Foxtons says lettings resilient, but sales activity to weaken in 2026

(Sharecast News) - High street estate agency chain Foxtons said it is "repositioning" its sales business for lower expected buyer activity in 2026, but still expects both revenue and profit growth this year, bolstered by a resilient lettings market.

The company, which says it runs a "lettings-focused operating model", said revenues totalled �172.5m over 2025, up 5% over the previous year, with lettings revenue up 5%, sales revenues up 6% due to acquisitions in commuter markets, and financial services revenue up 10%.

Adjusted operating profit was flat at �22.2m, as top-line growth was offset by increased costs, including the impact of National Insurance and National Living Wage increases, and inflationary pressures, Foxtons said.

The company left its dividend unchanged at 1.17p per share.

Looking ahead, Foxtons guided to growth on both the top and bottom lines this year, but didn't give specific guidance.

The lettings market is sold, with the Renters' Right Act effective in May "expected to create growth opportunities over the medium-term by driving a flight to quality agents". The Act will also strengthen the linkage of revenues through annual rent reviews, the company said.

However in sales, and in London in particular, the backdrop is more challenging as buyer activity levels continue to be held back.

"Our focus through 2026 is to reposition the Sales business for the lower volume markets we continue to experience and support its path to profitability," said chief executive Guy Gittins.

"For pentup demand to be released, the market will require a more stable economic and policy backdrop than in 2025, supported by further interest rate reductions."

The stock was up 2.4% at 47.25p by 0945 GMT.