Foxtons maintains profit outlook despite weaker Q3 revenues

5th Nov 2026 13:02

(Sharecast News) - Foxtons maintained its full-year profit guidance on Thursday despite reporting a 6% drop in third-quarter revenues, as weaker property sales and disruption following the introduction of the Renters' Rights Act continued to weigh on trading.

The estate agency group said it remained on track to deliver adjusted operating profit of £17m-19m for 2026, in line with the guidance issued in July.

Group revenue fell to £45.9m in the three months to 30 September from £49m a year earlier, while revenue for the first nine months declined 4% to £129.6m from £135.1m.

Lettings revenue dropped 7% to £31.1m in the quarter, reflecting a £2.7m impact from elevated early tenancy terminations following the introduction of the Renters' Rights Act in May. Excluding this effect, revenues were marginally ahead of last year.

Foxtons said early terminations had eased throughout the third quarter and into October, suggesting that the disruption was temporary.

Meanwhile, sales revenue fell 5% to £12m, with transaction volumes broadly stable but average revenue per transaction down 8%, reflecting a shift towards lower-value properties as higher mortgage rates continued to constrain affordability. Financial services revenue declined 7% to £2.9m.

The company said it had delivered £4.5m in annualised cost savings as part of a restructuring programme, while four acquisitions completed in September expanded its presence in Birmingham, Watford and Reading.

Chief executive Guy Gittins said: "We delivered a resilient performance in Q3 despite a challenging market backdrop. Lettings traded broadly in line with our expectations, with the initial disruption following the introduction of the Renters' Rights Act moderating through the quarter and re-letting activity remaining robust."

Gittins also called for government support for first-time buyers to extend beyond newly built homes, arguing that stamp duty remained a major obstacle to housing market activity.

Foxtons said it remained focused on expanding its recurring lettings revenues through acquisitions, improving productivity and investing in technology, including AI.

Shares were up 1.8% at 36.6p by 1205 GMT.

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