Foxtons has told the City its sales revenue has fallen sharply alongside a wider drop in group income, as weaker buyer demand and rising mortgage costs hit transactions in the first quarter of 2026.

The trading update shows sales revenue fell by 35% to £10.7m, down from £16.4m a year earlier, contributing to a 10% decline in total group revenue to £39.6m. The estate agency said the fall reflected both a strong pre-Stamp Duty deadline period last year and a more subdued market.

Subdued market

Guy Gittins, Chief Executive Officer, said: “The Sales market remains subdued and has been further affected by recent events in the Middle East, which have tempered buyer sentiment and impacted mortgage rates and availability.”

In response, Foxtons has launched a cost reduction programme targeting at least £3m in annualised savings, alongside £1.5m already delivered through its HQ relocation. It is repositioning its Sales business to “optimise margins in a lower transaction environment”, including reallocating staff towards lettings and higher-growth areas.

We remain confident that the resilience of our Lettings and Financial Services businesses, which represents more than two-thirds of revenues.”

Despite the downturn in sales, lettings revenue rose 5% to £26.4m, supported by recent acquisitions in Birmingham and Milton Keynes as part of its ongoing expansion strategy, while Financial Services income increased 3% to £2.6m.

Gittins said: “We remain confident that the resilience of our Lettings and Financial Services businesses, which represents more than two-thirds of revenues, alongside work to reposition the Sales business, can continue to deliver market-leading results for customers, growth opportunities for our people and long-term value creation for shareholders.”

The group said it remains in line with full-year expectations.

You can read the full update here.