Savills sees London sales collapse

Jul 8 2008

UPMARKET property group Savills today reported a 45% drop in London sales and said the market downturn had begun to impact on prime country properties.

Savills said prices were being adjusted downwards by about 7.5% in central London, with only the “very top end” of the property market, where values exceed £5 million, proving “relatively immune” to the downturn.

In a trading update to the City, Savills said prime country property was now following the lead of London after initially holding up well.

Savills blamed the downturn on reduced access to mortgage finance and said the difficult trading conditions were now being seen in many parts of Europe.

The company is best known in the UK for its estate agency and commercial property investment businesses, although the group also operates in property planning and valuation consultancy, fund management, financial services, and property management, which contribute around 40% of operating profit.

A quarter of its revenues also come from its businesses across Asia Pacific, which has seen more resilient trading conditions.