Some of the UK's largest estate agency groups are under increasing pressure as borrowing costs rise and property sales decline. Inflation hit 3.5% in September, prompting the Bank of England to increase interest rates to 4%, with potential for further rises.
Agreed property sales are currently 8% below figures from the same period last year, according to Rightmove. This combination of more expensive borrowing and reduced sales income is creating challenges for heavily indebted groups.
Leaders Romans Group, for example, saw its parent company, Hadrian Holding Limited, report a pre-tax loss of £69.5 million in 2025. The group's bank borrowings rose to £418.7 million, with annual finance costs reaching £50.7 million. Some of its loan facilities carry interest rates exceeding 11% at current benchmark rates.
Lomond's former parent company, Chianti Holdings Limited, reported a £32.1 million loss in its 2024 accounts, with interest costs of £32.2 million. Dwelly, which has completed 13 acquisitions this year, reported a £3.7 million loss in its 2025 accounts, despite ambitious growth plans.
In contrast, Connells, owned by Skipton Building Society, has paused further acquisitions in 2026 after completing 13 in 2025, with plans to resume in 2027. This decision was described by its chief executive as an opportunity to "fix the roof."