Savills has posted a 40% rise in profits for the first half of this year, thanks to the seemingly unstoppable London property market.
Underlying profit at Savills before tax grew to £26m, up from £19.7m in the same period last year, while revenue was up 13% to £399m.
The firm said it was helped by an 18% rise in average prices of upmarket homes in London where the average sales ticket of a prime London property was £3.2m.
Fee income from estate agency jumped 15% to £52.5m, with a 5% rise in Savills’ transactions in London compensating for an 8% decline in sales outside the capital.
Chief executive Jeremy Heslby said that around 61% of buyers in London are domestic, and that there has been an increase in buy-to-let purchasing.
He said: “Understandably, property is going to remain attractive. If you can let it on a 4% return when you are getting next to nothing in the bank, you don’t need to be a genius to see that as an attractive proposition.”
.png)
Comments