Foxtons takes £3m hit from Renters' Rights Act as students rush to end contracts

See more This is Money on Google - save us as a Preferred Source Updated: 06:52 EDT, 16 July 2026 Foxtons has taken a £3million hit from the Renters’ Rights Act as tenants rush to end their contracts.The estate agent said it had seen an ‘elevated level of tenancy terminations’ during May and June, particularly among student renters.The legislation, which came into force on 1 May, abolished fixed tenancy terms and prevents landlords from raising rent more than once a year.It has shifted the balance of power away from landlords towards renters in the largest transformation to the private rental sector since the 1980s.Foxtons said that while the short-term volatility had resulted in the reversal of approximately £3million of revenue due, it believes it could still create ‘growth opportunities over the medium term.’ Foxtons said the Renters' Rights Act had prompted a rush among tenants to end their contractsThe London-listed firm said its sales division had experienced more of a challenge, as domestic political uncertainty and the ongoing conflict in the Middle East had weakened confidence and pushed interest rate expectations higher.Lenders have started to increase mortgage rates in recent days following the resumption of hostilities between the US and Iran.Foxtons said the uncertainty had resulted in lower market transaction volumes and it anticipated the market to ‘remain subdued’. Foxtons said it had taken ‘proactive steps’ to mitigate any prolonged issues. It said operational and organisational changes were ‘under consideration’.Foxtons shares plunged 9.9 per cent to 39.24p, having fallen over 30 per cent this year.It now expects first-half profits to come in at £8.5million, compared to £12.3million in the first half of 2025, when Foxtons was boosted by buyers flocking to the market ahead of changes to the stamp duty regime from 1 April 2025.DIY INVESTING PLATFORMSAJ BellAJ BellEasy investing and ready-made portfoliosHargreaves LansdownHargreaves LansdownFree fund dealing and investment ideasinteractive investorinteractive investorFlat-fee investing from £4.99 per monthFreetradeFreetradeInvesting Isa now free on basic planTrading 212Trading 212Free share dealing and no account feeAffiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.Compare the best investing account for you