London-based estate agency Foxtons has reported a 35% decline in sales revenue for the first quarter of 2026, as weakened buyer demand and elevated mortgage costs reduced transaction volumes.
The company’s trading update shows sales revenue fell to £10.7m from £16.4m in the same period last year, contributing to a 10% reduction in total group revenue to £39.6m. The figures reflect both a strong comparative period in 2025, when buyers rushed to complete transactions ahead of stamp duty changes, and current market conditions.
Market pressures and cost reduction
Guy Gittins, Chief Executive Officer, attributed the decline to ongoing market challenges. “The Sales market remains subdued and has been further affected by recent events in the Middle East, which have tempered buyer sentiment and impacted mortgage rates and availability,” he said.
The Middle East conflict has contributed to broader economic pressures affecting the UK property market, with mortgage availability tightening across the sector.
In response to declining sales performance, Foxtons has initiated a cost reduction programme targeting at least £3m in annualised savings, in addition to £1.5m already achieved through its headquarters relocation. The company is reallocating staff from sales to lettings and other growth areas to optimise margins in a lower transaction environment.
Lettings and financial services offset decline
Despite the sales downturn, lettings revenue increased 5% to £26.4m, supported by recent acquisitions in Birmingham and Milton Keynes as part of the company’s expansion beyond its traditional London base. Financial Services income rose 3% to £2.6m.
The lettings division now represents more than two-thirds of group revenues, providing resilience against the weakened sales market. This shift reflects wider affordability pressures in the UK housing market that have driven demand towards the rental sector.
Gittins said the company remains confident that its lettings and financial services businesses, combined with repositioning efforts in sales, will “continue to deliver market-leading results for customers, growth opportunities for our people and long-term value creation for shareholders.”
Foxtons stated it remains on track to meet full-year expectations despite the first quarter challenges. The company’s shares are listed on the London Stock Exchange.
