Foxtons Lettings Revenue Falls 7% After Renters' Rights Act

Editor's note: This brief was summarised by The Property AI Team from a report by The Negotiator. Read the original article for full details.

Foxtons Lettings Revenue Falls 7% After Renters' Rights Act

Foxtons has revealed that the introduction of the Renters' Rights Act pushed lettings revenue down at the agency. A third quarter trading update showed lettings revenue declined by £2.3million, or 7%, to £31.1million, after a £2.7million impact from elevated tenant-led early terminations following the introduction of the Renters' Rights Act on 1st May 2026.

Before this impact, revenue was marginally ahead year-on-year, including £1.0million of incremental revenue from acquisitions. Foxtons said that, consistent with expectations set out in its interim results, early terminations eased throughout the third quarter and October, indicating that elevated activity reflects a short-term transition following the introduction of the reforms.

Sales Revenue Also Down

Third quarter sales revenue also declined by £600,000, or 5%, to £12million in what Foxtons described as a challenging sales market. Like-for-like transaction volumes remained broadly stable, but average revenue per transaction declined 8%, reflecting a mix weighted towards lower-value properties, as higher mortgage rates impacted buyer affordability at higher price points.

Year-to-date revenue declined by £4million, or 10%, to £35.5million. Market share has been maintained following the downsizing of the sales business in the first half of the year to protect profitability, Foxtons said. The group said it is trading in line with management's expectations and expects full-year adjusted operating profit to be within the £17million to £19million range guided in July.

CEO Comments On RRA And Acquisitions

Chief Executive Officer 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. We continue to see longer-term benefits from the RRA, notwithstanding some short-term volatility."

Gittins said the group continued to execute its growth strategy, completing four acquisitions in September to scale its Birmingham operations and strengthen its positions in Watford and Reading. He added that while last week's Budget provided more details on the Government's Your First Home scheme, it shouldn't be limited to new builds, warning that stamp duty remains the biggest barrier at every price point.