Foxtons has reported a 25 percent drop in adjusted EBITDA for the first half of 2026 after the Renters’ Rights Act disrupted lettings income and a weaker sales market dragged on earnings.
The London agency said adjusted EBITDA fell to £10.4 million from £13.9 million a year earlier, while adjusted operating profit dropped 29 percent to £8.9 million. The fresh disclosure matters because it goes beyond the earlier £3 million revenue reversal Foxtons flagged this month and shows how far the new tenancy regime and slower sales market have fed through into group profits.
For landlords, this is one of the clearest listed-company updates yet on what the post-1 May market is doing to agency revenue, tenant behaviour and the economics of managed stock. It also suggests the adjustment period after the Renters’ Rights Act is proving longer and more expensive than some agents first hoped.
RRA disruption hits earnings, not just headlines
In its half-year results published on 30 July, Foxtons said group revenue slipped 3 percent to £83.7 million. Lettings revenue was flat overall, but only after growth in Build to Rent and ancillary landlord and tenant services helped offset a £3 million reversal of previously recognised revenue linked to elevated tenant-led tenancy terminations after the Renters’ Rights Act came in.
That is the sharper update landlords needed. The earlier trading statement showed where the first shock landed. The half-year figures now show the size of the hit after it dropped through to profit, with Foxtons saying the RRA-related reversal went directly against earnings.
The company said sales revenue fell 13 percent, adding a second drag on performance, while financial services revenue rose 20 percent on stronger refinancing volumes. In other words, the business did not suffer from one single problem. It faced a tougher lettings transition at the same time as the sales market remained weak.
This follows Landlord Knowledge’s earlier report on Foxtons reversing £3 million of student lettings revenue. The half-year results now confirm that the issue was not a small one-off accounting wobble. It materially affected profit.
Foxtons still sees longer-term upside for bigger agents
Foxtons argued that the Renters’ Rights Act should still create medium-term growth opportunities by driving demand toward larger agents, lifting use of management and compliance services, and helping Build to Rent partnerships grow. The firm said Build to Rent revenue rose 29 percent and ancillary landlord and tenant service revenues rose 17 percent in the first half.
That matters for landlords because it points to a split market. The Act may be making life harder in the short run, but larger operators think it will also push more landlords toward managed services and more institutional stock toward scaled agency partners.
Landlord Knowledge’s recent coverage of student HMO pressure under the new rules pointed in the same direction. The latest Foxtons results add balance to that picture: disruption is real, but so is the commercial opportunity for firms that can absorb the transition.
The caution for landlords is that Foxtons is also warning about weak London sales volumes and higher interest rates. So this is not a simple story about the Renters’ Rights Act helping professional agents. It is a story about stronger operators trying to use a messy market to gain share while profitability remains under pressure.
Landlords can review the Foxtons half-year results announcement for the full breakdown.
What this means for landlords
- If you use agents: expect more emphasis on management, compliance and ancillary services as agencies look for steadier income under the new rules.
- If you run student or high-turnover stock: keep watching termination behaviour, because that remains one of the clearest early pressure points.
- Watch for: whether other listed or large agencies report similar profit pressure from tenant-led exits and revenue reversals.
- Practical step: test cashflow assumptions against shorter stays, extra management input and slower sales exits.
- Bottom line: the Renters’ Rights Act may still help bigger agents in the long run, but the near-term cost for landlords and agencies is proving real.
Editor’s view
Foxtons is not just describing a transition issue anymore. The half-year numbers show that regulatory change and weaker market conditions are already showing up in profit, which makes this harder for landlords to dismiss as short-term noise.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 30 July 2026
Sources: Foxtons Group plc
Related reading: Foxtons says RRA wiped £3m from student lettings in May and June
📘 Renters’ Rights Act: Complete Landlord Guide
Everything you need to know about the new rules – 1 May 2026
