Foxtons reveals early impact of Renters’ Rights Act as lettings revenue drops
Summary
Foxtons reported that lettings revenue fell in its Q3 trading update, attributing part of the decline to elevated tenant-led early terminations following the introduction of the Renters’ Rights Act. The company said the disruption eased through the quarter and into October, while sales revenue also weakened in a challenging market with affordability pressures affecting higher-value transactions.
Why it matters
The article highlights an early commercial effect of rental reform on agency operations, which is relevant to surveyors involved in lettings, valuation and market analysis. It also signals continued pressure in the sales market from higher mortgage rates and changing buyer affordability, which can influence instructions and pricing assumptions.
Key points
- Foxtons linked a £2.7m lettings revenue impact to early terminations after the Renters’ Rights Act came into force.
- The company said the initial disruption eased during Q3 and into October.
- Sales revenue also declined, with lower average revenue per transaction reflecting a shift to lower-value properties.
- Foxtons maintained market share after downsizing its sales business earlier in the year.
- The group expects full-year adjusted operating profit to remain within its previously guided range.
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