Foxtons, the London-focused estate agency, has reported a significant decline in its first-half profits, attributing the fall to a weaker sales market and the impact of the Renters' Rights Act. For the six months ending June 30, the group's pre-tax profit dropped 57% to £4.4m, down from the same period last year.
Overall revenue for the period was £83.7m, a 3% decrease. Sales revenue saw a 13% decline, which Foxtons linked to lower transaction volumes following last year's stamp duty-driven activity, reduced consumer confidence, higher interest rates, and geopolitical uncertainty.
Lettings revenue remained largely flat, with growth in Build to Rent operations, landlord services, and recent acquisitions being offset by a £3m reversal of previously recognised revenue. This reversal was due to an increase in tenant-led tenancy terminations after the introduction of the Renters' Rights Act, directly impacting profitability.
Despite the challenges, the company's Financial Services division saw a 20% increase in revenue, driven by stronger refinancing activity. Foxtons also implemented cost-saving measures, generating £1.3m in savings during the first half and anticipating annualised benefits of approximately £4.5m. The group maintained its interim dividend at 0.24p per share.