(Reuters) – Foxtons said on Thursday it expects the wider home sales market to remain challenging amid high mortgage rates, even as the UK estate agency posted a 10% jump in half-year profit on strength in its lettings business.
UK rental activity and prices have risen sharply spurred by a post-pandemic bounce in residential demand coupled with higher mortgage costs for landlords, while tight credit conditions have made home purchases less affordable.
The volatility in mortgage rates and repeated repricing of home loans by lenders have hit British housing transaction volumes, although a surprise fall in June inflation figures has brought back some optimism about fewer rate hikes this year.
CEO Guy Gittins said in a statement that despite the uncertainty in the sales market, the resilience in its lettings business will keep the group in good stead for the rest of the year.
London’s largest lettings agent said adjusted operating profit from continuing operations for the six months ended June 30 rose to 6.8 million pounds ($8.8 million), from 6.2 million pounds a year earlier.
Foxtons said the group’s revenue from continuing operations grew 9% to about 71 million pounds during the period, while revenue from the lettings division jumped 26%.
($1 = 0.7720 pounds)
(Reporting by Aby Jose Koilparambil in Bengaluru; editing by Eileen Soreng)
