Foxtons has told investors that the Renters’ Rights Act should create growth opportunities for larger letting agents, arguing that heavier regulation will push more landlords towards professional management. For landlords, the message is blunt: compliance is becoming a selling point for agents, and a cost pressure for anyone still trying to manage everything alone.
Foxtons sees compliance shift helping lettings
In its first-quarter trading update, Foxtons said lettings revenue rose 5 percent to £26.4m, even as sales revenue fell 35 percent to £10.7m. The group said organic growth came from property management cross-sales, Build to Rent revenue and previous acquisitions, while weak buyer demand dragged on its sales division.
The most relevant line for landlords was chief executive Guy Gittins, chief executive officer of Foxtons, saying the 1 May implementation of the Renters’ Rights Act is expected to create growth opportunities for the business. He said higher regulatory requirements underline the value of working with a trusted and professional agent, and said Foxtons’ compliance capabilities position it to protect landlords’ investments and win market share.
That does not mean every landlord now needs a large corporate agent. But it does reinforce a wider industry trend: regulation is tilting the market towards firms that can absorb admin, process change and legal risk at scale. Smaller landlords who self-manage may increasingly decide that saved fees are not worth the workload.
Sales weakness shows the other side of the market
Foxtons’ update also offered a warning about the wider property backdrop. The company blamed lower-than-expected buyer activity on geopolitical uncertainty, rising mortgage rates and reduced mortgage product availability. That matters for landlords considering a sale, refinance or portfolio reshuffle, because a softer sales market can lengthen decision times even where tenant demand stays firm.
Landlord Knowledge’s report on a major letting franchise losing 4,000 homes showed the sector is still dealing with landlords exiting before the new regime starts. Its recent coverage of tighter Right to Rent anti-discrimination rules also underlined how fast the compliance burden is building for both agents and landlords.
This follows Landlord Knowledge’s warning on fines for getting the new information sheet process wrong, which highlighted how minor paperwork errors can now carry meaningful penalties. Foxtons’ latest update suggests bigger agencies see that pressure not as a threat, but as a route to win more fully managed instructions.
The contrarian angle for landlords is that agent demand may rise even if tenant demand does not. In other words, the act could help larger agents grow without fixing the underlying supply problem in the private rented sector. If more landlords hand over management but fewer buy or retain stock, tenants may still face tighter choice and higher rents.
For portfolio landlords, the question is practical rather than ideological. If systems, inspections, rent review processes and document handling are already watertight, self-management may still make sense. If not, the savings from going solo could disappear quickly once disputes, delays or fines enter the picture. The primary Foxtons Q1 2026 trading update makes clear the company is betting on that shift.
What this means for landlords
- If you self-manage: check whether your systems are ready for 1 May, not just your tenancy documents.
- If you use an agent: ask exactly what compliance work is included before fees rise.
- Watch for: agents using RRA risk to justify higher charges without improving service.
- Think ahead: a weaker sales market could limit easy exits if compliance problems build.
- Bottom line: regulation is increasing the value of competent management, but not every landlord needs the most expensive agent.
Editor’s view
Foxtons is probably right that regulation will push more landlords towards managed services. But that is not the same as saying landlords should simply accept higher fees. The winners here will be the agents that can prove they reduce risk, not just the ones with the loudest compliance pitch.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 24 April 2026
Sources: Foxtons, London Stock Exchange
Related reading: Home Office tightens Right to Rent discrimination rules
📘 Renters’ Rights Act: Complete Landlord Guide
Everything you need to know about the new rules – 1 May 2026
