Foxtons Group plc (LSE:FOXT) reported a 5% increase in revenue for 2025 to £172.5m, with growth recorded across its lettings, sales and financial services divisions. Adjusted operating profit remained broadly unchanged, however, as higher wage costs, tax increases and inflationary pressures offset the improvement in revenue.
The company’s business model continues to be anchored by lettings, which now account for around 67% of total revenue. This segment provides a more stable and recurring income stream compared with the cyclical property sales market. Foxtons currently manages a portfolio of more than 32,000 tenancies, with a rising proportion of fully managed properties that typically generate higher margins.
During the year the group continued to execute its “buy and build” strategy aimed at expanding beyond its traditional London base. The integration of the Imagine acquisition in Watford progressed during the period, while additional platform acquisitions in Milton Keynes and Birmingham broadened the company’s presence in key regional markets. Management expects these moves to support further organic growth, operational synergies and additional bolt-on acquisitions.
Foxtons is also pursuing cost efficiencies and operational improvements. The company plans to reduce headquarters space, generating savings from 2026, while continuing to deploy AI-enabled systems to improve productivity. At the same time, management is repositioning its London sales business, which has faced tougher market conditions.
Looking ahead, the group believes the upcoming Renters’ Rights Act could accelerate a shift toward larger, more professional letting agents. Foxtons expects this potential “flight to quality” to create medium-term growth opportunities across lettings and related services.
The company’s strong financial performance and shareholder-focused actions, including share buybacks, contribute to its positive outlook. Technical indicators point to strong upward momentum in the share price, though some signals suggest the stock may be approaching overbought levels. Valuation metrics remain supportive, indicating potential for further growth.
More about Foxtons
Foxtons Group plc is a London-based estate agency founded in 1981 and widely recognised as one of the capital’s best-known property brands and the UK’s largest lettings agency network. The company operates branches across London as well as selected commuter and regional markets, offering residential lettings, property sales and financial services. Its strategy increasingly centres on expanding stable, recurring income from lettings operations.
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