Revenues double at Savills despite continuing London problems
Estate agency says high street network did well during first half of year but sales and lettings still dogged by AWOL international clients.
Savills has published jaw-dropping trading results for the first six months of the year including an astonishing 97% increase in revenue for its UK residential division.
Its ‘second hand agency business’ as the company quaintly calls its branch network in the UK, saw revenue rebound to £104.2 million, up from £52.9 million during the same period last year.
The company says its high street offices saw a 131% increase in exchange volumes within London and a 204% increase outside the capital.
This reflects the ongoing softer sales market in London particularly within its prime central neighbourhoods where the ongoing travel restrictions have dampened demand from wealthier international buyers.
Market conditions
Although its new homes division saw an overall 34% rise in revenue, it’s London newbuild business ‘continues to be affected by the relative scarcity of international buyers in the capital due to travel restrictions, whilst the regional business has thrived during the market conditions experienced over the first half of 2021’.
The company also says its lettings business overall saw a 27% drop in revenue, again a reflection of lower demand from international business people, students and medical trainees.
“Our transactional businesses have benefited from improving sentiment in most markets, although travel restrictions still represent an obstacle to cross-border capital deployment,” says Mark Ridley, Savills‘ Group Chief Executive (pictured).
“In particular, our Residential Transaction business delivered an exceptionally strong performance in the first half albeit we expect activity to return to more normal levels, particularly in the UK, during the second half of the year compared with a strong comparative period in H2 2020.”
