Savills reveals estate agency revenues up 10% in ‘difficult market’

Further signs that the property sales market has weathered the past six months well come this morning from Savills’ UK operation.

Its revenues across all areas of operation including commercial have risen by 6% in the UK during the first half of the year to £435.9 million with underlying profits up 4% to £32.9 million.

But the company says its UK residential business performed strongly in “difficult market conditions” with revenue up 7% to £76.8m.

This was driven by 10% revenue growth within its estate agency business, which mitigated declines in both new development sales and its private rented sector or ‘BTR’ business. In sales, overall transaction volumes exchanged were up 4%.

The average value of London and regional residential property sold by Savills in the period was lower in London at £2.0m reflecting a greater share of the capital’s ‘core’ market which includes properties with values up to £1.5m and slightly reduced volumes traded in the higher value market.

Outside London the average value was stable at £1.3m. Revenue from the sale of new homes declined 22% which it says reflects reduced activity in the higher value London market and the continuation of low trading volumes outside London.

Pipelines

“We have improved transaction pipelines in many locations and, with our core bench strength in place to support clients, Savills is well positioned to benefit as markets progressively recover through the next 12-18 months. Our expectations for the current year remain unchanged,” says CEO Mark Ridley (main image)

Savills overall global half-year results show overall revenue up 5% to 1.06 billion with underlying profit before tax up 30% to £210.2 million.