Foxtons increased financial services revenue by 20% during the first half of 2026, supported by stronger remortgage activity and operational improvements.
Annoucning interim half year results this morning the estate agency group said improved client retention and cross-selling generated additional income, while closer links with its branch network helped purchase mortgage revenue remain resilient despite significantly weaker London transaction volumes.
The performance contrasted with a 13% decline in sales revenue as higher-than-expected interest rates, political uncertainty and conflict in the Middle East affected buyer confidence.
Across the group, revenue fell 3% to £83.7 million, adjusted operating profit declined 29% to £8.9 million and pre-tax profit dropped 57% to £4.4 million.
REFINANCING SUPPORTS REVENUE
Foxtons attributed its financial services growth to increased refinancing volumes alongside operational upgrades that improved ancillary revenues.
Recurring and non-cyclical income from lettings and refinancing represented 69% of group revenue, increasing from 65% during the corresponding period of 2025.
Foxtons said enhanced connectivity between its estate agency and financial services operations also supported new purchase mortgage revenue.
However, the group described London’s sales market as challenging, with activity restrained by weak consumer confidence and elevated borrowing costs.
STAMP DUTY REFORM NEEDED
Guy Gittins (main picture, inset), chief executive officer at Foxtons, said 2026 is likely to be one of the lowest years on record for London property transactions.
He said: “In sales, we’ve taken action to align the business with market conditions and support performance at lower transaction volumes.
“With 2026 likely to prove one of the lowest years for London transaction volumes on record, we urge the new cabinet to prioritise stamp duty reform, which remains the single biggest barrier to home moving.”
The group has implemented annualised cost savings of £4.5 million, including £3 million from a programme introduced in response to sales market headwinds.
Net debt increased from £18.2 million to £28.4 million, reflecting acquisitions, reduced free cash flow and shareholder returns.
Foxtons expects adjusted operating profit of between £17 million and £19 million for the full year, with performance weighted towards the second half as cost savings take effect and disruption within its lettings operation moderates.
