Foxtons Group PLC anticipates its full-year adjusted operating profit to be between £17 million and £19 million, a notable decrease from the £22.2 million reported in 2025. This downturn is attributed to a challenging sales market, marked by lower transaction volumes stemming from weaker consumer confidence and higher-than-expected interest rates. The company also experienced a negative impact from the recently introduced Renters' Rights Act (RRA).
The RRA led to an increase in tenancy terminations, especially in student rentals during May and June, resulting in a reversal of approximately £3 million in previously recognized contractual revenue. Despite this, the lettings market is expected to remain resilient in the medium term, with Foxtons anticipating that the RRA will ultimately boost demand for professional lettings and property management services.
In response to the market pressures, Foxtons implemented cost-saving measures, achieving £4.5 million in annualized savings during the first half of the year. This included £3 million from an efficiency program and additional savings from relocating its headquarters. The company also made proactive adjustments to its Sales business to align with current market conditions.
First-half adjusted operating profit is projected to be around £8.5 million, down from £12.3 million in the prior year. Despite the subdued sales market, Foxtons' Financial Services business saw revenue growth driven by stronger refinance volumes, increased cross-selling of ancillary services, and resilient new purchase mortgage revenues. The company's shares were down by as much as 10.5% following this announcement.
