Data released by Connells – part of the Skipton Group – shows a dramatic profits slump.

In a statement to shareholders it says that Connells recorded underlying profit before tax of just £2.0m in the first six months of the year.

In the comparable period of 2025, the figure was £24.9m. 

And the statement makes clear that the slowdown in the sales market is the root cause. 

It says: “Its breadth of businesses across the property value chain, including Lettings and Surveying services, provided an important buffer against the tougher market conditions in the Estate Agency business. 

“Careful cost management and simplifying the structure of the business post acquisitions have been balanced with continued investment in areas that enhance quality, support growth and

strengthen competitive advantage. 

“Administrative expenses, excluding restructuring costs, have increased by £22.6m, driven in the main by salary inflation, as well as from investment spend and cost following acquisitions.”

The number of property transactions exchanged by Connells fell 7% compared with the strong first half of 2025.

The lettings said saw improvements in income from fees charged to landlords, and the company increased its lettings book marginally to 122,872 properties under management.

Overall the Skipton Group – which includes Skipton Building Society – delivered profit before tax of £110.3m in the first half of this year – for the same period of 2025 the figure was £135.1m.

Earlier this week it was revealed that the former chief executive of Connells had won claims for age discrimination and unfair dismissal after an employment tribunal ruled he was treated unlawfully when he left the company after 33 years.

David Livesey, who joined Connells in 1990 and became chief executive in 2008, resigned in December 2023, claiming that his relationship with Skipton Group bosses had broken down.