Foxtons Group plc (LSE:FOXT) reported a 6% decline in third-quarter revenue to £45.9 million, compared with £49.0 million a year earlier, as changes to tenancy regulations and lower property sales revenue affected its performance. The company maintained its full-year adjusted operating profit guidance of £17 million to £19 million.
Revenue for the nine months ended 30 September 2026 fell 4% to £129.6 million from £135.1 million, with declines in Lettings and Sales partly offset by growth in Financial Services.
Lettings Revenue Declines Following Regulatory Changes
Third-quarter Lettings revenue decreased 7% to £31.1 million, including a £2.7 million impact from elevated tenant-led early terminations following the introduction of the Renters’ Rights Act on 1 May 2026.
The legislation allows tenants to end agreements with two months’ notice, resulting in reversals of previously recognised revenue where tenancies ended before their original contractual expiry dates.
Foxtons said early termination activity moderated throughout the third quarter and October. Excluding the regulatory impact, quarterly Lettings revenue increased marginally year-on-year.
Nine-month Lettings revenue declined 3% to £85.8 million, including a £5.7 million impact from early terminations. Excluding this effect, revenue increased £3.5 million, supported by acquisitions, Build to Rent activity and additional property management services.
Property Sales Revenue Falls 10% Year to Date
Sales revenue declined 5% to £12.0 million in the third quarter, while nine-month revenue fell 10% to £35.5 million.
Foxtons reported broadly unchanged like-for-like transaction volumes during the quarter, although average revenue per transaction decreased 8% as sales shifted towards lower-value properties.
The company attributed reduced activity in London’s property market to higher borrowing costs, consumer confidence and economic uncertainty.
Foxtons maintained its market share in its core markets following a reduction in its Sales operations during the first half. Its wider cost reduction programme delivered £4.5 million in annualised savings.
Financial Services Revenue Rises 9% Over Nine Months
Financial Services revenue declined 7% to £2.9 million in the third quarter, reflecting smaller average mortgage values.
However, revenue for the first nine months increased 9% to £8.3 million, supported by higher refinancing conversion rates and increased sales of ancillary financial products.
Four Acquisitions Expand Regional Lettings Operations
Foxtons completed four acquisitions in September, expanding its operations in Birmingham, Watford and Reading.
The company expects the acquired businesses to generate returns above its 20% return on invested capital target through operational integration and cost efficiencies.
Foxtons also reported a pipeline of additional Lettings acquisition opportunities as it continues expanding its recurring revenue operations.
Full-Year Profit Expectations Unchanged
Foxtons confirmed that trading remains in line with management expectations and reiterated its forecast for adjusted operating profit of £17 million to £19 million in 2026.
The company plans to continue expanding its Lettings portfolio through acquisitions and organic growth while pursuing operational efficiencies and technology investment, including artificial intelligence.
More About Foxtons
Foxtons Group plc (LSE:FOXT) provides residential property services across Lettings, Sales and Financial Services. Founded in 1981, the company operates across London and regional UK markets, managing a portfolio of more than 33,000 tenancies.
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