Renters Rights Act bites into Foxtons profits
Summary
Foxtons reported a decline in Q3 revenue, with the company attributing a significant part of the fall to elevated tenant-led early terminations following the introduction of the Renters’ Rights Act. The update also noted weaker sales-market conditions, partly offset by acquisition-led growth and stronger lettings-related income outside the termination impact.
Why it matters
The article highlights how changes in tenancy law can quickly affect lettings income and portfolio performance, which is relevant to surveyors advising landlords, investors and managing agents. It also signals continued pressure in the sales market, especially in London, where affordability and borrowing costs are affecting transaction activity.
Key points
- Q3 revenue fell 7% to £31.1m, with Foxtons citing a £2.7m impact from tenant-led early terminations.
- The company said early terminations eased through Q3 and October, suggesting a short-term transition effect after the Renters’ Rights Act.
- Year-to-date revenue was down 3% to £85.8m, but would have risen without the termination impact.
- Sales revenue fell in a challenging market, with lower average revenue per transaction linked to a lower-value mix.
- Foxtons completed four acquisitions in September and continues to pursue further lettings acquisition opportunities.
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