Editor's note: This brief was summarised by The Property AI Newsroom from a report by Property Industry Eye. Read the original article for full details.

Connells Reports £500,000 Loss Amid Slower Sales and Market Uncertainty

Connells Group has reported a £500,000 loss for the first half of the year, a significant reversal from the £28.4 million profit recorded in the same period last year. The UK’s largest estate agency group cited weaker sales activity and slower transaction times as key factors behind the downturn.

Parent company Skipton Building Society stated that Connells’ underlying pre-tax profit fell to £2 million, down from £24.9 million a year earlier. Skipton attributed the results to a subdued housing market, with group chief executive Stuart Haire highlighting the impact of a later-than-usual Budget and political uncertainty on buyer confidence.

The number of exchanged sales at Connells dropped by 7% year-on-year, and the group’s sales pipeline was reported to be 5% lower. Skipton also noted ongoing delays in the conveyancing process, with transactions taking longer to progress from offer agreed to exchange.

Lettings Division Shows Resilience

Despite the challenging sales environment, Connells’ lettings division remained more resilient. The division benefited from higher landlord fee income and a modest increase in the managed portfolio, which now stands at 122,872 properties.

Across the wider Skipton Group, pre-tax profit fell to £110.3 million, compared with £135.1 million in the first half of 2025. The company said that its range of businesses across the property value chain, including lettings and surveying services, provided an important buffer against tougher market conditions in estate agency.

Skipton also reported that administrative expenses, excluding restructuring costs, increased by £22.6 million, mainly due to salary inflation, investment spend, and costs following acquisitions.

Leadership Changes and Ongoing Integration

The results follow a difficult week for Connells, with former chief executive David Livesey winning an Employment Tribunal claim for age discrimination after his departure from the business. The group has also experienced several senior departures in recent months, including former interim chief executive Richard Twigg. Current CEO Helen Charlesworth continues to oversee the integration of Countrywide, branch refurbishment programmes, and investment in technology across Connells’ network of around 1,200 offices.