London-based estate agency Foxtons has reported a 35% decline in sales revenue for the first quarter of 2026, with total group revenue falling 10% to £39.6m as market conditions deteriorated.
Sales revenue dropped to £10.7m from £16.4m in the same period last year, which the company attributed to a strong prior-year comparator when transactions were elevated ahead of the 31 March 2025 stamp duty deadline. Compared with the first quarter of 2024, when market conditions were more typical, sales revenue showed a modest increase from £9.5m.
The company cited lower-than-expected new buyer activity during the quarter, pointing to uncertainty linked to geopolitical developments in the Middle East, rising mortgage rates and reduced product availability as contributing factors.
Lettings revenue provides partial offset
Lettings revenue increased 5% to £26.4m from £25.2m, driven by £0.6m of organic revenue growth and £0.9m from recent acquisitions, partially offset by £0.2m lower interest on client funds. The growth came from continued cross-selling of property management services, increased Build to Rent revenues, and contributions from the Reading acquisition completed in 2024.
During the quarter, Foxtons completed two acquisitions of independent agencies in Milton Keynes and Birmingham, with the company stating that further acquisition opportunities are under consideration.
Financial services revenue rose 3% to £2.6m from £2.5m, supported by refinance activity and ancillary revenues, which offset lower new purchase activity amid weaker sales market volumes.
Cost reduction programme underway
In response to market conditions, Foxtons has initiated a cost-reduction programme targeting at least £3m in annualised savings, building on £1.5m of savings already achieved through its headquarters relocation in January 2026. The programme includes reallocating headcount towards lettings operations, redeploying support roles into fee-earning positions, and streamlining workflows.
Chief executive Guy Gittins said the implementation of the Renters’ Rights Act on 1 May 2026 is expected to create growth opportunities, as higher regulatory requirements increase demand for professional agency services.
Lettings and financial services now represent more than two-thirds of Foxtons’ total revenue, providing recurring income streams as the company adjusts its sales operations to align with current market conditions.
