is a lot more optimistic than I am.

Foxtons, of course, has its rental business – the biggest contributor – to keep it on track. Prices there are absurd too, with property website Rightmove reporting that the number of enquiries each rental property is receiving from would-be tenants stands at 17. That represents a decline from 26 in 2023 but it is still more than double the number (eight) in 2019 before the pandemic hit.

Britain doesn’t have enough homes for people wanting to live in them. If Labour can hit its new build targets – which is by no means certain – the market will pick up. Demand remains strong; it’s just the ability of that demand to pay the prices being asked that is in question. And this is true for renters and buyers alike.

That said, if Foxtons can carry on outperforming the rest of the market, as it has been doing in its London home, it should be set fair, even if its turnaround is moving into a “run faster to stand still” zone. The market should work in its favour.

Of course, if the Bank of England does spring a surprise on Thursday, the share rating will be easier to justify over the coming months. There is nothing like a rate cut to warm up a tepid market. The MPC could still put a cherry on the top of the Foxtons cake.