Thursday, Aug 27, 2009
Reality in the UK housing market c/o Savills
Citywire: Estate agent Savills cautious on housing after profits all but disappear
Real estate giant Savills quashed hopes of a sustained recovery in housing markets in the near term this morning, after revealing its profits had all but vanished in the first six months of 2009. The internationally diversified group - which has businesses in Europe, the Middle East, the US and elsewhere, as well as the UK - warned that property markets generally were still being affected by a lack of mortgage finance.
Posted by jack c @ 10:17 AM (480 views) Add Comment
5 Comments
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1. paul said...
Why do they use this silly euphemism 'lack of mortgage finance' instead of the word 'overpriced'?
2. Karen said...
Quite, it is all so tedious. We have money in the bank and want to buy a house, but there is virtually nothing to buy that is sensibly priced.
3. Neil B said...
So sellers refuse to lower their asking prices. The market has dried up. There is no more free credit available. Big organisations like Savills have used their profits up as there are no more sales. This is one of the first signs that the cliff is steadily approaching.
4. brickormortis said...
correction, surely: "Savills are being affected by overinflated house prices, the problem manifesting itself in banks rightly refusing to lend to individuals who should know better than to try adn buy overpriced houses."
5. jack c said...
Here's a bit more on Savill's position full story @ www.mortgagestrategy.co.uk/cgi-bin/item.cgi?id=192423&nl=MS_DN&dep=webops&dte=270809
Savills’ financial services posts over £2m loss
Savills has posted an underlying loss of £2.1m before tax for its financial services arm for the six months to June 2009. Its financial services business comprises of residential and commercial brokerage Savills Private Finance and Savills Capital Advisors, a provider of corporate finance and mergers and acquisitions advice. In its 2008 results Savills posted a profit of just under £500,000 for its Savills Private Finance arm, compared to £5m in 2007.
But in the first six months of 2009 the financial services group saw a reduction in fee income of 48% down to £5.4m, compared to £10.4m in the first half of 2008.
It says this was largely a consequence of the extreme contraction of UK lending markets compared with the first half of 2008.
Savills’ financial services posts over £2m loss