Connells Group has slipped to a £500,000 first-half loss, as weaker sales activity and slower transaction times took a heavy toll on the UK’s largest estate agency group.
The result marks a dramatic reversal from the £28.4m profit reported in the same period last year. Parent company Skipton Building Society said underlying pre-tax profit at Connells fell to £2m, down from £24.9m a year earlier.
In its interim results, Skipton blamed a subdued housing market, with group chief executive Stuart Haire pointing to the later-than-usual Budget and political uncertainty as factors weighing on buyer confidence.
The number of exchanged sales fell 7% year-on-year, while the group’s sales pipeline was 5% lower. Skipton also highlighted continuing delays in the conveyancing process, with transactions taking longer to progress from offer agreed to exchange.
The lettings division proved more resilient, benefiting from higher landlord fee income and a modest increase in the managed portfolio to 122,872 properties.
Across the wider Skipton Group, pre-tax profit fell to £110.3m, compared with £135.1m in the first half of 2025.
The company said in a statement: “Its breadth of businesses across the property value chain, including lettings and surveying services, provided an important buffer against the tougher market conditions in the estate agency business.
“Careful cost management and simplifying the structure of the business post acquisitions have been balanced with continued investment in areas that enhance quality, support growth and strengthen competitive advantage.
“Administrative expenses, excluding restructuring costs, have increased by £22.6m, driven in the main by salary inflation, as well as from investment spend and cost following acquisitions.”
The results cap a difficult week for Connells. Former chief executive David Livesey last week won an Employment Tribunal claim for age discrimination following his departure from the business after 33 years.
The group has also seen a number of senior departures in recent months, including former interim chief executive Richard Twigg, while current CEO Helen Charlesworth continues to oversee the integration of Countrywide, branch refurbishment programmes and investment in technology across the group’s network of around 1,200 offices.
