Economy Foxtons says first quarter property sales at record lows as Brexit weighs

Foxtons says first quarter property sales at record lows as Brexit weighs

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Foxtons says first quarter property sales at record lows as Brexit weighs

London-focused real estate agent Foxtons Group Plc said on Monday the property market had seen record low sales volumes in the first quarter, hurting revenue as ongoing Brexit uncertainty hurt consumer confidence.

The warning comes months after one of Britain’s best-known property names scrapped its dividend for 2018 and reported a fall in core earnings, hurt by weaker sales and higher costs in a tough market.

Shares of Foxtons are expected to trade 2-5% lower at open, according to premarket indicators, with the company also saying that conditions had remained unchanged in April.

London’s long-bullish property market has been sluggish in many areas over the past year hit by the uncertainty generated by Britain’s decision to leave the European Union and a rise in stamp duty property tax.

Traditional agents like Foxtons have also been challenged by nimble new internet-driven players like Purplebricks.

Foxtons’ group revenue dipped to 23.8 million pounds for the quarter ended March 31, compared with 24.5 million pounds a year earlier. The company said this was in line with its expectations.

The brand had already said in February it expected trading to remain challenging in 2019 ahead of Britain’s impending exit from the European Union.