Foxtons’ financial services arm Alexander Hall reported a sharp rise in revenue in the third quarter of 2025 helping the London estate agent offset continued weakness in the capital’s housing sales market.
In a trading update this morning Foxtons reported revenue from financial services rose 37% to £3.1 million in the three months to September, up from £2.3 million a year earlier, driven largely by refinancing activity as homeowners opted to remortgage amid a subdued purchase market. Year-to-date, the division’s revenue was up 12% to £7.7 million.
The performance of the mortgage and protection business contributed to overall group revenue growth of 3% in the quarter to £49 million, while year-to-date turnover rose 7% to £135.1 million.
Recurring, non-cyclical income accounted for 71% of total revenue, helping to cushion the impact of reduced consumer confidence and uncertainty surrounding the delayed Autumn Budget.
LARGEST CONTRIBUTOR
Lettings remained the group’s largest contributor, generating £33.4 million in the quarter, a 5% increase on last year.
The division benefited from strong portfolio retention, operational improvements and higher rental prices, as well as recent acquisitions in Reading and Watford. Year-to-date lettings revenue rose 5% to £88 million.
Sales revenue fell 7% to £12.5 million, as transaction volumes slowed following deals brought forward earlier in the year ahead of the March stamp duty deadline.
SLUGGISH MARKET
Foxtons said buyer activity in London remained sluggish as potential purchasers awaited clarity on the government’s fiscal plans.
The group continued its cost-optimisation programme ahead of a planned head office relocation in early 2026, expected to deliver “meaningful” savings. It also launched a further £3 million share buyback in September, taking the total repurchased this year to £4.3 million across 7.7 million shares.
Foxtons said adjusted operating profit for the year is expected to be between £21.5 million and £23.2 million, broadly in line with 2024, though the company warned that fourth-quarter sales could fall below expectations if market conditions remain uncertain.
REGULATORY CHANGES FOR LANDLORDS
The Renters’ Rights Bill, now in its final stages in Parliament, is expected to increase demand for professional property management services. Foxtons said it was well positioned to guide landlords through regulatory changes and expand its higher-margin lettings operations.
“Speculation surrounding the delayed Autumn Budget has resulted in a subdued sales.”
Chief executive Guy Gittins (main picture, inset) said the lettings portfolio continued to underpin group growth, providing “a stable and resilient earnings base”.
But he added: “Macroeconomic uncertainty and speculation surrounding the delayed Autumn Budget has resulted in a subdued sales market as some buyers adopt a ‘wait and see’ attitude to purchases.
“There remains significant pent-up demand in the London volume market and we believe market conditions will improve once there is better clarity following the Budget, providing a more positive backdrop as we execute against our growth strategy.”
