Foxtons says the Renters’ Rights Act forced it to reverse about £3 million of revenue in May and June after a wave of tenancy terminations, with student lets hit hardest.
The London-focused agency disclosed the figure in a trading update on 16 July ahead of its half-year results, saying the change followed the May abolition of fixed tenancy terms and greater flexibility for tenants to end agreements. Foxtons said the reversal related to income that had been contractually due under the old system.
For landlords, the update is one of the clearest early signs yet that the new tenancy framework is not just changing compliance and possession strategy – it is also shifting how agents, student landlords and investors think about income security.
Student lets take the first hit
Foxtons said tenancy terminations rose in May and June after the new rules came in, with student rentals seeing the sharpest disruption. That matters because fixed-term student agreements had been one of the more predictable parts of the lettings market for many landlords and agents.
The group said the £3 million reversal came from revenue that had already been recognised but was no longer secure once tenants used the added flexibility created by the Act. In practice, that points to a short-term adjustment cost for landlords and agents operating in markets where student demand, seasonal turnover and advance letting patterns are common.
Earlier this year, Foxtons said the Renters’ Rights Act could increase demand for professional management. The latest update does not overturn that view, but it does show the transition is proving more expensive than some in the sector expected.
Why the Foxtons update matters for landlords
Foxtons is not a proxy for the whole market, but its scale in London lettings means the update will be closely watched. If a large agency with heavy exposure to managed stock is seeing income unwind this early, smaller landlords and student operators may also need to revisit assumptions on voids, notice risk and cash flow.
The company said sales trading has also weakened, but its lettings business remained more resilient than sales overall. It added that refinancing volumes and cross-sell in financial services were stronger, which helped offset some pressure elsewhere. Still, Foxtons now expects first-half adjusted operating profit of about £8.5 million, down from £12.3 million a year earlier, and full-year adjusted operating profit of £17 million to £19 million. The full trading update said a more normal pattern of tenancy terminations is expected later in the year.
This follows Landlord Knowledge’s May report on Foxtons’ claim that London landlords were holding supply after the Act came into force. The new trading update adds a sharper point: supply may have held up, but revenue collection and tenancy duration have become less predictable during the early transition.
That makes this more than an agency earnings story. For landlords with student stock, houses in multiple occupation or portfolios in high-turnover city markets, the bigger issue is whether the first two months under the new rules were a one-off adjustment or a sign that tenancy planning will stay looser for longer.
What this means for landlords
- If you’re in student lettings: review how exposed next year’s income is to earlier move-outs and mid-cycle tenancy changes.
- Watch for: agents changing advice on advance lettings, notice handling and rent collection assumptions under the post-fixed-term model.
- Bottom line: the Act may still lift demand for management, but the first clear market evidence shows it can also reduce income certainty in the short term.
Editor’s view
The long-term case for professional management may still strengthen under the Renters’ Rights Act. But Foxtons’ £3 million reversal is a warning that landlords should not confuse future demand for agents with a smooth transition in cash flow.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 17 July 2026
Sources: Foxtons Group PLC trading update (RNS), 16 July 2026
Related reading: Foxtons says RRA will boost landlord demand for agents
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