(Reuters) -Foxtons, London's largest estate agency, said on Thursday it expects the lettings market to remain resilient in 2024, while homebuyer demand had good levels of growth in recent weeks on the back of easing mortgage rates.
A surge in demand for rental properties in London led to a supply shortage and a sharp rise in rents, boosting the lettings business of estate agents, especially at a time when home sales transactions remained subdued for most of last year.
"As lettings supply and demand dynamics have largely normalised, rents are expected to stabilise and remain at historically elevated levels," the company said in a statement.
The London-listed firm said revenue from its lettings business, which accounts for about 70% of the group turnover, jumped 16% to a record 100 million pounds ($127.2 million) in the year ended Dec. 31.
Foxtons (LON:FOXT)' lettings income improved after the firm bought two smaller rivals - Gordon & Co in South London and Stones Residential in North London - in 2022.
The company said it expects 2023 revenue and adjusted operating profit of about 147 million pounds and 14 million pounds, respectively, both ahead of market estimates.
($1 = 0.7861 pounds)