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

Foxtons Reports £3m Revenue Hit from Renters’ Rights Act

Foxtons has reported a reversal of approximately £3 million in previously recognised revenue following the introduction of the Renters’ Rights Act. The estate agency cited elevated levels of tenancy terminations, particularly in student rentals, as the main factor behind this impact.

A trading update released ahead of Foxtons’ half-year results announcement on 30 July 2026 revealed the early effects of the new rental reforms. The company stated that the reversal of revenue was due to contractually due sums that were no longer recognised after the tenancy terminations in May and June.

Foxtons’ share price initially fell on the news before recovering some of the losses. The agency noted that the lettings market is experiencing short-term volatility as it transitions to the new legislative framework. Despite this, Foxtons expressed confidence that the Renters’ Rights Act could create growth opportunities in the medium term by increasing demand for professional lettings and property management services.

Challenging Sales Market

In its update, Foxtons also reported that the sales market has become more challenging. The company attributed this to domestic political uncertainty, conflict in the Middle East, and a higher-than-expected interest rate environment, all of which have contributed to lower transaction volumes. Foxtons has taken steps to align its sales business with these market conditions and is considering further operational and organisational changes.

Since its first quarter trading update in April 2026, Foxtons said trading has been adversely affected by the ongoing downturn in the sales market and short-term volatility in lettings following the Renters’ Rights Act’s introduction in May.

Cost Savings and Profit Outlook

Foxtons reported £4.5 million of annualised cost savings in the first half of the year, including £3 million from a cost-reduction programme in response to sales market challenges and £1.5 million from its January 2026 HQ relocation. These savings have largely offset National Insurance cost increases and other inflationary pressures.

The group expects to report an adjusted operating profit of approximately £8.5 million for the first half of 2026, down from £12.3 million in the same period last year. Full-year 2026 adjusted operating profit is expected to be between £17 million and £19 million.