Foxtons Group plc (LSE: FOXT), London's leading estate agency brand and the UK's largest lettings agency, has reported a 6% decline in total revenue to £45.9m for the third quarter ended 30 September 2026, compared with £49.0m in the same period a year earlier. The group attributed the shortfall primarily to elevated tenant-led early terminations following the introduction of the Renters' Rights Act on 1 May 2026, while confirming that full-year adjusted operating profit is expected to remain within the previously guided £17m to £19m range. Investors will note that the group completed four acquisitions in September 2026 as part of its buy, build and bolt-on strategy, adding scale in Birmingham, Watford and Reading.

Key Points

  • Foxtons Group plc (LSE: FOXT) — London's leading estate agency and UK's largest lettings agency brand
  • Total Q3 2026 revenue fell 6% to £45.9m; nine-month year-to-date revenue declined 4% to £129.6m
  • Full-year adjusted operating profit guidance maintained at £17m–£19m; four acquisitions completed in September 2026
  • Investors should watch for further Renters' Rights Act impacts and progress on the lettings acquisition pipeline

Renters' Rights Act Drives £2.7m Q3 Lettings Revenue Impact as Early Terminations Begin to Ease

Lettings, the group's largest and most recurring revenue stream, reported Q3 revenue of £31.1m, down 7% from £33.4m a year earlier. The announcement states that a £2.7m impact arose from elevated tenant-led early terminations after the Renters' Rights Act came into force on 1 May 2026, which allowed tenants to exit fixed-term tenancies by providing two months' notice. The group notes that early terminations eased throughout Q3 and into October, suggesting the disruption reflects a short-term transition. Crucially, the cash impact is described as largely non-cash, as reversed revenues related to accounting policy adjustments rather than cash outflows. Year-to-date lettings revenue stood at £85.8m, down 3%.

Four September Acquisitions Extend Foxtons Operating Platform Into Birmingham, Watford and Reading

Foxtons completed four lettings portfolio acquisitions in September 2026, building scale in Birmingham and strengthening existing platforms in Watford and Reading. The announcement states these acquisitions are expected to deliver returns above the group's 20% return on invested capital target through operational synergies and scale benefits enabled by the Foxtons Operating Platform — the group's proprietary technology, data infrastructure, and hub-and-spoke operational model. Year-to-date lettings revenue received £2.6m of incremental acquisition revenue, while the group disclosed a pipeline of further acquisition opportunities, reinforcing its stated strategy of expanding into complementary, higher-growth regional markets beyond its core London base.

Sales Revenue Falls 5% in Q3 as Higher Mortgage Rates Suppress London Buyer Affordability

The Sales segment reported Q3 revenue of £12.0m, a 5% decline from £12.5m, as average revenue per transaction fell 8% due to a mix shift towards lower-value properties. The announcement attributes weaker year-to-date Sales performance — revenue down 10% to £35.5m — to higher borrowing costs, weaker consumer confidence, and geopolitical uncertainty weighing on London buyer activity. Foxtons notes that regional markets proved more resilient, supporting its strategy of geographic diversification. The group also delivered £4.5m of annualised cost savings through a Sales business downsizing in the first half, maintaining market share whilst protecting profitability.

Financial Services Posts 9% Year-to-Date Revenue Growth Despite Q3 Dip on Lower Mortgage Sizes

Financial Services generated Q3 revenue of £2.9m, down 7% year-on-year, as lower average mortgage sizes in a higher interest rate environment reduced revenue per transaction. Despite the quarterly decline, year-to-date revenue grew 9% to £8.3m, driven by improved conversion of refinancing opportunities and strong double-digit growth in the cross-sell of ancillary products. The announcement highlights continued progress in adviser productivity and customer retention as key operational drivers. This segment's year-to-date outperformance against the prior year demonstrates the benefit of Foxtons' cross-sell model, though the higher mortgage rate environment remains a structural headwind for transaction values and affordability across both Sales and Financial Services.