Foxtons reveals early impact of Renters’ Rights Act as lettings revenue drops
Summary
Foxtons reported that its Q3 lettings revenue was hit by elevated tenant-led early terminations following the introduction of the Renters’ Rights Act on 1 May 2026, although the disruption eased through the quarter and into October. Sales revenue also fell in a softer market, while the group said trading remains in line with expectations and full-year profit guidance is unchanged.
Why it matters
The article highlights an early operational effect of rental reform on agency income and tenancy turnover, which is relevant to surveyors involved in lettings, valuation and market analysis. It also signals how wider affordability pressures and policy changes are influencing transaction volumes and revenue mix in the residential market.
Key points
- Lettings revenue fell 7% to £31.1m after a £2.7m impact from early terminations linked to the Renters’ Rights Act.
- Foxtons said the disruption eased during Q3 and October, suggesting the effect may be transitional.
- Sales revenue dropped 5% to £12m, with lower average revenue per transaction and weaker higher-price-point demand.
- The group maintained market share and kept full-year adjusted operating profit guidance at £17m to £19m.
- Foxtons also completed four acquisitions to expand regional operations and strengthen its platform.
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