Savills sees half-year profits surge 27% to £32.4m

Estate agency Savills has reported a surge in half-year profits, but also flagged a slowing UK residential market and warned over Brexit uncertainty.

The firm saw pre-tax profits rise 27% to £32.4 million in the six months to June 30, helped by a strong performance in Asia.

Revenues jumped 15% to £714.4 million.

But UK residential fee income decreased by 4% to £55 million as fewer house sales were completed.

It meant that the firm's UK residential transaction business saw underlying profits decline by 27% to £5.4 million.

Savills warned: “Increased levels of political and economic uncertainty created by the General Election and the ongoing negotiations to leave the EU make it difficult to predict market volumes for the rest of the year.”

The firm said increasing levels of global insecurity have driven a shift towards income-producing assets, which has boosted the London office market where the first half saw nearly £9 billion of transactions, 78% of which were to non-domestic investors.

These investors, Savills said, still see the UK as “comparatively secure”, despite Brexit.

Boss Jeremy Helsby said: “In an environment of ongoing political and economic uncertainty, we continue to anticipate that our performance for the full year will be in line with the board’s expectations.”

Ali Waggie/PA Wire