This article is from the source 'independent' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.independent.co.uk/news/business/news/foxtons-reports-profit-slump-brexit-eu-referendum-housing-market-downturn-a7161936.html

The article has changed 2 times. There is an RSS feed of changes available.

Version 0 Version 1
Foxtons blames 42% profit slump on Brexit, warns of extended housing market downturn Foxtons blames 42% profit slump on Brexit, warns of extended housing market downturn
(about 2 hours later)
Estate agent Foxtons saw profits nosedive 42 per cent in the first half of the year on the back of sharp downturn in the London housing market. The house seller blamed the EU referendum for the slowdown, which it said will last until at least the end of the year.Estate agent Foxtons saw profits nosedive 42 per cent in the first half of the year on the back of sharp downturn in the London housing market. The house seller blamed the EU referendum for the slowdown, which it said will last until at least the end of the year.
London-based Foxtons, known for its coffee shop-style branches and fleet of green and yellow Mini’s, has opened seven new branches per year since it floated in 2013 but has now said that it will slow its expansion.London-based Foxtons, known for its coffee shop-style branches and fleet of green and yellow Mini’s, has opened seven new branches per year since it floated in 2013 but has now said that it will slow its expansion.
Pre-tax profit fell to £10.5 million in the six months to the end of June from £18.1m a year earlier. Revenues from house sales fell 7 per cent to £31.3m and the firm, which warned last month that its earnings would be hit by the vote, said it did not expect sales to pick up in 2016.Pre-tax profit fell to £10.5 million in the six months to the end of June from £18.1m a year earlier. Revenues from house sales fell 7 per cent to £31.3m and the firm, which warned last month that its earnings would be hit by the vote, said it did not expect sales to pick up in 2016.
Shares in Foxtons fell 10 per cent in Friday morning trading to 111.5p.Shares in Foxtons fell 10 per cent in Friday morning trading to 111.5p.
Nic Budden, chief executive, said: “The result of the referendum to leave Europe is likely to lead to a prolonged period of further uncertainty and we do not expect London residential property sales markets to show signs of recovery before the end of the year. Nic Budden, chief executive, said: “The result of the referendum to leave Europe is likely to lead to a prolonged period of further uncertainty and we do not expect London residential property sales markets to show signs of recovery before the end of the year. 
“However, longer term, while recent political events have produced uncertainty for buyers and sellers, we expect London to remain a highly attractive property market for sales and lettings and we remain committed to our goal to reach 100 branches across greater London.”“However, longer term, while recent political events have produced uncertainty for buyers and sellers, we expect London to remain a highly attractive property market for sales and lettings and we remain committed to our goal to reach 100 branches across greater London.”
Property prices began to fall in the second half of 2015 in London’s priciest areas but Foxtons, said sales were boosted in the first half ahead of a new property tax. Property prices began to fall in the second half of 2015 in London’s priciest areas, but Foxtons said sales were boosted in the first half ahead of a new property tax.
Many buyers brought forward property purchases to avoid the additional charge on buy-to-let and second homes introduced in April, leading to record revenues.Many buyers brought forward property purchases to avoid the additional charge on buy-to-let and second homes introduced in April, leading to record revenues.
A sharp decline in sales followed in May and June however, as buyers put off purchases ahead of the 23 June referendum. A sharp decline in sales followed in May and June however, as buyers put off purchases ahead of the 23 June referendum. 
An increase in stamp duty on high value homes in 2015 has also filtered through to house prices. The new taxes meant had significantly increased the cost of moving home and meant the London market had been “especially constrained”, Budden said. An increase in stamp duty on high value homes in 2015 has also filtered through to house prices. The new taxes had significantly increased the cost of moving home and meant the London market had been “especially constrained”, Budden said.
Countrywide, the UK’s biggest estate agent, also warned that profits would be down on the back of the cooling London market. Several commercial property funds have also suspended withdrawals and discounted the value of their portfolios.Countrywide, the UK’s biggest estate agent, also warned that profits would be down on the back of the cooling London market. Several commercial property funds have also suspended withdrawals and discounted the value of their portfolios.
Property website Rightmove bucked the trend, seeing its profits rise, but also said that transactions numbers were down Property website Rightmove bucked the trend, seeing its profits rise, but also said that transactions numbers were down.