Savills says the UK residential market remained subdued through much of 2025 but showed signs of recovery towards the end of the year, helping the global property adviser deliver higher profits and stronger revenues.
Yesterday the firm reported full-year revenue of £2.55bn, up 6%, with underlying profit before tax rising 11% to £145.3m, as activity improved across several markets after a slower middle part of the year.
Transactional income, including residential and commercial sales, increased despite what the company described as challenging conditions during the spring and summer.
In the UK, housing activity was held back by cautious buyer sentiment and uncertainty ahead of the Autumn Budget, particularly at the prime end of the market. However, Savills said the eventual outcome of the Budget was less severe than many had feared, leading to a surge in completions towards the end of the year.
GROWING CONFIDENCE
The company said the final quarter was the strongest for its transactional business since 2019, with growing confidence among buyers and sellers helping to rebuild pipelines across both residential and commercial property.
Savills also pointed to continued investment in technology and data as a key factor in supporting its UK residential agency business, helping improve efficiency and maintain its position in a competitive market.
STRONG PERFORMANCE
Simon Shaw (main picture), Group Chief Executive of Savills, says: “Despite the well-rehearsed challenges of tariffs and fiscal uncertainty, the Group has delivered a strong performance across the board.
“Whilst our Transaction Advisory business faced more challenging market conditions during Q2 and Q3 in some of our key markets, we continued to build strong transactional pipelines and were well positioned as clients’ confidence and appetite to transact accelerated into Q4, resulting in the strongest Q4 for our Transactional business since 2019.”
Looking ahead, Savills says it expects activity in property markets to improve during 2026, with stronger pipelines already building in the early months of the year.
The firm added that its diversified business model, including consultancy, property management and investment services, helped offset weaker residential sales earlier in the year and should continue to provide stability as the UK housing market gradually recovers.
