The chief executive of Foxtons has called on the new UK Prime Minister to prioritize reforms to stamp duty, as the London housing market experiences a significant slump. Guy Gittins stated that the property tax remains the "single biggest barrier to moving home" for a range of buyers, from first-time purchasers to those looking to downsize.
Foxtons anticipates that transaction volumes in London will fall to a record low this year, attributing the decline to a combination of higher interest rates and weak consumer confidence. The estate agency reported a 13 percent drop in sales revenue to £23.5 million for the half-year ending June 30, with total group revenue down 3 percent to £83.7 million. Pre-tax profit fell by 54 percent to £4.4 million.
The market for flats in the capital has also been affected by high service charges and safety concerns. Political instability in Britain and conflict in the Middle East have further contributed to reduced transaction volumes.
Despite challenging market conditions, Foxtons' lettings revenue remained flat, supported by growth in Build to Rent properties and acquisitions. The company has been expanding its advisory services for rentals and mortgages, revenue streams less susceptible to housing market fluctuations. To navigate the downturn in sales, Foxtons has implemented an operational review, including cost-saving measures and a reduction in staff. The number of fee earners decreased to 882 by the end of the first half of the year, down from 900 at the end of 2025. The company is also increasing its use of automation and artificial intelligence to reduce costs.
Shares in Foxtons have experienced a decline, dropping more than 17 percent over the past year. The company's performance reflects a broader downturn in the London housing market, exacerbated by ongoing economic pressures and policy decisions.