Connells Group recorded a loss of £500,000 during the first six months of 2026, according to results released by parent company Skipton Building Society. The figure represents a significant reversal from the same period in 2025, when the estate agency group reported profits of £28.4 million.
Stuart Haire, Group Chief Executive of Skipton Building Society, attributed the loss to subdued market conditions caused by a delayed Budget and political uncertainty. The company noted that whilst the housing market remains active, buyer caution has impacted transaction volumes.
Transaction volumes decline
Connells experienced a 7% decline in exchanged contracts compared to the previous year, with its sales pipeline down 5%. The company also cited delays in the conveyancing process, with property transactions taking longer to progress from offer-agreed to exchange stage.
The results contrast with the first half of 2025, which benefited from a stamp duty change at the end of March 2025 that drove higher transaction volumes. The current market environment reflects broader challenges facing the UK housing sector this year.
Lettings performance and restructuring costs
Connells’ lettings division showed modest growth, with the company increasing its managed property portfolio to 122,872 units. Income from landlord fees also improved during the period.
The financial results were impacted by ongoing restructuring costs following the integration of Countrywide, which Connells acquired previously. Under Chief Executive Helen Charlesworth, the company has been refurbishing branches and implementing new technology across its 1,200 offices, including the installation of 15,000 new PCs and telephones.
Haire noted that parent company Skipton Building Society “continued to perform well however, with profits of £99.6m” during the same period.
Leadership changes
The results come during a period of management turnover at Connells Group. Former Chief Executive David Livesey recently won an age discrimination claim at an Employment Tribunal following his departure after 33 years with the company. Richard Twigg, who served as interim Chief Executive before Charlesworth’s appointment, has also left the business.
The financial performance reflects the challenges facing large estate agency networks as they navigate market headwinds and operational restructuring costs. The company’s ability to return to profitability will depend on transaction volumes recovering and the completion of its integration programme.
