This morning's news that Foxtons are reporting a large drop in profits does not come as much of a surprise to the housing sector.

The cause is largely a slowdown in the housing market in London - where property prices are falling. Experts expect house prices across the country to remain stagnant for some time: Arguably a long-overdue re-adjustment of inflated property prices?

Foxtons are also preparing for new legislation that is expected to prevent fees that are currently charged to tenants - which they expect will hit their lettings business hard.

Estate agent chain Foxtons has reported a slump in profits as it warns of a London housing market near historic lows.