Foxtons’ pre-tax profit fell 57% to £4.4 million during the first half of 2026 as weaker London sales and disruption following the Renters’ Rights Act weighed on performance.
Group revenue declined 3% to £83.7 million, while adjusted operating profit dropped 29% to £8.9 million and adjusted EBITDA fell 25% to £10.4 million.
Sales revenue was 13% lower against a comparative period boosted by the stamp duty deadline, with political uncertainty, Middle East conflict and higher-than-expected interest rates weakening consumer confidence.
Lettings revenue remained flat after a £3 million reversal of previously recognised contractual income resulting from elevated tenant-led tenancy terminations following the Act’s introduction.
RECURRING REVENUE PROVIDES SUPPORT
Non-cyclical and recurring activities generated 69% of group revenue, up from 65% in the same period last year.
Revenue from ancillary landlord and tenant services increased 17%, property management cross-selling grew 10% and Build to Rent revenue rose 29%.
Financial services revenue climbed 20%, supported by stronger refinancing volumes, improved client retention and increased ancillary income.
Foxtons has implemented annualised savings of £4.5 million, including £3 million from a cost-reduction programme responding to sales market conditions. It has also reviewed its sales operating model to improve productivity and margins at lower transaction volumes.
Net debt increased from £18.2 million to £28.4 million following acquisition spending, lower free cash flow and shareholder returns.
STAMP DUTY REFORM URGED
Announcing half year interim results to the City yesterday Guy Gittins (main picture, inset), Foxtons CEO, said 2026 was likely to be one of the lowest years on record for London housing transactions.
“We urge the new cabinet to prioritise stamp duty reform, which remains the single biggest barrier to home moving—for first-time buyers trying to get on the ladder, for growing families and for those looking to downsize,” he said.
Foxtons expects the disruption from early tenancy terminations to stabilise during the second half.
Gittins said the Renters’ Rights Act is already increasing demand for property management and could accelerate consolidation as landlords seek larger, professional agencies.
The group has expanded into Milton Keynes and Birmingham through two platform acquisitions and says it has a pipeline of further bolt-on opportunities.
Foxtons expects full-year adjusted operating profit of between £17 million and £19 million, with performance weighted towards the second half as lettings seasonality, stabilising terminations and cost savings take effect.
