Savills has reported a resilient performance in its UK business for the year to 31 December 2025 with improving transactional momentum in the final quarter helping the Group deliver year-on-year growth in line with expectations despite a challenging domestic backdrop.
The global real estate adviser said 2025 was marked by uneven market conditions in the UK, with activity slowing through the middle of the year as investors and occupiers digested heightened political and fiscal uncertainty, including the delayed Autumn Budget.
Prime residential markets were particularly affected. However, confidence and appetite to transact improved progressively through Q4, resulting in a strong finish to the year.
CEO Mark Ridley retired at the end of 2025 and Simon Shaw (main picture) became Group Chief Executive in his place effective 1 January 2026. The Group anticipates that Nick Sanderson will join as Group Chief Financial Officer in the early part of next month.
ROBUST PIPELINES
Savills said it built robust transactional pipelines across its UK operations during the quieter months, enabling it to convert activity as sentiment recovered.
The Transactional division, which includes capital markets and leasing advisory, performed well overall despite subdued volumes earlier in the year.
Within the wider EMEA region, the UK remained a key contributor to growth, alongside particularly strong performance in the Middle East and continued resilience in Southern Europe.
IMPROVING CONDITIONS
Savills also pointed to improving conditions in parts of Europe following restructuring initiatives, notably in Germany, which supported profitability.
In contrast to its transactional exposure, the Group’s Less Transactional UK businesses provided stability throughout the year.
Property and Facilities Management delivered results in line with expectations, underpinned by recurring income and ongoing investment in systems and operational efficiency.
The Group continued to review its cost base and confirmed it expects to record restructuring charges of up to £30m for 2025.
STRONG PERFORMANCES
Savills’ UK consultancy services, including valuations, rural consultancy, building consultancy and project management, all delivered strong performances, reflecting continued demand for advisory services even during periods of lower transactional activity.
Savills Investment Management also provided support to Group performance, with stable revenues and improving investor demand for secure, core income strategies towards the end of the year.
Across the Group, £2.3bn of net new capital was raised in 2025, supported in part by improving sentiment in European markets.
Strong cash generation in the fourth quarter saw Savills end the year in a net cash position broadly in line with 2024, despite acquisition activity overseas and foreign exchange headwinds.
Looking ahead, Savills said uncertainty is likely to persist into 2026, but strengthening investor and occupier sentiment and healthy UK pipelines are expected to support a gradual recovery in activity.
Savills will report its full year results for 2025 on 12 March 2026.
