Foxtons Shares Plunge 15% After Profit Warning on Weak UK Housing Market

Shares in Foxtons Group (LON:FOXT) plummeted by as much as 15% on Thursday after the British real estate agency issued a profit warning for the first half of 2026. The company cited a difficult housing market weighed down by political and economic headwinds, making its stock the top decliner on the FTSE Smallcap index.

Profit Forecast Lowered

Foxtons announced in a statement that it expects to report an adjusted operating profit of approximately £8.5 million ($11.5 million) for the six months ending June 30, 2026. This figure marks a significant reduction from the £12.3 million the company generated in the same period a year prior.

The sharp downward revision in its earnings outlook triggered an immediate negative reaction from investors, pushing the stock to its steepest single-day loss in recent trading.

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Challenging Market Conditions

Foxtons attributed the weaker outlook to a sales market that is "expected to remain subdued." The agency pointed to "ongoing political uncertainty and a challenging macroeconomic backdrop" as the primary factors impacting its performance.

This guidance suggests that persistent economic pressures, potentially including elevated interest rates and dampened consumer confidence, continue to cool the UK property sector. For investors, the warning highlights the sensitivity of real estate agencies to broader economic cycles and transaction volumes.