Foxtons Group (LSE:FOXT), London's largest lettings and estate agency brand, reported revenue of £83.7m for the half year ended 30 June, down 3% from the prior period.
Sales revenue fell 13% against a comparator that had benefited from stamp duty deadline tailwinds, as weaker consumer confidence and higher interest rates curbed buyer activity. Lettings revenue held flat, with growth in Build to Rent and ancillary landlord services offset by a £3m reversal of previously recognised revenue following elevated tenant-led terminations after the introduction of the Renters' Rights Act.
Financial Services revenue rose 20% on stronger refinancing volumes.
Adjusted operating profit fell £3.6m, reflecting the £3m Lettings revenue reversal alongside sales headwinds, partly offset by £1.3m of cost savings from a programme expected to deliver £4.5m annualised.Net debt rose to £28.4m from £18.2m a year earlier, reflecting lower free cash flow, £8.8m spent on acquisitions in Milton Keynes and Birmingham, and £3.2m returned to shareholders.
The group maintained its interim dividend at 0.24p per share.
"With 2026 likely to prove one of the lowest years for London transaction volumes on record, we urge the new cabinet to prioritise Stamp Duty reform", said chief executive Guy Gittins.
Foxtons reiterated guidance given in its 16 July trading update, expecting full-year adjusted operating profit of £17m to £19m, weighted towards the second half as tenant terminations stabilise and cost actions take effect.
News Intelligence what this means for the company
Foxtons' H1 revenue fell 3% to £83.7m, driven by a 13% sales collapse as London buyer activity weakened, compounded by a £3m reversal of lettings revenue after tenant-led terminations under the new Renters' Rights Act. The company had flagged this disruption on 16 July, and today's results confirm the damage: adjusted operating profit fell £3.6m despite £1.3m of cost savings already realised from a £4.5m annualised programme. Net debt rose sharply to £28.4m from £18.2m, reflecting lower free cash flow and £8.8m spent on acquisitions outside London, yet management held the interim dividend and reiterated full-year guidance of £17–19m adjusted operating profit, betting on stabilisation in H2.
The core London lettings and sales engine is under structural pressure: sales revenue down 13%, lettings revenue flat despite growth in Build to Rent, and tenant terminations creating a £3m headwind that may persist. Profitability guidance of £17–19m for the full year implies H2 must recover materially, and the company is banking on cost cuts and stabilising terminations to deliver it. Dividend maintenance signals confidence, but rising net debt (now 1.6× the prior-year level) and geographic diversification into Milton Keyton and Birmingham suggest management is hedging against a prolonged London downturn.
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