Shares in Foxtons fell 4 per cent on Thursday morning after the group revealed that its fees from house sales slumped 35 per cent in the first quarter.
Revenue from the estate agency’s house sales divisions fell to £10.7million in the three months to the end of March.
It was down from the ‘exceptionally strong’ £16.4million in the same period last year, when Foxtons was boosted by buyers flocking to the market ahead of changes to the stamp duty regime from 1 April 2025.
Total revenue fell 10 per cent to £36.9million in the latest quarter, against £44.1million in the first quarter of 2025.
Chief executive Guy Gittins said the sales market remained ‘subdued’, adding that it had been further hit by war in the Middle East, which had ‘tempered’ buyer sentiment and impacted mortgage rates and availability.
Recent data from Rightmove showed buyer demand across Britain was seven per cent lower in April than in the same month last year.
Several mortgage lenders have started to trim interest rates on home loans, but they remain higher than they were before war across the Middle East began.
Foxtons said new buyer activity during the period was lower than initially expected, hit by elevated levels of uncertainty stemming from recent geopolitical developments in the Middle East, higher mortgage rates and lower mortgage product availability.
Sluggish: Guy Gittins, chief executive of Foxtons, said the sales market remained ‘subdued’
While sales fees dropped, Foxtons said it had grown lettings revenue by five per cent to £26.4million, up from £25.2million in the first quarter of last year.
Financial services revenue grew 3 per cent in the quarter to £2.6million, helping offset weaker purchase activity amid lower sales market volumes.
The group’s lettings and financial services arms comprised more than two-thirds of the company’s revenues.
On Thursday, Foxtons said it was ploughing ahead with its plan to make £3million of annualised cost savings. This is on top of £1.5million of annualised savings already delivered through the firm’s headquarters relocation effective from January 2026.
Foxtons added: ‘Key initiatives include reallocating headcount towards higher‑growth opportunities in lettings, redeploying support roles into fee‑earning roles to drive productivity, and lowering support costs through more efficient workflows and processes.’
Looking ahead, Foxtons said it expects the implementation of the Renters’ Rights Act on 1 May ‘to create growth opportunities’ for its business.
The estate agency said: ‘Higher regulatory requirements further underline the importance of working with a trusted, professional agent, and Foxtons’ scale, expertise and compliance capabilities position the business to protect landlords’ investments and capture market share.’
Foxtons maintained its annual outlook on Thursday.
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