Foxtons is closing offices in affluent locations as it battles against market conditions.
Four branches – in Barnet, Muswell Hill, Surbiton and Richmond – have all shut. While about 26 jobs are affected, it is understood that most staff have been relocated, with some four redundancies.
The closures, all in wealthy sites with strong local economies and commuter links, come just over a year after Foxtons closed its flagship branch in Park Lane.
A spokesperson for the agent said yesterday: “Foxtons continually reviews its cost base to ensure it reflects market conditions. Continued market deterioration and individual branch performance meant it was no longer viable to operate our offices in Barnet, Muswell Hill, Richmond and Surbiton.
“After consultation with all team members concerned, we decided to close these offices as of Monday, December 2, and are now in the process of relocating the majority of affected staff to other nearby branches.
“Our footprint across London means customers in these areas are well served by other nearby Foxtons branches and our business continues to grow market share in both sales and lettings, despite ongoing market weakness.”
Foxtons, emblematic of the London market and a symbol of the estate agency industry, has posted two sets of losses this year.
In February it posted a pre-tax loss of £17.2m for last year – down from a profit of £6.5m in 2017 – and in July it posted a £3.2m loss for the first six months of this year, citing the prolonged downturn in the London sales market and political uncertainty.
Coincidentally, Foxtons shares reached a high yesterday of 85.8p. They had not been this high since January 2018, when the price reached 84p.
Although after the sharp rise the shares subsequently subsided to 80p, they still ended with a 3% rise on the day.
There were suggestions that the rise was prompted by speculation that Foxtons would benefit if the Conservatives win the election.
The business still has some 60 branches across London and the home counties, according to its website.
Below: workmen yesterday pictured shuttering the Foxtons branch in Richmond and removing the branding
Comments (7)
Not a surprise re Surbiton. The over promising, high fee, hard sell didn’t fly in the ‘burbs. Hardly saw them after their initial 0% commission launch some years ago. Hope they find better jobs soon.
Muswell Hill already has a lot of agents anyway some have been there for decades (one for centuries), in the grand scheme of things I would have thought Foxtons were just a flash in the pan.
Sorry for Foxtons
Prudent management in a tough marketplace. Certain others would do well to emulate them.
Shame to see them closing offices, but in truth they do not need as many locations these days.
Seems like prudent planning with the market continuing to be tight in 2020.
Best of luck to them.
Regional agencies with multiple offices and high central overheads and greedy directors are going to have a really tough few months.
Many established older firms are feeling the pressure because they are too costly with too many non fee earning people.
Agency is becoming smaller and more nimble.
Nobody wants to retrench but its a crime to ignore a seriously loss-making branch. At least the company is slightly transparent in its statement – compare with the obfuscation from other agencies.
Interesting that the branches are in the suburbs, where perhaps the ‘slick’ Foxtons style doesn’t work so well- the population are less transient than in Zones 1 and 2, a bit older and probably more loyal to local agents.
Strange we have a growing population, 1000’s of new properties being built… yet nobody is moving..
Keep voting for tories like we keep voting for rightmove.