London helps drive high-value home sales

The continuing appetite for top-end London properties drove half-year profits higher at upmarket estate agent Savills but the global economic turbulence is starting to have an impact elsewhere.

Savills said prime London properties were a safer haven for investors during the volatility, though UK transactions were down by 16 per cent outside of the UK capital.

The average deal value in London was up by nearly a third to 2.8 million and helped to lift the firm's UK estate agency transaction fees by 22 per cent to 47.9m, while Savills also increased its share of property deals worth over 5m.

Chief executive Jeremy Helsby said the two-tier market in UK, with London strong and the rest of country in the doldrums, was set to continue for the rest of the year and into 2012.

But Andrew Perratt, head of Savills Residential in Scotland, said Scottish offices were performing well. "High-end residential sales levels are keeping up, ensuring a prominent market position here," he said.

"Savills access to both UK and overseas buyers, many of whom are not reliant on mortgage finance, continues to be an important factor in our performance".

Savills employs 20,000 people across a network of 200 offices worldwide.

Underlying profits overall in the six months to June rose by 20 per cent to 20.6m on revenues of 336m, up from 304m. Pre-tax profits lifted 39 per cent to 20m.