Stamp duty hike hits Foxtons profits as they plummet to £25m

Foxtons Profits

Sales handled by Foxtons fell by a quarter in 2016 because of higher stamp duty on top homes, the estate agent will report this week.

The London-based agent is set to reveal that profits slumped to £25 million from £43 million last year.

Its sales have dried up since the first quarter of last year when a huge number of London properties changed hands in the capital ahead of the stamp duty overhaul.

Some analysts say the stamp duty hikes on more expensive homes have been counter-productive because Treasury revenues from the tax will fall overall at the top end.

The then Chancellor George Osborne announced a shake-up of the tax in 2014 which resulted in the rate for properties worth more than £1.5 million rise to 12 per cent.

Countrywide – which owns 55 estate agency brands – will meanwhile say profits fell to £56 million from £86 million last year, according to broker Peel Hunt.

Carol Lewis

Carol Lewis is a respected property journalist with an enthusiasm for anything to do with property. She is the senior member of the Estate Agents London News journalist team but also writes for other respected magazines and newspapers. Her background is in property, investments and video production. Carol has worked on publicity campaigns for a large number of organisations but now runs this not-for-profit blog. Her main aims are to educate the public and drive up standards in estate agency.

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