FOXTONS HIT HARD FOLLOWING STAMP DUTY REFORMS
Following a 12% fall in its turnover during the final three months of 2014, prominent estate agent Foxtons saw its share price fall nearly 4% during early trading on Tuesday.
Foxtons, whose performance is usually an indicator of the property market in the capital, predicts that its activity is unlikely to pick up until after the general election in May.
This news underlines the fact it is not just buyers that have been hit hard by the Chancellor’s stamp duty reforms, which now forces buyers to pay 12% on properties worth more than £1.5m.
The political shakeup caused a sales rush before the legislation came into force, while many homeowners are delaying moves during these uncertain times.
A YEAR OF CONTRAST
Foxtons issued a profit warning back in October. Its shares are now at their lowest price since the company was floated on the stock market in September 2013 at 230p per share.
On the same say, shares rose to 267p, a same day increase of 16.1%, but in stark contrast, share prices have fallen nearly 50% from the same period last year.
Its fourth quarter sales commission also dropped 25%, which was blamed on both the market slowdown and tighter mortgage lending.
The situation could have been worse if its lettings business, which makes up half of group revenue, had not seen a 7.7% growth year on year, exceeding its 6% expectation.
WEALTH AND TAX PLANNING WITH FIDUCIA
With the new legislation clearly affecting the London housing market, an increasing number of people are considering legally compliant stamp duty mitigation to ensure they can buy the property they want.
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