Foxtons says it bought rival agency because of its lettings book

Foxtons says the reason behind its purchase of rival London agency Douglas & Gordon was to get its lettings book.

The deal, for some £14.25m, will see both Foxtons and D&G operate in the capital under their existing brands. 

Foxtons says: "Having been established in 1958, Douglas & Gordon is a high quality London estate agent with a well-respected brand and large lettings business delivering around 65 per cent of [its] total revenues from 2,900 tenancies. The directors believe that D&G will fit well with Foxtons' existing business model due to its high level of customer service and compliance, strong fee integrity, well-established landlord relationships and similar customer-focused and results-based culture."

This deal follows last year’s acquisition of smaller operators London Stone, Pillars Estates and Aston Rowe.

In its most recent statement to shareholders prior to the D&G acquisition, Foxtons committed to build is lettings armoury through takeovers.

Foxtons CEO Nic Budden comments: "Douglas & Gordon is a business we have long admired and respected. Like us, it is a business with intimate knowledge of the London market and a culture built around delivering results for customers making it an excellent strategic fit.”

Foxtons is to release its 2020 performance figures a week today, and given the poor showing of the London sales market during the pandemic, the lettings side of the business is expected to dominate.