Savills trading in line but says election run-up to hit residential sales

Estate agency Savills said on Tuesday that residential transaction activity is expected to take a hit in the run-up to the general election on 8 June.

In its AGM statement, the company said trading in the year to date has been in line with its expectations and ahead of the corresponding period a year ago both on a reported and constant currency basis.

The group said it has maintained "a significant share" of the prime Central London investment and leasing markets, although market uncertainty continues to affect volumes. Outside London, its transactional volumes and professional and development services have grown over the comparable period in 2016.

Savills said that as anticipated, volumes in the UK prime residential market have been lower in the year to date compared with the very strong comparable period ahead of April 2016's rise in Stamp Duty.

"While we have started the year well, typically the first four months represent a disproportionately small element of the expected outturn for the full year. Against a political and economic backdrop which demonstrates greater levels of uncertainty than a few months ago, we continue to anticipate that our performance will remain in line with our expectations."

At 1100 BST, the shares were up 0.7% to 955.50p.