Foxtons sales revenue in the third quarter of this year was up 36% to £13.5m, the highest Q3 revenue since 2015.

The estate agency reported that transaction volumes in the quarter were 34% higher than the prior year, compared with the wider market which saw transaction volumes grow around 13% against 2023’s levels.

Year-to-date revenue was up 31% to £35.1m, reflecting year-to-date market share growth of 25%.

At the end of September, the under-offer pipeline was 23% higher than the prior year, reflecting double-digit growth in new sales agreed over the course of Q3, which Foxtons expects to support year-on-year revenue growth in the fourth quarter.

Meanwhile, it reported that its lettings revenue totalled £31.6m, which was driven by record renewals revenues due to high numbers of tenancies coming up for renewal in the quarter.

Foxtons says operational improvements have driven double-digit growth in new business volumes through the year, and in Q3 2024 this helped to offset the expected lower renewal volumes.

Ludlow Thompson, which Foxtons acquired in November 2023, delivered £1m of incremental revenue in the quarter.

On a year-to-date basis revenue was up 3% to £84.0m, including £3.1m of incremental acquisition revenues.

Elsewhere, the estate agency’s financial services revenue, which come from its mortgage broker Alexander Hall, was broadly flat at £2.3m and up 3% year-to-date to £6.8m.

The third quarter saw increased levels of lower value product transfer mortgages which impacted average commission levels, but this was mostly offset by increased adviser productivity as operational upgrades take effect.

Foxtons highlights that recurring refinance activity continues to underpin revenue, with further new business growth expected as new purchase volumes improve.

Foxtons chief executive officer Guy Gittins says: “We have delivered our third consecutive quarter of growth, with Q3 revenues up 8% to £47.4m, and year-to-date revenue up 10% to £125.9m, as the momentum we have built across the business has been maintained, and we continue to cement our position as London’s largest lettings and sales agency brand.”

“Continued market share growth, enabled by a focus on improving training, negotiator tenure, culture and our data and technology capabilities, and supported by early signs of market recovery, drove Q3 Sales revenue up 36%. This growth was supported by a resilient performance in Lettings, which continues to provide a valuable stream of recurring and non-cyclical revenues.”

“We enter the final quarter with optimism: our sales agreed pipeline is 23% higher than this time last year, sales volumes in our markets continue to recover, and we are well placed to continue to unlock the value within our business.”

“Our balance sheet and cash flow remain strong which will continue to support our growth and value creation initiatives, including both organic investments and synergistic lettings acquisitions. We are on-track to deliver increased profitability in 2024, in line with consensus, and we continue to make progress towards our medium-term target of £25m to £30m adjusted operating profit.”