Trading Update
Foxtons Group plc has experienced a challenging trading period, with the sales market impacted by political uncertainty and higher interest rates, leading to lower transaction volumes. The lettings market saw approximately £3m of revenue reversed due to increased tenancy terminations following the Renters' Rights Act, though the company anticipates medium-term growth opportunities from this legislation. Financial Services revenue grew due to stronger refinance and resilient mortgage revenues. The Group expects first-half adjusted operating profit to be £8.5m, down from £12.3m in the prior year, and forecasts full-year adjusted operating profit between £17m and £19m, with £4.5m in annualised cost savings achieved.
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16 July 2026 - Foxtons Group plc (LSE: FOXT) ("the Group" or "Foxtons") provides the following trading update ahead of the announcement of its half-year results on 30 July 2026.
Since the Group's Q1 trading update on 23 April 2026, trading has been adversely impacted by the prolonged downturn in the sales market, as well as short-term volatility in the lettings market following the introduction of the Renters' Rights Act ("RRA") in May.
Lettings
Following the introduction of the RRA, which abolished fixed tenancy terms and increased tenant flexibility to terminate tenancies, the Group experienced elevated levels of tenancy terminations during May and June, particularly in student rentals. This resulted in the reversal of approximately £3m of previously recognised revenue that had been contractually due.
Despite some short-term volatility whilst the lettings market transitions to the new legislative framework, the Group remains confident that the RRA will create growth opportunities over the medium term through increasing demand for professional lettings and property management services.
Sales
The sales market has become more challenging, as domestic political uncertainty and conflict in the Middle East have contributed to weaker consumer confidence and a higher-than-expected interest rate environment, resulting in lower market transaction volumes. In anticipation of a prolonged lower transaction volume environment, the Group has taken proactive steps to align the Sales business with market conditions, with further operational and organisational changes under consideration.
Financial Services
Financial Services delivered revenue growth driven by stronger refinance volumes, increased ancillary cross-sell, and resilient new purchase mortgage revenues.
Outlook
Notwithstanding 2026 being a year of transition for the sector due to the introduction of the RRA, the lettings market remains resilient, reinforcing the Group's focus on this market. The sales market is expected to remain subdued amid ongoing political uncertainty and a challenging macroeconomic backdrop.
The Group has delivered £4.5m of annualised cost savings in H1. This includes £3.0m from a proactive cost-reduction programme in response to sales market headwinds, and builds on £1.5m of savings delivered from the January 2026 HQ relocation which largely mitigated National Insurance cost increases and other inflationary pressures.
Against a strong H1 2025 comparator, that was boosted by elevated sales activity ahead of the March 2025 stamp duty deadline, the Group expects to report H1 2026 adjusted operating profit of approximately £8.5m (H1 2025: £12.3m). Full year adjusted operating profit is anticipated to be H2 weighted, reflecting the seasonality of Lettings revenues and a normalisation in tenancy termination levels. As a result, we expect full year 2026 Group adjusted operating profit to be in the range of £17m-£19m.
The Group will be able to provide more detail when it announces its half-year results on 30 July 2026.
Founded in 1981, Foxtons is London's leading estate agency and largest lettings agency brand, with a portfolio of over 32,000 tenancies. The Group operates from a network of branches in London and complementary, high growth markets, offering a range of residential property services across three business segments: Lettings, Sales and Financial Services.
The business has four strategic priorities:
- Lettings acquisitions: acquire, integrate and service high-quality lettings portfolios.
- Financial Services growth: improving scale and cross-sell to drive revenue growth.
To find out more, please visit www.foxtonsgroup.co.uk
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.