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Foxtons reports a 16.5% rise in London new\u2011homes volumes in H1 2025 and stronger revenues, citing first\u2011time buyers and improved mortgage availability as drivers \u2014 but warns H2 depends on lender behaviour and interest\u2011rate moves.<\/p>\n<\/div>\n
Foxtons says it recorded a 16.5% rise in London new\u2011homes sales volumes in the first half of 2025 compared with the same period a year earlier, with a smaller 2.2% increase in the total value of those sales. According to the firm\u2019s internal data reported to the trade press, first\u2011time buyers accounted for the bulk of activity at 58.5% of purchases, landlords made up 25.4% and home movers 16.1%. Mortgage\u2011funded transactions represented 72.6% of sales, while cash buyers were 27.4%. <\/p>\n
Joel Ellis\u2011Duffy, Foxtons\u2019 new homes sales director, told The Intermediary that the London market \u201chas continued to show why it is a great long\u2011term investment\u201d and that first\u2011time buyers and off\u2011plan sales are providing a positive signal for the second half of the year. He added the firm expects momentum to continue as buyers benefit from recent improvements in the mortgage landscape and, he said, the Government\u2019s stated intention to ease lending criteria. The company\u2019s comments reflect an upbeat read of its own sales pipeline and customer mix rather than an independent market-wide audit. <\/p>\n
Those operational results sit alongside the group\u2019s formal interim financials filed to the market. Foxtons reported group revenue up around 10% to \u00a386.1m for the half\u2011year to 30 June 2025 and an adjusted operating profit increase of about 31% to \u00a312.3m, with sales revenue notably stronger and management highlighting improved conversion from under\u2011offer pipelines and gains in market share. The interim statement also flagged that part of the H1 activity was driven by timing effects around a Q1 stamp\u2011duty deadline and cautioned that the outlook for H2 remains dependent on interest\u2011rate movements. <\/p>\n
Those company figures sit against a backdrop of recent policy moves designed to widen mortgage access. In mid\u2011July the Government published a permanent Mortgage Guarantee Scheme intended to support 91\u201395% loan\u2011to\u2011value lending from July 2025, explicitly to help first\u2011time buyers and home movers access mortgages with smaller deposits by providing participating lenders with a guarantee for higher\u2011LTV lending. Officials say the scheme\u2019s aim is to increase availability of higher\u2011LTV products while setting out eligibility and operational rules for lenders. <\/p>\n
At the same time, the Bank of England\u2019s July 2025 Financial Stability Report set out adjustments to the loan\u2011to\u2011income (LTI) flow limit that will allow individual lenders greater flexibility to increase higher\u2011LTI lending while keeping an aggregate cap. The Financial Policy Committee framed the change as a way to improve access to credit for creditworthy borrowers, subject to prudential safeguards and monitoring to contain systemic risk. Taken together, the government and regulator measures signal official intent to ease some affordability constraints while attempting to guard financial stability. <\/p>\n
Foxtons also emphasised the continued importance of cash buyers \u2014 noting in its commentary that some cash purchases can exchange in around ten days \u2014 a point that matches wider industry guidance on chain\u2011free cash transactions. Industry advisers note genuine cash, chain\u2011free purchases can complete markedly faster than mortgage transactions \u2014 sometimes in as little as a week or two where title and searches are straightforward \u2014 but they warn sellers to verify proof of funds and to take independent legal advice to avoid scams or sub\u2011optimal pricing when prioritising speed. <\/p>\n
Independent property trade coverage has recorded similar signs of stronger new\u2011build activity across London, reporting rising exchange volumes and values, increased offers and developer appetite to launch schemes. Industry commentators point to improved buyer confidence in new\u2011build product and to brokers and agents winning greater market share as sales convert, while also noting that such momentum can be uneven by location and price band. <\/p>\n
Taken together, the data and policy shifts sketch a cautiously constructive picture for new\u2011homes activity in London: Foxtons\u2019 internal figures and market filings point to stronger volumes and profitability in H1, while government and regulatory changes are lowering some barriers for buyers. That said, the company itself \u2014 and its interim results \u2014 stress a degree of caution: H2 performance will be sensitive to interest\u2011rate developments and to how broadly lenders adopt greater flexibility in lending standards. Sellers and buyers should therefore weigh the benefits of quicker, cash\u2011led deals against the protections and pricing brought by more conventional mortgage transactions. <\/p>\n
For now, Foxtons is optimistic that the combination of policy easing, improved mortgage availability and sustained first\u2011time buyer demand will keep momentum into the autumn. Observers will be watching actual lender behaviour, the pace of scheme take\u2011up and whether broader macro moves on rates alter the pace of activity through the rest of 2025. <\/p>\n