Foxtons cut its profit guidance after earnings for the first half of its financial year plunged by nearly a third to £8.5m year on year.
To offset the effect, the business said it saved around £4.5m in costs, including job cuts in its sales division and £1.5m from relocating its headquarters.
The redundancies affected under 2pc of its 1,500-strong workforce, with some roles moved to its letting business.
The business also warned the sales market was “expected to remain subdued amid ongoing political uncertainty and a challenging macroeconomic backdrop”.
Foxtons’s trading update has offered a glimpse into how the Renters’ Rights Act is affecting the property market as it takes effect.
The rules, introduced by Angela Rayner, the former deputy prime minister, have abolished so-called no-fault evictions, which previously allowed landlords to remove anti-social or non-paying tenants before the end of fixed-term agreements.
They also limit rent increases to once a year and extend the period during which tenants can be in rent arrears.
Data published this week by Hamptons show that landlords of around 100,000 homes will be unable to sell or rent out their properties because of the rules.
Experts have also warned that the laws risk driving landlords out of the sector, leading to a squeeze on the number of rental properties available. This could ultimately drive up rents.
More broadly, Britain’s housing market has been hit by weak demand, driven by persistently high interest rates caused by the war in Iran.
Others flagging a glum outlook for the housing market include building firm Crest Nicholson, which on Thursday blamed its woes on challenging market conditions.
It disclosed a £35m pre-tax loss during the six months to the end of April. It is also racing to secure amendments to its covenants as its debt pile grows. The board said it had been granted temporary waivers while talks with lenders were ongoing.
