London-based estate firm Foxtons has actually reported a 35% decline in sales income for the first quarter of 2026, as deteriorated purchaser demand and raised home loan costs lowered deal volumes.
The company’s trading update shows sales revenue fell to ₤ 10.7 m from ₤ 16.4 m in the very same period in 2015, adding to a 10% decrease in overall group revenue to ₤ 39.6 m. The figures reflect both a strong relative period in 2025, when buyers rushed to complete transactions ahead of stamp responsibility modifications, and current market conditions.
Market pressures and cost decrease
Guy Gittins, Chief Executive Officer, attributed the decline to continuous market obstacles. “The Sales market remains subdued and has been further impacted by current occasions in the Middle East, which have tempered purchaser belief and affected home mortgage rates and schedule,” he said.
The Middle East conflict has actually added to broader economic pressures affecting the UK property market, with home mortgage schedule tightening up throughout the sector.
In response to declining sales performance, Foxtons has started a cost decrease programme targeting at least ₤ 3m in annualised savings, in addition to ₤ 1.5 m already attained through its headquarters relocation. The business is reallocating staff from sales to lettings and other development locations to optimise margins in a lower transaction environment.
Lettings and monetary services offset decline
Regardless of the sales downturn, lettings earnings increased 5% to ₤ 26.4 m, supported by current acquisitions in Birmingham and Milton Keynes as part of the company’s growth beyond its conventional London base. Financial Solutions income increased 3% to ₤ 2.6 m.
The lettings department now represents more than two-thirds of group revenues, offering strength versus the weakened sales market. This shift reflects broader affordability pressures in the UK real estate market that have actually driven demand towards the rental sector.
Gittins stated the company remains confident that its lettings and monetary services businesses, integrated with repositioning efforts in sales, will “continue to deliver market-leading results for clients, development chances for our individuals and long-term value production for investors.”
Foxtons specified it remains on track to fulfill full-year expectations despite the first quarter difficulties. The business’s shares are noted on the London Stock Market.