Foxtons sees lower full-year earnings after property sales slow

LONDON (Reuters) - Shares in British real estate agent Foxtons fell nearly 4 percent in early trading on Tuesday after it said it expected full-year earnings to fall slightly, reflecting the cooling of London's red-hot property market.

Foxtons, which has become a symbol of the British capital's property boom, said it expected full-year earnings to be in region of 46 million pounds, down from 49.6 million, after it posted a 12 percent fall in residential property sales in the fourth quarter.

The company said it saw solid growth in the rental market, with a 7.7 percent rise in lettings revenue in the quarter, but it was enough to offset a 25.7 percent fall in commission on property sales against the same period a year ago when the market was booming.

Foxtons said it did not expect a recovery in the property market until after Britain's general election in May.

Shares in the company fell nearly 4 percent to 155 pence in early trading, and were 2.9 percent lower at 155.5 by 0826 GMT.

Numis Securities analyst Chris Millington, who has a "buy" rating on the stock, reduced his earnings forecast by 3 percent.

"Whilst uncertainty remains high in the short term ahead of the election, the longer term attractions of the business remain compelling and we therefore maintain our positive stance and argue that when the London market recovers, Foxtons will be highly geared to the upside," he said.

(Reporting by Li-mei Hoang; editing by Jason Neely, editing by Louise Heavens)