Foxtons-owned broker Alexander Hall said its revenue jumped 37% to £3.1m in the third quarter of the year, driven by rising home loan refinancing. 

It added that new purchase mortgage revenue “remained stable despite a weaker sales market,” in the three months to the end of September compared to a year ago. 

The broker division added that revenue was up 12% to £7.7m in the first nine months of the year. 

Overall, the London-based estate agency said combined revenue from its sales, letting and broker units rose 3% to £49m in the period. 

Lettings rose 5% to £33.4m, “boosted new deal volumes, alongside rental price growth”. 

However, sales fell 7% to £12.5m, driven by lower market transactions. 

The firm added: “Third quarter buyer activity in London was slower year-on-year, impacted by deals pulled forward to the first quarter ahead of the stamp duty deadline, limited interest rate reductions, and uncertainty around the delayed Budget.” 

Foxtons chief executive Guy Gittins said: “We have delivered another quarter of growth driven by our strategic focus on lettings and its recurring revenues, which helped offset a softer sales environment.  

“Lettings remains the central part of our growth strategy, underpinned by our leading market position and strong landlord proposition.” 

The firm added that rental demand fell by 32% in September compared with August, in line with the slowdown “that typically accompanies the end of summer, in its September Lettings Market Index, also released today. 

However, the study added that average rents in the capital rose 3% in September compared to the previous month, hitting almost £600 a week and marking the highest September figure recorded in four years.