Foxtons Group is forecasting a more stable rental market and increased activity in the sales market for the year ahead.

This outlook was published as part of its full-year results for 2023, which saw the estate agency group’s profits decline by 34%, despite a 5% increase in revenue.

Publishing its 2024  trading outlook the estate agency group said that the lettings market supply and demand dynamic has normalised with “increased levels of available rental stock and fewer tenants registering for each available rental property compared to 2023.”

The group, which is one of the largest estate agents in London, says it was expecting the uptick in housing market activity seen at the start of this year to continue into 2024.

Foxtons reported a increase in buyer demand in January and February, largely due to mortgage rates reducing. It says it expects to see further growth in the second half of this year, provided mortgage rates continue to stabilise and pent-up demand is released. 

It points out that it has already seen a 31% year-on-year increase in the value of the under offer pipeline to the end of February. 

Foxtons chief executive officer Guy Gittings says: “2023 was a year in which Foxtons has been fundamentally transformed.” He said the company has been making improvements across the business, including improving technology via its Foxtons Operating Platform.