Foxtons increased revenue from its financial services division by 10% in 2025, supported by higher transaction volumes and stronger demand for refinancing activity.

The estate agency group reported financial services income of £10.3m for the year to 31 December, up from £9.3m in 2024, according to its full-year results published this morning. Transaction volumes rose 13% to 5,776 mortgage cases, compared with 5,115 a year earlier.

The increase came despite a slight decline in average revenue per transaction, which fell 2% to £1,785 as market activity shifted towards refinancing rather than new purchase business.

Refinance activity accounted for a significant proportion of the division’s income during the year. Around £4.3m, or 42% of financial services revenue, was generated from refinance transactions, with the remaining £6.0m derived from purchase-related lending.

LOWER FEES

Foxtons said the change in product mix reflected wider market conditions, with refinancing typically generating lower fees per case than new purchase mortgages.

The financial services arm, which operates under the Alexander Hall brand, produced an adjusted operating profit of £1.1m, unchanged from the previous year. Contribution from the division rose slightly to £4.2m, although margins eased to 40.7% from 43.0% due to the shift towards refinance activity and investment in additional fee-earning staff.

Financial services remains a relatively small but growing part of the group’s overall revenue mix, accounting for around 6% of total turnover in 2025, compared with 5% the previous year.

LETTINGS SURGE

Across the wider business, Foxtons reported total revenue of £172.5m, up 5% year-on-year, with growth driven primarily by the lettings division.

Non-cyclical and recurring income streams – including lettings and refinance activity – accounted for around 67% of group revenue during the year.

The company said its strategy continues to focus on expanding cross-selling opportunities across lettings, sales and financial services to increase customer lifetime value and diversify revenue streams.

NOT STANDING STILL

Guy Gittins (main picture, inset), chief executive officer, said: “We were pleased to deliver 5% revenue growth in the year, as our continued focus on growing non‑cyclical and recurring lettings revenues enabled us to maintain adjusted operating profit despite a volatile sales market.

“Operationally we are not standing still, with AI-led improvements to our operating platform and targeted marketing initiatives helping us deliver best‑in‑class service for our customers.

“We have strong foundations, a clear growth strategy and a highly scalable platform, and we are targeting growth in 2026 and beyond.”