Foxtons Plans Expansion Beyond London into High-Value Commuter Regions

Foxtons is gearing up to extend its reach beyond the M25, introducing its iconic green Minis, well-dressed sales representatives, and compelling property price assessments to additional towns.

The leading estate and lettings agency in London has disclosed to shareholders and analysts that it aims to boost its expansion efforts into “high-value commuter markets” beyond the capital.

In the past year, Foxtons has made inroads into Reading and Watford by acquiring local agencies in these regions. Chief executive Guy Gittins anticipates further acquisitions in the near future.

This initiative is part of Gittins’s strategy to achieve the ambitious new growth objectives announced recently. He envisions Foxtons boosting its operating profit to £50 million over the next few years, which would more than double the figures projected for 2024.

Sam Cullen, a housing market analyst at Peel Hunt, identified increased acquisitions as the “key driver” of the growth Foxtons seeks. The previous medium-term target, established two years ago, aimed to elevate adjusted operating profits to at least £28 million.

Foxtons stated that the revised target is a reflection of both the significant advancements made thus far and the substantial opportunities that lie ahead.

Since Gittins took over the reins in September 2022, there has been a significant focus on leveraging Foxtons’ extensive data resources and reinstating a dynamic sales culture akin to the early 2000s when he was a trainee.

At the Chiswick headquarters, performance leaderboards are prominently displayed, uplifting music fills the air, and celebratory lights and cheers erupt when a deal is closed—signifying a culture aimed at “celebrating success.”

These changes have positively affected Foxtons’ financial outcomes: market share has grown, with profits from the previous year being more than double those of 2022, while the share price has surged almost 80 percent.

However, the journey has not been without its challenges. Earlier this year, several current and former employees reported to Bloomberg on a disturbing “culture of harassment and bullying” existing in some branches of Foxtons.

Gittins expressed his dismay in March regarding the experiences shared by his colleagues and stated, “We do not tolerate that sort of behavior. Like many companies today, Foxtons is on a journey. While progress has been made, there is still more to accomplish.”

He pledged to invest further in both personnel and corporate culture, which are critical components of the estate agency business, aiming to enhance Foxtons’ competitive edge and foster ongoing growth.

“We have more than doubled our profit since 2021, and our goal is to double it once again in this growth phase,” Gittins announced during a capital markets day at the London Stock Exchange.

“Our strategy is clear and scalable, supported by a leading operational framework and a dedication to delivering exceptional results for our clients through dependable, high-quality service. I’m enthusiastic about the opportunities that lie ahead.”

On Wednesday, Foxtons’ shares saw a decrease of ⅓ pence, or 0.5 percent, ending the day at 65 pence.