Foxtons (LSE:FOXT) reported group revenue of £39.6m for the first quarter of 2026, representing a 10% decline year on year. Growth in lettings revenue of 5%, alongside a slight increase in financial services, was outweighed by a sharp 35% drop in sales revenue, reflecting a challenging comparison period and softer buyer demand. In response, the company continues to prioritise its lettings-focused strategy, completing two regional acquisitions, reallocating staff toward lettings operations, and implementing at least £3m in annualised cost savings to help preserve margins. It is also positioning itself to benefit from anticipated regulatory changes under the Renters’ Rights Act.
Lettings Strength Supports Stable Outlook
Management said trading remains consistent with expectations, with no change to full-year guidance. The performance is underpinned by the relative stability of lettings and financial services, which together now contribute more than two-thirds of total revenue. By leveraging its existing platform to integrate bolt-on acquisitions and enhance efficiency, particularly in a weaker sales environment, Foxtons aims to grow market share while maintaining operational discipline and delivering long-term value.
Financial Progress Balanced by Market Risks
Foxtons’ outlook is supported by improving fundamentals, including a return to profitability since 2022, reduced leverage, and positive cash generation. The company also trades on a relatively low price-to-earnings ratio and offers a dividend, making it potentially attractive from a valuation perspective. However, technical indicators suggest weak momentum, with the stock trading below key moving averages and showing negative MACD signals. Additional risks include ongoing sales weakness, cost and margin pressures, and short-term working capital challenges, despite expectations for growth in 2026.
More about Foxtons
Foxtons Group plc is a London-focused estate agency and the UK’s largest lettings agency brand, managing more than 32,000 tenancies. The business operates across Lettings, Sales, and Financial Services, with a strategic emphasis on generating recurring, non-cyclical income from lettings. Its operations are supported by technology-driven systems and targeted acquisitions in expanding regional markets such as Birmingham and Milton Keynes.
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