Estate agents Foxtons has said rent hikes and demand for tenants to get on the property ladder helped drive its revenue to £147m for the full year.

In an update this morning, the occasionally lightning-rod high street agency said the figure was up five per cent on last year and ahead of market expectations.

Amid a period of high inflation, landlords have been passing on price increases to their tenants, or selling up to avoid paying high rates on their mortgage.

This has led to limited supply, especially in the capital.

Foxtons said lettings, which represents 70 per cent of its group revenue, grew by 16 per cent and delivered over £100m revenue for the first time in Foxtons’ history.

“Lettings is expected to remain resilient in 2024 with the business continuing to display strong recurring and non-cyclical characteristics,” the board said today.

“As lettings supply and demand dynamics have largely normalised, rents are expected to stabilise and remain at historically elevated levels, whilst improvement in the supply of available rental properties provides a good opportunity to deliver further market share growth.”

They added: “In Sales, the group entered 2024 with an under-offer pipeline significantly ahead of the prior year despite weaker market conditions, which should support a good level of year-on-year revenue growth in Q1.

“Furthermore, continuing to deliver the sales market share levels achieved in H2 2023 is expected to drive further Sales revenue growth through 2024.”

Guy Gittins, the firm’s CEO, said: “We have delivered a year of market share growth and have ended the year with revenue and adjusted operating profit ahead of market expectations; our operational upgrades and investment in fee earners, training, data and brand, coupled with a return to driving innovation in the industry, are now consistently delivering material benefits to our competitiveness and market positioning, helping us to end 2023 as the UK’s fastest growing large lettings and sales agency brand.

“Our strategy to prioritise non-cyclical and recurring revenues has driven revenue and profit growth, despite a weaker sales market, and in contrast to prior years. This, combined with the operational progress and significant market share gains made to date, gives me confidence that our strategy is working, and we enter 2024 focused on delivering our strategic priorities and medium-term profit ambitions.”