Savills plc has reported for the first six months of 2022, revealing a strong performance at group level tipping over £1bn, but residential sales revenue down 11% year on year.

Group revenue was £1,037.4m, up 11%  on 2021 H1, at £932.6m. Group pre-tax profit actually fell £13m, to £50.4m despite the higher revenue figure. The ‘Group’ results take in commercial sales, property management and investment management, all of which showed growth over first half of 2021. Indeed Assets Under Management, for its investment management arm grew 9% to an astonishing £26.5bn.

Mark Ridley, Group Chief Executive of Savills comments, “With inflation driving interest rates up globally, a new experience for many market participants, real estate markets began to adjust in the second quarter.

“We expect that process to continue through the second half of the year. However, there remains significant investor interest in the secure income characteristics of real estate.”

Industry analyst, Anthony Codling says, “Despite growing economic headwinds, Savills UK estate agency business has had a robust first half to 2022, although revenue and profits are down 8% and 34% respectively after a bumper Stamp Duty holiday-fuelled 2021, they are considerably ahead of the fairer comparison of the pre-pandemic levels of 2019.

“With the average price of homes sold in London at £2.2m and £1.4m in the regions, it will be fascinating to see how the cost of living crisis and rising mortgage rates impact Savills and those wealthier households higher up the UK housing ladder.”