Foxtons (LSE:FOXT) reported first-half 2026 revenue of £83.7 million, down 3% from a year earlier, while adjusted operating profit declined 29% to £8.9 million as weaker London residential sales and the introduction of the Renters’ Rights Act weighed on performance.
The legislation led to a rise in tenant-initiated tenancy terminations, resulting in the reversal of approximately £3 million of previously recognised lettings revenue. Despite lower free cash flow and an increase in net debt, driven by acquisitions and shareholder distributions, recurring and non-cyclical income continued to strengthen, accounting for 69% of total revenue. The company maintained its interim dividend at 0.24p per share and expanded its revolving credit facility to provide additional flexibility for future growth.
Cost Savings and Acquisitions Support Long-Term Strategy
During the period, Foxtons achieved £4.5 million in annualised cost savings while continuing to expand its presence in the Build to Rent market. The group also increased revenue from ancillary lettings services and cross-selling initiatives.
Strategic acquisitions in Milton Keynes and Birmingham strengthened Foxtons’ platform for future expansion, supporting its strategy of increasing market share through targeted bolt-on acquisitions alongside organic growth.
Management Expects Stronger Second Half
Foxtons believes the Renters’ Rights Act will ultimately favour larger estate agencies by encouraging further consolidation across the sector. Management expects trading to improve during the second half of 2026 as the impact of tenant-led terminations eases and cost-saving initiatives deliver a greater benefit.
The company reaffirmed guidance for adjusted operating profit of between £17 million and £19 million for the full year, with earnings expected to be weighted toward the second half.
Investment Outlook
Foxtons continues to benefit from a stronger financial position following its return to profitability in recent years, supported by a growing base of recurring lettings income and an attractive valuation that includes a relatively low price-to-earnings ratio and a dividend yield of around 3%. However, weaker technical indicators, softer residential sales activity and ongoing cost and working capital pressures continue to present near-term challenges despite management’s positive outlook for the remainder of 2026.
About Foxtons
Foxtons Group plc (LSE:FOXT) is a London-focused estate agency offering residential lettings, property sales and financial services. The company has increasingly focused on expanding its recurring lettings income, reducing reliance on the more cyclical residential sales market.
Alongside its core operations, Foxtons is growing its presence in the Build to Rent sector while expanding complementary landlord and tenant services. The group also continues to pursue a strategy of organic growth supported by selective acquisitions to broaden its geographic footprint and strengthen its position within the UK property market.
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