foxton has reported a sharp decline in sales revenue in its Q1 trading update, reflecting weak market conditions.
Sales revenue fell 35% to £10.7 million, from £16.4 million in the same period last year. The company attributed the decline partly to a stronger prior-year comparative, when activity was boosted by buyers completing completions ahead of the March 31, 2025 stamp duty deadline, as well as a more subdued market in early 2026.
Compared to the first quarter of 2024, when conditions were more normal, sales revenue was slightly higher at £10.7 million versus £9.5 million.
Foxton reported lower-than-expected new buyer activity during the quarter, citing uncertainty related to geopolitical developments, rising mortgage rates and reduced product availability. In response, the group said it was adjusting its sales operations to better align with current market conditions.
rental
Lettings revenue increased 5% to £26.4m (Q1 2025: £25.2m), which the agency described as organic revenue growth of £0.6m, £0.9m incremental revenue from acquisitions and £0.2m lower interest on client money.
Foxton says organic growth was driven by continued momentum in cross-selling of property management services, growth in build to rent revenues and further growth from the Reading acquisition in 2024.
As previously announced, the Group continued to execute its acquisition strategy, completing two acquisitions of independent agents in Milton Keynes and Birmingham.
Supported by the industry leading Foxton operating platform, these acquisitions are expected to drive organic growth through both revenue and cost synergies, while also enabling high-ROI bolt-on acquisitions in these regions. A pipeline of further acquisition opportunities exists and is currently being pursued.
Group Revenue: 3 months ended 31 March
|
|
Q1 2026 |
Q1 2025 |
£m change |
% Change |
|
rental |
£26.4m |
£25.2 million |
+£1.2 million |
+5% |
|
sales |
£10.7m |
£16.4 million |
(£5.7 million) |
(35%) |
|
financial Services |
£2.6 million |
£2.5 million |
+£0.1 million |
+3% |
|
Total |
£39.6 million |
£44.1 million |
(£4.4 million) |
(10%) |
financial Services
Financial services revenue increased 3%£2.6m in the quarter (Q1 2025: £2.5m), driven by good levels of refinancing activity and growth in ancillary revenues. This helped offset weak new buying activity amid low selling volumes in the market.
Cost Action and Productivity
The Group has recently responded to adverse market conditions with an active cost reduction programme, aiming for at least £3m of annual savings, which is currently underway. This builds on annual savings of £1.5 million already delivered through the headquarters relocation, effective from January 2026.
The focus of this program is to restructure the sales business to optimize margins in a low transaction environment. This is being delivered through improvements in the operating model to reduce costs while protecting revenues. Key initiatives include reallocating headcount to higher-growth opportunities in lettings, redeploying support roles into fee-earning roles to increase productivity and reducing support costs through more efficient workflows and processes.
Guy Gittins, Chief Executive Officer, said: “Our strategic focus on recurring revenues has ensured that Foxtons has delivered a resilient performance despite recent headwinds in the market. In the quarter, we acquired lettings businesses in the high-growth, complementary markets of Birmingham and Milton Keynes. This, combined with organic growth and the growing share of our property management services, meant that lettings revenues increased by 5% in the period.
“The implementation of the Tenant Rights Act on 1 May 2026 is expected to create growth opportunities for Foxtons. The high regulatory requirements underline the importance of working with a trusted, professional agent, and Foxtons’ scale, expertise and compliance capabilities position the business to protect landlords’ investments and capture market share.
“The sales market remains subdued and has been further impacted by recent events in the Middle East, which have dampened buyer sentiment and impacted mortgage rates and availability. As always, Foxtons is focused on what we can control by managing costs, increasing efficiency and realigning our sales business to minimize market impact.
“We are confident that the resilience of our lettings and financial services businesses, which represent more than two thirds of revenues, coupled with the work to reestablish the sales business, can continue to deliver market-leading results for clients, growth opportunities for our people and long-term value creation for shareholders.”