Foxtons Group has reported year-on-year revenue growth in both the third quarter and year-to-date as its lettings business continued to offset a subdued London sales market.
In a trading update yesterday Foxtons said group revenue rose 3% to £49 million in the three months to September, with lettings contributing £33.4 million – up 5% on the same period last year – and financial services up 37% to £3.1 million. Year-to-date revenue increased 7% to £135.1 million.
Non-cyclical and recurring revenues accounted for 71% of total group income, helping to mitigate the impact of reduced consumer confidence and uncertainty surrounding the delayed Autumn Budget.
Sales revenue fell 7% to £12.5 million in the quarter, with Foxtons citing lower transaction volumes and buyer hesitancy as some purchasers adopted a “wait and see” approach ahead of the Budget.
LETTINGS GROWTH
The company said its lettings growth was supported by operational improvements, stronger portfolio retention, and continued rental price growth, alongside contributions from acquisitions in Reading and Watford.
It also highlighted the resilience of its refinance-led financial services division, which continues to deliver non-cyclical income.
As part of its cost-optimisation strategy, Foxtons is progressing plans to relocate its head office in early 2026, expected to generate “meaningful” cost savings. A further £3 million share buyback programme was launched in September, taking total repurchases this year to £4.3 million.
Full-year adjusted operating profit is expected to be in the range of £21.5 million to £23.2 million, broadly in line with last year’s £21.6 million.
STRATEGIC FOCUS
Chief executive Guy Gittins (main picture, inset), said: “We have delivered another quarter of growth driven by our strategic focus on lettings and its recurring revenues, which helped offset a softer sales environment.
“Lettings remains the central part of our growth strategy, underpinned by our leading market position and strong landlord proposition.”
BUDGET UNCERTAINTY
But he added: “Macroeconomic uncertainty and speculation surrounding the delayed Autumn Budget has resulted in a subdued sales market as some buyers adopt a ‘wait and see’ attitude.
“There remains significant pent-up demand in the London volume market and we believe market conditions will improve once there is better clarity following the Budget, providing a more positive backdrop as we execute against our growth strategy.
“Looking ahead, we remain confident about the medium term and our ability to execute against the strategy we set out at June’s Capital Market Event.”
Foxtons said it expects its lettings business to remain stable for the remainder of the year, while sales are likely to stay subdued until after the Autumn Budget.
