London-based estate agency Foxtons has actually reported a 35% decrease in sales revenue for the first quarter of 2026, with overall group earnings falling 10% to ₤ 39.6 m as market conditions weakened.
Sales profits dropped to ₤ 10.7 m from ₤ 16.4 m in the very same period last year, which the business credited to a strong prior-year comparator when transactions rose ahead of the 31 March 2025 stamp responsibility deadline. Compared with the first quarter of 2024, when market conditions were more normal, sales revenue showed a modest increase from ₤ 9.5 m.
The company mentioned lower-than-expected brand-new purchaser activity during the quarter, pointing to unpredictability connected to geopolitical developments in the Middle East, increasing mortgage rates and minimized product accessibility as contributing elements.
Lettings earnings offers partial balanced out
Lettings income increased 5% to ₤ 26.4 m from ₤ 25.2 m, driven by ₤ 0.6 m of natural earnings growth and ₤ 0.9 m from recent acquisitions, partially offset by ₤ 0.2 m lower interest on client funds. The growth originated from continued cross-selling of property management services, increased Build to Rent revenues, and contributions from the Reading acquisition finished in 2024.
During the quarter, Foxtons completed 2 acquisitions of independent firms in Milton Keynes and Birmingham, with the company mentioning that further acquisition chances are under consideration.
Financial services profits rose 3% to ₤ 2.6 m from ₤ 2.5 m, supported by re-finance activity and ancillary incomes, which balanced out lower new purchase activity amidst weaker sales market volumes.
Cost decrease programme underway
In reaction to market conditions, Foxtons has initiated a cost-reduction program targeting a minimum of ₤ 3m in annualised cost savings, constructing on ₤ 1.5 m of savings currently attained through its head office moving in January 2026. The programme consists of reallocating headcount towards lettings operations, redeploying assistance functions into fee-earning positions, and improving workflows.
President Guy Gittins stated the application of the Tenants’ Rights Act Upon 1 May 2026 is expected to create growth chances, as higher regulatory requirements increase need for expert agency services.
Lettings and financial services now represent more than two-thirds of Foxtons’ total earnings, offering repeating earnings streams as the business adjusts its sales operations to align with current market conditions.