The chief executive of Foxtons has called for reform of the stamp duty tax, stating it is the largest impediment to activity in the London housing market. Guy Gittins made the appeal to the new Prime Minister, arguing that the tax is a significant barrier for first-time buyers, growing families, and those looking to downsize.
Despite the urgency expressed by Gittins, Prime Minister Andy Burnham has indicated that no immediate changes to the property tax are planned for the Autumn Budget. This stance by the government is seen as exacerbating the ongoing challenges within the London housing market, where successive tax increases have strained buyer affordability.
Foxtons anticipates that 2026 will record one of the lowest volumes of property transactions in London's history. This projection follows a substantial decrease in sales during the first half of the year, attributed to a combination of higher interest rates and diminished consumer confidence. The market for flats in the capital has also been negatively impacted by elevated service charges and lingering safety concerns following the Grenfell fire.
Political instability in Britain and geopolitical tensions in the Middle East have further contributed to reduced transaction volumes, according to Foxtons. In the six months leading up to June 30, the company reported a 13% decline in sales revenue, totaling £23.5 million, reflecting these challenging market conditions. Overall group revenue saw a 3% decrease to £83.7 million, with pre-tax profit dropping by 54% to £4.4 million.
Data from the four weeks preceding July 19 showed a 9% fall in the number of sales agreed compared to the same period in 2025. In contrast, lettings revenue remained stable, bolstered by growth in the Build to Rent sector and acquisition contributions totaling £1.7 million. The lettings market experienced some short-term volatility following the implementation of the Renters' Rights Act.
Foxtons has been strategically shifting its focus towards advising on rentals and mortgages, areas considered less susceptible to the fluctuations characteristic of the housing sales market. To navigate the sustained low sales volumes, the company has conducted an operational review, which has included workforce reductions and cost-saving measures. The average number of fee earners at Foxtons decreased to 882 by the end of the first half of the year, down from 900 at the close of the previous year. The company has also increased its adoption of automation and artificial intelligence to manage costs.
Shares in Foxtons experienced a slight dip of 0.38%, or 0.15p, to close at 39.55p on Thursday. Over the past year, the company's stock has fallen by more than 17%.