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What was once London’s leading proprietor, Foxtons, is expecting a continuous sales slump the company experienced last year. The London-based estate agent lost as much as 50 percent last year due to the property tax hike and is expected to do lousily this year as an effect of the Brexit vote.

Founded in 1981, Foxtons is an agency based in Notting Hill and over the year garnered enough exposure to climbing at the top and leading London estate agent. It was 2013 when the company boomed and continued to stagger the competition until early 2014. The proprietor is well known for their coffee shop-esque offices and their wonderful fleet of mini cars.

The company’s final quarter sales were down by 40 percent in contrast with its 2015 quarter closing. Foxtons’ sales were estimated to be down a hefty 8 million pounds, from 20 million pounds to 12 million pounds. This made the company’s letting business was unshaken at 13 million pounds, this helped offset any additional damages and sales declinations, but total revenues were down up to 10 percent.

According to the company’s Chief Executive Nic Budden, “(There was a) significant fall in sales volumes immediately following the first quarter of 2016,” and he also noted that “Should current levels of sales activity continue in the short term, it is likely that 2017 volumes will be below those in 2016,”. The company’s shares were down to 10 percent in this year’s early trading, according to the company, total group revenue fell from 150 million pounds in 2015 to 133 million pounds last year.

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Property Industry In London Struggles After Brexit

Foxtons is having trouble coping with the growing property tax, the interest tax, depreciations and amortizations (EBITDA), and is now feeling the tailwind of the most recent vote of the United Kingdom to leave the European Union. The country’s third-largest house builder Taylor Wimpey are also being struck by the lower selling prices in central London, performance and the value of its full-year order book are also falling drastically.

The firm believes that they will able to reach an approximate goal of 25 million pounds earning this year before the interest, taxes, amortization and depreciation last 2016, almost reduced by half of 2015’s 46 million pounds. Recent reports from Begbies Traynor’s specialist revealed that at least 5 companies in the property industry has fallen radically this 2016, and are facing financial distress entering 2017.

Budden said “Looking ahead, we expect trading conditions to remain challenging in 2017,” and that volumes this year will be below of what’s last year’s if the current level of sales activity continues. Chief Executive Budden ended with this note saying, “Our balanced business model provides resilience against sales market cycles and we have a strong balance sheet with no debt.”

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