Foxtons' sales revenues fall as election looms

Foxtons, the London estate agent which this week saw an angry crowd smash the windows of one of its branches, reported a drop in sales revenues as the downturn in the capital's luxury housing market continues.

Sales commissions dropped by 12 per cent year-on-year to £15.5m in the first quarter of 2015, pushing operating margins down from 32 per cent to 25 per cent. This was offset by lettings revenues which rose by 5.4 per cent to £15.9m as potential home buyers hold off and choose to rent instead.

Overall, turnover was down 3.1 per cent to £33.1m.

Chief executive Nic Budden blamed politicians for the market slowdown. "Many potential buyers and sellers [are] apparently delaying their decisions until the outcome of the general election is known," he said.

The company has a reputation for seeking to push up prices in up-and-coming areas of the capital. Its sales tactics - including glossy neon-clad sales suites and branded Mini Coopers - have attracted the wrath of housing campaigners.

At a protest against gentrification in the south London district of Brixton on Saturday, a group of angry protesters targeted the company's local branch and broke its windows, triggering a stand-off with police.

Their actions drew attention to a growing sense among many low-income people in London that they are being pushed out of the capital as a result of rising house prices.

Foxtons has an ambitious expansion programme, having opened five new branches since the start of the year, taking the total to 56. A further two are planned later this year. Foxtons aims to open between five and 10 new branches every year.

Mr Budden said he still sees "significant opportunities to expand our network across London with a focus on new territories and areas with strong growth potential".

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