Connells Group, the UK's largest estate agency, has reported a £500,000 loss for the first half of the year, a substantial change from the £28.4 million profit recorded in the same period last year. This downturn is attributed to weaker sales activity and slower transaction times in the housing market.
Parent company Skipton Building Society stated that Connells' underlying pre-tax profit decreased to £2 million, down from £24.9 million a year earlier. Skipton's group chief executive, Stuart Haire, cited a subdued housing market, the later-than-usual Budget, and political uncertainty as factors affecting buyer confidence.
The group saw a 7% year-on-year fall in exchanged sales, with its sales pipeline also 5% lower. Delays in the conveyancing process, leading to longer transaction times from offer to exchange, were also highlighted. In contrast, the lettings division performed more robustly, benefiting from higher landlord fee income and a slight increase in its managed portfolio to 122,872 properties.
Across the wider Skipton Group, pre-tax profit fell to £110.3 million, compared with £135.1 million in the first half of 2025. The company noted that its diverse businesses, including lettings and surveying services, provided a buffer against the challenging conditions in the estate agency sector. Administrative expenses, excluding restructuring costs, rose by £22.6 million, primarily due to salary inflation, investment, and costs following acquisitions.