- September property sales revenue higher after stamp duty boost
- London lettings suffer as short-term lets and business travel decline
Three Foxtons (FOXT) board members topped up their stakes in the estate agency after third-quarter instructions surged thanks to the stamp duty holiday and pent-up demand. Chief financial officer Richard Harris, non-executive chairman Ian Barlow and independent non-executive director Alan Giles bought in aggregate shares worth just over £125,000.
By the end of September, the value of properties 'under offer' was up almost a third year on year, but increased time between offer and exchange and economic uncertainty was also driving higher transaction fall-through rates, the estate agency said.
A recent survey of industry participants by Legal & General Mortgage Club found that it was taking up to 15 weeks for purchases to complete, or up to 17 weeks for buyers with more complex requirements, leaving some at risk of missing out on potential stamp duty savings. Capacity concerns have prompted industry body the Home Buying and Selling Group to write to the chancellor, asking for an extension to the 31 March deadline in order to allow the industry to catch-up.
The 'hangover' from spring lockdown also meant that Foxton's sales revenue over the entire third quarter was down by almost a fifth. The group returned to full capacity in September, but does not intend to shut any of its offices during the second, month-long lockdown.
Lettings revenue also declined 8 per cent as London saw a decline in high-value, short-term lets and a significant reduction in the number of overseas student tenants and business travel, which sapped average revenue per tenancy.
Cash balances have benefited from April’s £22m capital raise, but with the UK housing market heading for a potential cliff-edge on 31 March and a looming rise in unemployment, the outlook for property sales transactions next year looks increasingly dark. With the return of rental demand in the capital also uncertain, the odds of the shares re-rating in the near term looks unlikely. At 34p, sell.
Last IC View: Sell, 76p, 28 Feb 2020
| Buys | |||||
| Company | Director/PDMR | Date | Price (p) | Aggregate value (£) | Comments |
| Aston Martin | Lawrence Stroll (ch) | 27 Oct 20 | 50 | 20,000,000 | Purchased by PCA in placing |
| Abbey | Charles Gallagher (ch) | 30 Oct 20 | 1,575 | 2,756,250 | Purchased by PCA |
| HSBC | James Forese | 29 Oct 20 | 16.25 | 373,718 | Converted from US$. American depositary shares |
| InnovaDerma | Mark Ward | 28 Oct 20 | 69.5 | 269,672 | |
| Abbey | Charles Gallagher (ch) | 2 Nov 20 | 1,575 | 236,250 | Purchased by PCA |
| HSBC | Ewen Stevenson (cfo) | 28 Oct 20 | 320.9 | 118,746 | |
| City of London Investment Group | Rian Dartnell | 28 Oct 20 | 3,920 | 117,587 | |
| Foxtons | Richard Harris | 29 Oct 20 | 34.3 | 74,122 | |
| Altus Strategies | Steven Poulton (ceo) | 28 Oct 20 | 61.5 | 68,771 | Average price |
| Prudential | Alice Schroeder | 29 Oct 20 | 1,915 | 52,653 | Converted from US$. American depositary receipts |
| Coca Cola European Partners | Peter Brickley | 28 Oct 20 | 2,897 | 50,694 | Converted from US$ |
| Audioboom | Michael Tobin | 29 Oct 20 | 170.9 | 48,486 | Average price |
| Foxtons | Ian Barlow | 29 Oct 20 | 32.8 | 32,800 | |
| Coca Cola European Partners | Victor Rufart | 29 Oct 20 | 2,828 | 28,281 | Converted from € |
| Foxtons | Alan Giles | 29 Oct 20 | 32.7 | 18,758 | |
| Metro Bank | Anne Grim | 27 Oct 20 | 62 | 15,500 |
| Sells | |||||
| Company | Director/PDMR | Date | Price (p) | Aggregate value (£) | Comments |
| JD Sport | Peter Cowgill (ch) | 30 Oct 20 | 745.6 | 19,291,522 | |
| Aston Martin | Mahmoud Samy Mohamed Aly Elsayed | 29 Oct 20 | 54.6 | 2,048,023 | Sold by PCA |
