London estate agent Foxtons has issued another downbeat trading update, citing a “very challenging” market as the reason for sales falling in the first quarter of 2018.

In the first quarter of 2018 group revenue stood at £24.5m compared to £28.7m in the first quarter of last year. Sales revenue dropped to £8.2m from £11.1m at the same point in 2017, Alongside that, lettings revenues fell to £14.3m from £15.5m, while revenue at its Alexander Hall mortgage group nudged down to £2m from £2.1m.

In a statement to the London Stock Exchange the group said: “Foxtons entered 2018 with a lower sales pipeline compared to the same point last year and this resulted in lower levels of activity in the quarter. Performance in lettings was impacted by a slow start to January and the timing of Easter, which had a negative effect on revenue.

“Whilst the sales pipeline has begun to improve it remains below where it was this time last year. The performance of our lettings business improved towards the end of the quarter and throughout April.”