Estate agent Foxtons' total group revenue for the quarter to the end of September was £37.5m (2015: £43.5m) with revenue for the nine months ended 30 September totalling £106.3m (2015: £114.5m).
Sales revenue in Q3 was £12.2m (2015: £18.5m) reflecting a continuation of reduced activity in the London property sales market.
Lettings revenue, whilst also reflecting lower levels of new tenant activity, benefited from Foxtons strong renewals book and grew modestly in the third quarter to £22.8m (2015: £22.6m).
Foxtons says: "The response to the marketing initiatives which we launched to enhance our lettings business has been encouraging, in particular, the new business which we have secured from the institutional private rented sector (PRS).
"Our zero lettings campaign, which commenced in August, has been well received and has been extended to our new branches in Vauxhall and Peckham.
"Continued tight cost control in Q3 has improved margins and we expect to be broadly in line with full year market expectations. Foxtons remains highly cash generative with no debt.
"Leveraging our leading technology, we launched a new 'MyFoxtons', online portal in September, which gives customers complete visibility on the entire sales and lettings processes, without compromising on the high-touch, personal service they receive from Foxtons agents. Customer feedback so far has been very positive. " During the year, Foxtons opened seven new branches in Loughton, Sutton, New Malden, Fulham, Maida Vale and most recently in Vauxhall and Peckham, increasing the network size to 65 branches in total.
The group is committed to open two more branches in Q1 2017 in outer London.
Chief executive Nic Budden said: "The long term fundamentals of the London property market remain very attractive and represent a huge opportunity for growth with nearly £3bn in total sales and lettings commissions on 2015 volumes. We have built Foxtons to withstand sales market cycles with our lettings revenue comprising over half the business. We are pleased with the response we have seen to the strategic initiatives which we have implemented to grow our lettings business, and also the successful launch of the new MyFoxtons portal. "