Foxtons Group Plc has seen revenue from advising on home sales plunge, the latest sign of the downturn gripping the London housing market. The estate agent reported that sales fees dropped 13%, reflecting weaker transaction volumes and price pressures across the capital.

The decline underscores a broader slowdown in London's property sector, where high borrowing costs and economic uncertainty have deterred buyers and sellers. Foxtons, a bellwether for the prime central London market, said the reduction in sales revenue highlights the challenging environment facing agents.

Analysts note that the 13% fall in sales fees signals a sustained rut rather than a temporary blip. With mortgage rates remaining elevated and affordability stretched, the London housing market shows few signs of immediate recovery. Foxtons' performance is being closely watched as an indicator of sentiment in the UK's most expensive property market.

The company's lettings business provided some offset, but the sales division's weakness dominates the outlook. Investors are monitoring whether Foxtons can adapt its cost base to the new market reality, as the 13% revenue drop raises questions about profitability thresholds in a prolonged downturn. Market observers suggest the rut may persist through 2024 unless interest rates ease significantly, making Foxtons' strategic response critical for its share price trajectory.