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Connells Group
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Connells Limited,[1] trading as Connells Group,[2] is a British estate agency[3] and property services company headquartered in Leighton Buzzard, and a subsidiary of Skipton Building Society.
Key Information
History
[edit]In 1936 the first Connells estate agency branch was opened in Luton, Bedfordshire.[4]
Connells acquired Sequence estate agency in 2003,[5] increasing its estate agency network to around 500 branches. In the same year, Connells acquired estate agency Sharman Quinney.[6]
In 2008 Connells Group sold its remaining 18% stake in Rightmove plc.[7]
In 2010 Skipton Building Society acquired nearly 100% of Connells Group. In the same year, Connells Group acquired a major shareholding in Vibrant Energy Matters.[8]
In 2011 Connells Group acquired a shareholding in the conveyancing and remortgaging panel management services provider LMS Group.[9] In the same year, Connells acquired independent estate agency Burchell Edwards including conveyancing firm Be Legal.[10]
In 2012 Connells acquired a 25% strategic stake in residential property fund manager, Hearthstone Investments plc.[11]
In 2014 Connells Group acquired the Peter Alan chain, which operates in south Wales, from the Principality Building Society for £16.4m.[12]
In 2015 Connells group acquired the Liverpool business of Farrell Heyworth an independent Estate Agent, based in the North West of England.[13]
In 2015 Connells Group acquired Gascoigne Halman estate agency, based in the North West of England.[14]
In 2015 Connells Group acquired Gilbert & Thomas, based in Rutland.[15]
In 2016 Connells Group acquired Rook Matthews Sayer estate agency, based in Newcastle upon Tyne.[16]
In 2016 Connells Group acquired Paul Dubberley, based in the West Midlands.[17]
In 2016 Connells Group acquired Touchstone Residential, operating in Kent, Buckinghamshire and the west country.[18]
In 2021, the group purchased Countrywide, with branches across the UK.[19]
Criticism
[edit]Connells Estate Agents have faced criticism on a number occasions of hard selling and pressuring clients to use the groups in-house mortgage services using tactics such as not allowing viewings or to place offers on properties before signing up to the in-house service.[20][21][22][23][24][25]
In February 2016 Connells appeared on a list of 92 companies which had in at least one instance been found to have failed to pay the minimum wage to employees.[26] In April 2018 Connells Survey and Valuation business was named in the top 10 of UK companies with the highest gender pay gap.[27]
References
[edit]- ^ "CONNELLS LIMITED overview - Find and update company information - GOV.UK". find-and-update.company-information.service.gov.uk. Retrieved 11 July 2024.
- ^ "CONNELLS GROUP LIMITED overview - Find and update company information - GOV.UK". find-and-update.company-information.service.gov.uk. Retrieved 11 July 2024.
- ^ "CONNELLS ESTATE AGENTS LIMITED overview - Find and update company information - GOV.UK". find-and-update.company-information.service.gov.uk. Retrieved 11 July 2024.
- ^ "Celebrating 80 years in estate agency!". The Negotiator. 16 April 2016. Retrieved 1 March 2021.
- ^ "Connells buys Sequence – Mortgage Strategy". 22 October 2003. Retrieved 27 July 2016.
- ^ "PROPERTY: Major stakehold sold to Connells". peterboroughtoday.co.uk. Retrieved 27 July 2016.
- ^ "Bombshell as Connells sells Rightmove holding..." Estate Agent Today. Retrieved 27 July 2016.
- ^ "Connells snap up national energy assessor firm..." Estate Agent Today. Retrieved 27 July 2016.
- ^ "LMS strengthened by acquisition by leading estate agents – Today's Conveyancer". 17 July 2011. Retrieved 27 July 2016.
- ^ "Connells snaps up 16-branch independent chain..." Estate Agent Today. Retrieved 27 July 2016.
- ^ "Connells acquires stake in buy-to-let investment fund..." Letting Agent Today. Retrieved 27 July 2016.
- ^ "Connells snaps up Peter Alan agency for £16.4m". 31 July 2014. Retrieved 27 July 2016.
- ^ "Connells firm Sequence snaps up major city business". 20 May 2015. Retrieved 27 July 2016.
- ^ Ltd, Insider Media. "Connells acquires Gascoigne Halman". Retrieved 27 July 2016.
- ^ Renshaw, Rosalind (1 December 2015). "Connells' firm Sharman Quinney snaps up independent agent". Property Industry Eye.
- ^ "Rook Matthews Sayer acquired by Connells Group | UNW". www.unw.co.uk. Archived from the original on 9 August 2016. Retrieved 27 July 2016.
- ^ "Connells acquires Paul Dubberley". The Negotiator. 18 May 2016.
- ^ Norwood, Graham (9 May 2016). "Another lettings acquisition for fast-growing Connells Group". Letting Agent Today.
- ^ Lewis, Nigel (8 March 2021). "Connells purchase of Countrywide officially completes". The Negotiator. Retrieved 9 March 2021.
- ^ Renshaw, Rosalind (13 March 2017). "Connells accused of hard-sell tactics to get buyers to use mortgage services". Property Industry Eye.
- ^ "Connells under fire for 'strong arm' mortgage tactics..." Estate Agent Today.
- ^ "Consumers pressured to use in-house mortgage staff by estate agents". 20 March 2018.
- ^ Willis, Amy (10 March 2017). "The great mortgage fix: How estate agents are tricking buyers into spending more".
- ^ Renshaw, Rosalind (15 June 2015). "Pair claim they lost chance to buy home after refusing mortgage service". Property Industry Eye.
- ^ "Dodgy estate agency practices put under spotlight in ..." Estate Agent Today.
- ^ Jones, Alan; Rampen, Julia (5 February 2016). "Is your boss on the list? 92 employers named for denying workers minimum wage". mirror.
- ^ "The worst gender pay gap offenders in each sector have been revealed". The Independent. 9 April 2018.
External links
[edit]Connells Group
View on GrokipediaConnells Limited, trading as Connells Group, is a British property services company headquartered in Leighton Buzzard, Bedfordshire, specializing in estate agency and related services.[1] Founded in 1936 with its first branch, the group has expanded to become the United Kingdom's largest high street estate agency network, operating over 1,200 branches under multiple brands across England and Wales.[2][3] Its core offerings include residential sales and lettings, mortgage brokerage, conveyancing, surveys, energy performance certificates, and asset management, serving both individual and institutional clients.[3] The company's growth has been marked by strategic acquisitions and organic expansion, establishing it as one of the most profitable entities in the UK property sector, with pre-tax profits reaching £61 million in the year ending 2024, a significant increase from prior periods.[4] Connells Group emphasizes integrated services to streamline property transactions, claiming to handle millions of customer interactions annually through its nationwide presence.[1] Recent operational improvements, such as fleet management optimizations, have contributed to cost savings and enhanced efficiency.[5] Despite its market dominance, Connells Group has faced repeated scrutiny over sales practices, including allegations of conditional selling—where clients are pressured to use in-house services like mortgages or conveyancing—and hard-selling tactics, which have been deemed illegal under UK estate agency regulations.[6][7] Investigative reports by broadcasters such as the BBC and Channel 4 have highlighted instances of unauthorized incentives and client coercion, prompting public criticism and regulatory concerns, though the company has denied systemic wrongdoing and asserted compliance with legal standards.[8][9]
History
Founding and Early Expansion (1936–1980s)
The Connells Group traces its origins to 1936, when Larry Connell established the first estate agency branch in Luton, Bedfordshire, focusing on a people-oriented approach to property transactions.[10] Connell, an entrepreneur, built the business on principles of meritocracy and innovation, emphasizing recruitment and retention of talent in an industry reliant on personal relationships.[10] By 1969, the network had expanded to ten branches and was acquired by the Constantine Group, marking a shift toward structured corporate growth while retaining entrepreneurial ethos.[2] In the early 1970s, following Connell's sale of the business, Connells introduced comprehensive staff training programs and entered the mortgage services sector, pioneering in-house mortgage consultations by 1976 as the first UK estate agency to do so.[10] [2] This period saw steady organic expansion, reaching 20 branches by 1977, primarily in the Midlands and Southeast England.[10] Into the 1980s, Connells accelerated growth amid rising UK property demand, incorporating early computerization for operational efficiency and reaching approximately 100 branches by the time of its 1984 flotation on the London Stock Exchange, one of the first for an estate agency network.[10] This listing provided capital for further scaling, solidifying its position as a high-street leader before broader national diversification in later decades.[10]Modern Growth and Acquisitions (1990s–2010s)
During the 1990s, Connells Group underwent significant ownership transitions and territorial expansions that laid the foundation for its national presence. In 1991, the company was acquired by Scottish Widows and subsequently purchased the western division of Prudential Property Services, expanding its branch network to approximately 150 locations.[2] This acquisition marked a key step in broadening its footprint beyond the initial Bedfordshire base. By 1996, Skipton Building Society acquired the group in a management buyout, retaining senior management shareholding and enabling further organic and inorganic growth.[2] The early 2000s accelerated Connells Group's scale through strategic initiatives and high-profile deals. In 2000, it co-founded Rightmove, the UK's leading online property portal, holding a substantial stake that contributed to its valuation of £400 million upon flotation in 2006, where Connells retained a 29% pre-float ownership before partial divestment.[2] Complementary services expanded with the 2002 establishment of Connells Relocation Services and acquisition of Conveyancing Direct Property Lawyers. The pivotal 2003 acquisition of Sequence estate agency from Royal & Sun Alliance in October added extensive coverage, bringing the total branch network to around 500 nationwide, alongside the purchase of Sharman Quinney.[2] [11] Further diversification followed in 2006 with a stake in TM Group for surveying services and in 2007 with shares in Asset Management Group and The New Homes Group, enhancing lettings, surveying, and new-build operations.[2] Into the 2010s, Connells solidified under full Skipton ownership, achieved in 2010, which facilitated focused investments amid economic recovery.[2] That year, it acquired a major stake in Vibrant Energy Matters for energy assessments.[2] Subsequent moves included 2011 shareholdings in LMS Group for conveyancing and Just Wills for estate planning, plus acquisitions of Burchell Edwards and Be Legal.[2] A 2012 strategic stake in Hearthstone Investments plc supported property fund management.[2] Residential lettings expanded majorly from 2013, with 2014's £16.4 million purchase of Peter Alan adding 26 branches in south Wales.[2] [12] By mid-decade, acquisitions of Gascoigne Halman (2015, 18 branches in Manchester and Cheshire), Gilbert & Thomas, and others like Rook Matthews Sayer (2016, 16 branches in northeast England), Paul Dubberley, Touchstone Residential, and Kevin Henry further densified the network, emphasizing regional consolidation and service diversification.[2]Recent Developments and Ownership (2020s)
Connells Group has been wholly owned by Skipton Building Society, the UK's fourth-largest building society, since 2010, when Skipton acquired full ownership to integrate it into its diversified financial services portfolio.[1][2] This structure provides Connells with financial backing from Skipton's £30 billion in assets as of 2024, enabling sustained investment in expansion while contributing dividends, such as £20 million to Skipton in 2024 from Connells' operations.[13] A pivotal development occurred in December 2020, when Connells agreed to acquire Countrywide, the UK's largest estate agency chain, for £130 million from private equity firm Blackstone, a deal completed in early 2021 that significantly expanded Connells' branch network to over 1,000 locations and integrated brands like Bairstow Eves and Spicerhaart.[14] This acquisition strengthened Connells' market position amid post-COVID recovery, with Skipton leveraging synergies in mortgages and conveyancing to drive revenue growth.[15] In January 2025, Connells underwent a major leadership restructuring, with long-serving executives Ian Fry, Giles Hart, Anthony Glasgow, and Stuart Dare departing immediately, paving the way for new appointments including Chris Rosindale as Chief Operating Officer of Estate Agency and Marc Lightfoot as Group Mortgage Services Director.[16][17] Following this, the group resumed an aggressive acquisition strategy, completing 11 deals by September 2025, including Tylers Property Partnership (adding four branches in Cambridgeshire and Suffolk), Aspire Estate Agents (five branches in southwest London), Ridgewater Property (Devon), and two Scottish firms, Campbell & Dean and The Property Store, alongside four lettings portfolios managing 900 additional properties.[18][19][20] To support this growth, Connells appointed financial services experts Andrew Bottomley and Ash Piranie as non-executive directors in June 2025, enhancing board expertise in risk, transformation, and customer strategy.[21] Skipton Group's first-half 2025 results reflected Connells' contributions to pre-tax profits of £135.1 million, amid resilient property market conditions with 3% year-on-year increases in new instructions and steady sales volumes per Connells' Q2 2025 report.[6][22]Business Operations
Core Services and Revenue Streams
Connells Group's core services center on residential property sales and lettings, delivered through a network exceeding 1,200 branches operating under more than 80 local and regional brands, such as Connells, Hamptons, and Bairstow Eves.[1] These brands facilitate transactions across most of the UK, handling over 10% of national house listings and nearly 80,000 property exchanges in 2024 alone.[23] Complementary services include new homes marketing, land and planning consultancy, and property auctions, which support the primary agency functions by expanding market reach and transaction volume.[1] Financial and ancillary services form integral revenue-generating pillars, with mortgage broking provided through specialist networks like Dynamo and Mortgage Intelligence, enabling commission-based earnings from arranged loans and related advice.[24] Conveyancing is handled by in-house solicitors at Conveyancing Direct Property Lawyers, covering sales, purchases, and remortgages, while surveying and valuation services via Connells Survey & Valuation generate fees for homebuyer reports, landlord compliance checks, and EPC issuance.[24] Asset management, corporate lettings, and build-to-rent operations further diversify offerings, targeting institutional clients and private rented sector growth.[1] Revenue streams predominantly stem from transaction commissions on property sales (typically 1-3% of sale price, varying by agreement) and lettings management fees (often 8-12% of rental income plus tenant find fees).[25] Financial services contribute through broker commissions on mortgages and insurance products, though these saw an approximate 8% decline in revenue during challenging market conditions in recent years.[4] Surveying and conveyancing fees provide stable, non-cyclical income, bolstered by regulatory requirements for property transactions, while ancillary streams like EPCs and asset management add incremental earnings from compliance and portfolio oversight.[1] Overall group revenue reached £1 billion in 2021, driven largely by estate agency and integrated services post-acquisitions, though detailed segmental breakdowns remain proprietary.[26]Brand Portfolio and Branch Network
Connells Group operates over 80 local estate agency brands specializing in residential sales and lettings, supplemented by approximately 15 supporting brands for ancillary property services. This portfolio structure preserves regional brand recognition and customer loyalty while integrating national operational efficiencies, with brands acquired or developed to dominate local markets across the UK. Key estate agency brands include Connells, which maintains over 180 branches focused on core sales and lettings; William H. Brown, with more than 100 offices primarily in eastern England including Yorkshire, Lincolnshire, and East Anglia; and Hamptons, offering upscale services in London, Surrey, and international markets.[24][1] Additional prominent brands target specific geographies, such as Slater Hogg & Howison in west-central Scotland, John Francis across Wales, Fox & Sons with over 50 South Coast offices from Cornwall to West Sussex, and Bairstow Eves in areas like London, Kent, and the Midlands.[24] Supporting brands address complementary needs, including Connells Survey & Valuation for property inspections, Conveyancing Direct Property Lawyers for legal transfers, Mortgage Intelligence for broking services established in 1996, and Vibrant Energy Matters as a leading provider of Energy Performance Certificates.[24] These ancillary operations, such as Asset Management Group for institutional clients and Lambert Smith Hampton for commercial real estate, generate diversified revenue beyond front-line agency activities.[24][1] The branch network spans more than 1,200 high-street locations throughout the UK, providing broad geographic coverage from urban centers like London and Manchester to rural areas in the South West, Midlands, and Scotland.[1][27] This scale supports over 100,000 annual property sales and extensive lettings management across 750+ dedicated branches, with recent 2025 acquisitions—totaling at least 11 deals—adding outlets in regions like Cambridgeshire (Tylers with four branches) and south-west London (Aspire with five branches) to bolster market penetration.[18][28][29]Financial Performance
Key Metrics and Profitability
Connells Group generated total revenue of £1,069 million in 2024, a 12% increase from £951 million in 2023, driven by higher housing transaction volumes and expanded market activity.[30] Profit before tax surged to £61.3 million in 2024 from £13.8 million in 2023, yielding an approximate margin of 5.7% compared to 1.5% the prior year, amid recovering UK property demand.[30] [4] This rebound followed a sharp downturn in 2023, when operating profits fell 84% to £1.8 million due to reduced sales agreements and economic pressures on the housing market, including elevated interest rates.[31] In contrast, 2022 marked peak performance with £1 billion in revenue and £111.3 million in pre-tax profit, bolstered by strong post-pandemic activity.[32] Key operational metrics highlight the group's scale: in 2024, it managed over 10% of UK house listings, reinforcing its position as a leading estate agency network with approximately 1,500 branches under brands like Connells, Sequence, and Belvoir.[23] Revenue streams primarily derive from sales commissions (around 60-70% historically, though exact 2024 splits undisclosed), lettings, and financial services, with profitability sensitive to transaction volumes and average property values averaging £359,000 in recent quarters.[33]| Year | Revenue (£ million) | Profit Before Tax (£ million) |
|---|---|---|
| 2022 | 1,000 | 111.3 |
| 2023 | 951 | 13.8 |
| 2024 | 1,069 | 61.3 |
