Rival big-hitter agencies slug it out for lettings dominance

Two big-hitter agencies are slugging it out for lettings dominance in London, with both making announcements in a bid to cement their positions.

In a trading statement Foxtons - which calls itself “London's leading estate agency” - says it’s invested £10.6m in lettings acquisitions in the past year. 

It tells shareholders that it successfully integrated the Douglas & Gordon lettings portfolio in early 2022 and disposed of the loss-making sales business, “delivering significant earnings growth”. Later in the year it acquired two further lettings portfolios, adding 2,500 tenancies. 

And it says it “will continue to target further acquisition opportunities as part of its strategy to deliver attractive total returns on invested capital and improve the resilience of its revenues.”

Looking ahead Foxtons believes 2023 will be more challenging but adds that “lettings revenues are expected to remain resilient despite these headwinds.”

Foxtons new chief executive Guy Gittins, presenting his first trading statement in the role, comments: "Much has been achieved in a short period and it is great to see some of the team's hard work reflected in the 2022 results. The economic outlook for the year ahead remains uncertain, but we have a growing portfolio of non-cyclical revenues, and a refreshed operational strategy to rebuild Foxtons' estate agency DNA and return the business to its position as London's go to estate agency."

Meanwhile Dexters has announced that it’s acquired the high-end London agency Marsh & Parsons from LSL Property Services to create, in total, what it calls “a £180m 150-office estate agent – London’s largest estate agent chain.”

The £29m deal adds 30 offices and over 300 staff to Dexters’ portfolio, although the Marsh & Parsons name will remain.

The acquisition means that Dexters now has some 37,000 landlords on its books.

Andy Shepherd, chief executive of Dexters, says: “Dexters has acquired Marsh & Parsons because we admire the business which is a well-established London brand. We plan to double the size of Marsh & Parsons, developing a market leader that stands apart from the competition.” And Dexters chairman Justin King adds: “The group now has more local offices and a greater presence than any other estate agency in London.”