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Savills reported modest H1 revenue growth and higher interim dividend, but an 8% fall in UK residential re\u2011sales and a Q2 pause in transactions \u2013 blamed on fiscal uncertainty ahead of the autumn Budget and geopolitical nerves \u2013 prompted a share sell\u2011off and left management warning near\u2011term performance will hinge on clearer fiscal direction.<\/p>\n<\/div>\n
Savills has told investors that a slump in secondary residential sales and nervousness ahead of the government\u2019s autumn Budget weighed on activity in the second quarter, even as the group posted modest revenue growth across its global business in the first half of 2025. The estate agent said revenue from its UK residential re\u2011sales arm \u2014 which excludes new\u2011build transactions \u2014 fell by about 8% in the six months to the end of June, and warned that uncertainty around forthcoming fiscal decisions had a \u201cdampening effect\u201d on both private and corporate investment. The comments were made in the company\u2019s interim results statement. <\/p>\n
On a group basis Savills reported revenue of roughly \u00a31.13bn for the period, with reported pre\u2011tax profit rising sharply to about \u00a315.8m and underlying profit in the low\u2011\u00a320m range. Different market summaries set the underlying profit change at slightly different levels \u2014 some noting a 6% rise to \u00a323.3m, others describing a larger percentage increase \u2014 but all record the same headline earnings figure and an underlying basic earnings\u2011per\u2011share of about 11.7p. The board lifted the interim dividend to 7.4p a share. <\/p>\n
Investors reacted to the slower second quarter: Savills\u2019 shares fell more than 5% on the day the results were published as markets digested the Q2 pause in transactions. Market commentators noted that upbeat early\u2011year trading was tempered by the slowdown and that sentiment appeared to have been affected by both geopolitical uncertainty and expectations of nearer\u2011term tax changes. <\/p>\n
Management framed the weakness in transactional volumes as a near\u2011term pause rather than a structural problem. Chief executive Mark Ridley said in the results statement that \u201cQ2 saw a slowing of transactional activity as occupiers and investors digested the implications of tariffs and geopolitical events,\u201d and the group reported a 13% reduction in real\u2011estate investment volumes period\u2011on\u2011period in the UK. Savills also pointed to a fall in prime London exchange volumes and weaker turnover in certain overseas markets as contributors to the decline. <\/p>\n
There were bright spots. Sales of new\u2011build developments increased by around 13% year\u2011on\u2011year and the company\u2019s institutional residential and student\u2011housing business grew strongly, while its auction operation raised a record c.\u00a3420m across live and online sales \u2014 a performance Savills said reflected robust regional demand and widening participation in online bidding. At the same time, activity in Asia was softer: transaction volumes in China slipped substantially, which contributed to a double\u2011digit drop in investment volumes across the Asia\u2011Pacific region. <\/p>\n
The group\u2019s caution over UK activity explicitly linked back to the policy backdrop. Savills told investors that both actual and anticipated fiscal changes ahead of the autumn Budget had dented buyer and investor confidence, a view that sits alongside wider commentary from Westminster. Reporting on Chancellor Rachel Reeves\u2019 priorities has emphasised a push for productivity\u2011boosting investment while acknowledging the possibility of further tax measures to shore up the public finances \u2014 speculation that advisers and some market participants say is already changing behaviour. <\/p>\n
Wealth managers and advisers, in particular, have been signalling concern about potential changes to inheritance\u2011tax rules and other measures that could affect high\u2011net\u2011worth clients, prompting a rise in planning enquiries and adding to near\u2011term market caution. At the same time, housebuilders and sector analysts point to persistent affordability constraints: although interest and mortgage rates have eased from their peaks, they remain high enough to deter many buyers and cap demand in parts of the market. <\/p>\n
Analysts welcomed the diversified nature of Savills\u2019 income stream while urging caution over timing. Broker notes highlighted that transactional pipelines were reportedly growing and that, should volumes recover, Savills\u2019 earnings could rebound materially; but they also warned that the pace of recovery will be crucial and remains dependent on clearer fiscal direction and broader macroeconomic stabilisation. Savills has maintained its full\u2011year expectations while signalling that near\u2011term performance will be sensitive to how and when investment activity resumes. <\/p>\n