Foxtons Group (LON: FOXT) said today that third-quarter revenue fell 6% to £45.9m, but it still expects full-year adjusted operating profit of £17m to £19m. That is the range it gave in July, and trading is in line with management’s expectations.
Revenue in the same quarter of 2025 was £49.0m. Over the nine months to the 30th of September, revenue fell 4% to £129.6m. The update came at 7am, before the market opened.
Lettings, the largest segment, fell 7% to £31.1m. Since the Renters’ Rights Act took effect on the 1st of May, tenants can end a tenancy on two months’ notice. Where they do, Foxtons reverses revenue already booked for the unexpired period.
That reversal cost £2.7m in the quarter and £5.7m so far this year, with May and June the worst months. Foxtons flagged the hit at its interim results. Terminations eased through the quarter and October, and the impact is largely non-cash.
The table sets each segment against a year earlier, for the quarter and the nine months.
| Segment | Q3 2026 | Q3 2025 | 9M 2026 | 9M 2025 |
|---|---|---|---|---|
| Lettings | £31.1m | £33.4m | £85.8m | £88.0m |
| Sales | £12.0m | £12.5m | £35.5m | £39.4m |
| Financial Services | £2.9m | £3.1m | £8.3m | £7.7m |
| Total | £45.9m | £49.0m | £129.6m | £135.1m |
Sales has fallen furthest over the nine months, down 10%. In the quarter it slipped 5% as revenue per transaction dropped 8%. Higher mortgage rates hurt affordability at higher price points, so the mix shifted to cheaper homes, while like-for-like volumes were broadly stable.
Financial Services fell 7% in the quarter on lower average mortgage sizes, though it is up 9% over the nine months.
Chief executive Guy Gittins described the quarter this way:
We delivered a resilient performance in Q3 despite a challenging market backdrop. Lettings traded broadly in line with our expectations, with the initial disruption following the introduction of the Renters’ Rights Act moderating through the quarter and re-letting activity remaining robust.
Guy Gittins, chief executive of Foxtons
Foxtons completed four acquisitions in September, in Birmingham, Watford and Reading, and expects returns above its 20% return on invested capital target. Its cost reduction programme delivers £4.5m of annualised savings.
The remaining risk is the sales market. Foxtons cites weaker consumer confidence, higher borrowing costs and uncertainty in London, with regional markets more resilient.