A trading update from Foxtons this morning shows the financial impact of the Renters Rights Act on the agency.
It tells shareholders:
Lettings
Q3 revenue declined by £2.3m, or 7%, to £31.1m, after a £2.7m impact from elevated tenant‐led early terminations following the introduction of the Renters’ Rights Act (“RRA”) on 1 May 2026, as previously flagged at the Interim Results
Before this impact, revenue was marginally ahead year‐on‐year, including £1.0m of incremental revenue from acquisitions.
Consistent with expectations set out at the Interim Results, early terminations eased throughout Q3 and October, indicating that elevated activity reflects a short‐term transition following the introduction of the RRA.
Year‐to‐date revenue declined by £2.2m, or 3%, to £85.8m after a £5.7m impact from elevated tenant‐led early terminations, with the highest level of terminations occurring in May and June.
Excluding this, revenue increased by £3.5m year‐on‐year, driven by £2.6m of incremental acquisition revenue alongside strong growth in Build to Rent revenues and the cross‐sell of value‐add property management services, partially offset by lower interest on client monies reflecting lower Bank of England interest rates.
As previously announced, the Group completed four acquisitions in September, continuing the execution of its buy, build and bolt‐on strategy. The acquisitions build scale in Birmingham and strengthen established platforms in Watford and Reading.
Supported by the Foxtons Operating Platform, these acquisitions are expected to deliver attractive returns above our 20% ROIC target through the realisation of operational synergies and scale benefits. The Group has a pipeline of further Lettings acquisition opportunities.
Sales
Q3 revenue declined by £0.6m, or 5%, to £12.0m in a challenging sales market. Foxtons’ like‐for‐like transaction volumes renained broadly stable, but average revenue per transaction declined 8%, reflecting a mix weighted towards lower‐valueproperties, as higher mortgage rates impacted buyer affordability at higher price points.
Year‐to‐date revenue declined by £4.0m, or 10%, to £35.5m, including £1.1m of incremental acquisition revenue, as weaker consumer confidence, higher borrowing costs and economic and geopolitical uncertainty weighed significantly on buyer activity in London.
Trading in regional markets proved more resilient, reinforcing the Group’s strategy of expanding intocomplementary, higher‐growth geographies.
Market share has been maintained following the downsizing of the Sales business in H1 to protect profitability, with these actions forming a key part of the Group’s wider cost reduction programme, which delivered £4.5m of annualised savings.
Operational enhancements have also improved productivity and efficiency, supporting performance from a leaner cost base.
