Foxtons reports profit decline amid London sales slowdown and new rental rules

Foxtons Group plc announced that first‑half revenue fell 3% to £83.7 million, with pre‑tax profit dropping 57% to £4.4 million. Adjusted operating profit declined 29% to £8.9 million after the London sales market weakened and the recently introduced Renters’ Rights Act led to an increase in tenant‑initiated terminations. Lettings revenue was broadly flat at £54.7 million, while growth in Build‑to‑Rent and ancillary landlord services helped offset part of the headwind.

The company said about 150 tenancies per week ended due to the new rental rules, mainly affecting students and tenants seeking greater flexibility. Cost‑saving actions generated £1.3 million in the first half, with an expected annual benefit of around £4.5 million. Net debt rose to £28.4 million, and the revolving credit facility was increased to £50 million. Foxtons maintained an interim dividend of 0.24 pence per share.

Management highlighted that recurring, non‑cyclical income now makes up 69% of total revenue, up from 65% a year earlier, and that lettings portfolio growth to 32,000 tenancies is providing resilience against the volatile sales market.