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Connells Group
Connells Group
from Wikipedia

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

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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

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from Grokipedia

Connells Limited, trading as Connells Group, is a British property services company headquartered in , , specializing in estate agency and related services. 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 . Its core offerings include residential sales and lettings, mortgage brokerage, , surveys, energy performance certificates, and , serving both individual and institutional clients.
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 sector, with pre-tax profits reaching £61 million in the year ending 2024, a significant increase from prior periods. Connells Group emphasizes to streamline transactions, claiming to handle millions of interactions annually through its nationwide presence. Recent operational improvements, such as optimizations, have contributed to cost savings and enhanced efficiency. 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. 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.

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 , , focusing on a people-oriented approach to property transactions. Connell, an entrepreneur, built the business on principles of and , emphasizing and retention of talent in an industry reliant on personal relationships. 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. 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. This period saw steady organic expansion, reaching 20 branches by 1977, primarily in the Midlands and Southeast England. Into the 1980s, Connells accelerated growth amid rising 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. This listing provided capital for further scaling, solidifying its position as a high-street leader before broader national diversification in later decades.

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 and subsequently purchased the western division of Prudential Property Services, expanding its branch network to approximately 150 locations. This acquisition marked a key step in broadening its footprint beyond the initial base. By 1996, acquired the group in a , retaining senior management shareholding and enabling further organic and inorganic growth. The early 2000s accelerated Connells Group's scale through strategic initiatives and high-profile deals. In 2000, it co-founded , 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 before partial divestment. Complementary services expanded with the 2002 establishment of Connells Relocation Services and acquisition of Direct Property Lawyers. The pivotal 2003 acquisition of estate agency from Royal & Sun in October added extensive coverage, bringing the total branch network to around 500 nationwide, alongside the purchase of Sharman Quinney. 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. Into the 2010s, solidified under full Skipton ownership, achieved in 2010, which facilitated focused investments amid economic recovery. That year, it acquired a major stake in Vibrant Energy Matters for energy assessments. Subsequent moves included shareholdings in LMS Group for and Just Wills for , plus acquisitions of Burchell Edwards and Be Legal. A 2012 strategic stake in Investments plc supported fund . Residential lettings expanded majorly from 2013, with 2014's £16.4 million purchase of Peter Alan adding 26 branches in . By mid-decade, acquisitions of Gascoigne Halman (2015, 18 branches in and ), Gilbert & Thomas, and others like Rook Matthews Sayer (2016, 16 branches in northeast ), Paul Dubberley, Touchstone Residential, and further densified the network, emphasizing regional consolidation and service diversification.

Recent Developments and Ownership (2020s)

Connells Group has been wholly owned by , the UK's fourth-largest building society, since 2010, when Skipton acquired full ownership to integrate it into its diversified portfolio. 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. A pivotal development occurred in December 2020, when agreed to acquire , the UK's largest estate agency chain, for £130 million from 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. This acquisition strengthened Connells' market position amid post-COVID recovery, with leveraging synergies in mortgages and to drive revenue growth. In January 2025, Connells underwent a major leadership restructuring, with long-serving executives Ian Fry, Giles Hart, Anthony , and Stuart Dare departing immediately, paving the way for new appointments including Chris Rosindale as of Estate Agency and Marc Lightfoot as Group Mortgage Services Director. Following this, the group resumed an aggressive acquisition strategy, completing 11 deals by September 2025, including Tylers Property Partnership (adding four branches in and ), Aspire Estate Agents (five branches in southwest ), Ridgewater Property (), and two Scottish firms, Campbell & Dean and The Property Store, alongside four lettings portfolios managing 900 additional properties. To support this growth, 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. 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.

Business Operations

Core Services and Revenue Streams

Connells Group's core services center on residential sales and lettings, delivered through a network exceeding 1,200 branches operating under more than 80 local and regional brands, such as , Hamptons, and Bairstow Eves. These brands facilitate transactions across most of the , handling over 10% of national house listings and nearly 80,000 exchanges in alone. Complementary services include new homes marketing, land and planning consultancy, and auctions, which support the primary agency functions by expanding market reach and transaction volume. 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. 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. Asset management, corporate lettings, and build-to-rent operations further diversify offerings, targeting institutional clients and private rented sector growth. Revenue streams predominantly stem from transaction commissions on sales (typically 1-3% of sale price, varying by agreement) and lettings management fees (often 8-12% of rental income plus tenant find fees). contribute through broker commissions on mortgages and products, though these saw an approximate 8% decline in revenue during challenging market conditions in recent years. and fees provide stable, non-cyclical income, bolstered by regulatory requirements for transactions, while ancillary streams like EPCs and add incremental earnings from compliance and portfolio oversight. Overall group revenue reached £1 billion in 2021, driven largely by estate agency and integrated services post-acquisitions, though detailed segmental breakdowns remain proprietary.

Brand Portfolio and Branch Network

Connells Group operates over 80 local estate agency specializing in residential sales and lettings, supplemented by approximately 15 supporting for ancillary services. This portfolio structure preserves regional recognition and while integrating national operational efficiencies, with acquired or developed to dominate local markets across the . Key estate agency include Connells, which maintains over 180 branches focused on core sales and lettings; William H. Brown, with more than 100 offices primarily in eastern including , , and ; and Hamptons, offering upscale services in , , and international markets. Additional prominent brands target specific geographies, such as Slater Hogg & Howison in west-central , John Francis across , Fox & Sons with over 50 South Coast offices from to , and Bairstow Eves in areas like , , and the . Supporting brands address complementary needs, including Connells Survey & Valuation for property inspections, Direct Property Lawyers for legal transfers, Intelligence for broking services established in 1996, and Vibrant Energy Matters as a leading provider of Performance Certificates. These ancillary operations, such as Asset Management Group for institutional clients and Lambert Smith Hampton for commercial , generate diversified revenue beyond front-line agency activities. The branch network spans more than 1,200 high-street locations throughout the , providing broad geographic coverage from urban centers like and to rural areas in the South West, , and . 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 (Tylers with four branches) and south-west (Aspire with five branches) to bolster .

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. 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. 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. 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. Key operational metrics highlight the group's scale: in 2024, it managed over 10% of house listings, reinforcing its position as a leading estate agency network with approximately 1,500 branches under brands like , , and Belvoir. streams primarily derive from sales commissions (around 60-70% historically, though exact 2024 splits undisclosed), lettings, and , with profitability sensitive to transaction volumes and average property values averaging £359,000 in recent quarters.
YearRevenue (£ million)Profit Before Tax (£ million)
20221,000111.3
202395113.8
20241,06961.3
The table above summarizes core financial trends, with EBITDA reaching £181.1 million in 2022 as a high-water mark for operational efficiency before market softening. As a of , Connells' performance contributes to parent-group stability, though exposure to cyclical housing cycles remains a profitability risk factor.

Market Influence and Reports

Connells Group commands the largest in the United Kingdom's estate agents industry, operating more than 1,200 branches under over 80 brands and exerting substantial influence on residential sales and lettings dynamics. In 2024, it processed over 10% of all house listings and completed nearly 80,000 property exchanges, enabling it to shape local pricing trends and transaction volumes through its extensive network. The group's scale amplifies its role in market recovery, with revenue climbing 12% to £1,069 million and pre-tax profits surging to £61.3 million in 2024 from £13.8 million the prior year, driven by heightened instructions and completions amid stabilizing demand. This performance, as owner Skipton Group's largest contributor, underscores Connells' leverage in influencing sector-wide profitability and acquisition strategies, including 11 lettings portfolio expansions in 2025 that boosted its managed stock toward 4,000 properties. Connells Group issues quarterly market reports synthesizing proprietary data from its estate agency, land and new homes, lettings, mortgage, surveys and valuations, and divisions to gauge national and regional trends. These analyses track indicators like average asking prices (£302,961 in Q4 2024, up 2.9% year-over-year), new lettings instructions, and transaction growth in segments such as first-time buyers and buy-to-let, often revealing supply uplifts (e.g., 17% more new homes available entering 2024 versus 2022) that inform industry expectations. External assessments, including IBISWorld industry profiles, highlight Connells' dominance as a factor in competitive pressures, with its data-driven reports cited for market steadiness, such as modest price dips (-0.3% monthly to £298,184 average in October 2025) amid evened supply-demand balances.

Controversies

Allegations of Conditional Selling

In July 2025, a investigation alleged that staff at a branch engaged in conditional selling by prioritizing property offers from buyers who agreed to use the company's in-house and services over those from independent providers. The undercover reporting captured agents discussing tactics to favor "internal" buyers, claiming such offers would be presented first to sellers to encourage uptake of Connells' affiliated services, potentially disadvantaging external brokers and solicitors. Connells rejected these accusations, stating that no conditional selling occurred and that "no harm has been caused" to the simulated customer, emphasizing compliance with legal standards and training protocols. The allegations echoed prior concerns, including a 2023 Southampton County Court ruling that found liable for conditional selling practices, resulting in an £8,000 redress payment to a former employed broker who challenged the firm's referral policies. In that case, the court determined that had pressured clients toward its own services, breaching fair trading expectations under the from Unfair Trading Regulations 2008. responded by launching an internal investigation into the incident, as it had in similar prior complaints, asserting that such practices were not systemic. Industry observers, including mortgage brokers, criticized these tactics as undermining in a market where estate agents like control initial buyer-seller interactions, potentially inflating costs through tied services without explicit disclosure. A subsequent survey cited in media reports claimed that approximately 20% of recent homebuyers encountered conditional selling pressures, with ' practices highlighted post-Panorama as emblematic of broader sector issues. maintained that its referral processes are voluntary and compliant with codes from bodies like The Property Ombudsman, to which it is a signatory, denying any intent to coerce.

Regulatory Scrutiny and Company Responses

In July 2022, Connells Group initiated an internal investigation following allegations that staff at certain branches had conditioned the acceptance of buyer offers on the use of the company's in-house brokerage services, a practice known as conditional selling. The company described itself as "concerned" by the reports, emphasizing its policies against such tactics and its commitment to treating customers fairly, though no formal regulatory sanctions were imposed at the time. A investigation broadcast on July 14, 2025, featured undercover footage and whistleblower accounts alleging that agents prioritized commissions by steering clients toward affiliated conveyancing and mortgage providers, potentially breaching consumer protection standards under the Consumer Protection from Unfair Trading Regulations 2008. The program highlighted instances where agents allegedly discouraged independent choices, raising questions about compliance with codes enforced by The (TPO), of which is a member. In response, rejected "any accusation of conditional selling," asserting that its processes ensured no harm to customers and that it maintained robust training and oversight to prevent misconduct. Connells Group operates under the oversight of the (FCA) for its , including intermediation via Connells Limited, which carries requirements or restrictions on its permitted activities as noted in the FCA Register. For non-financial complaints, the company adheres to redress schemes such as TPO for estate agency matters and the Centre for Effective Dispute Resolution (CEDR) for surveying services, with internal complaints procedures directing unresolved issues to these bodies. No public records indicate FCA fines or TPO awards specifically against Connells for conditional selling as of October 2025, though the 2025 report prompted industry calls for enhanced regulatory enforcement to address systemic pressures on agents' commissions.

Other Criticisms and Industry Context

Customer reviews of Connells Group's services, particularly in lettings and , frequently highlight unresponsiveness to requests, delays in repairs, and overall , contributing to low aggregate ratings on platforms like , where Connells scores 1.7 out of 5 from 1,685 reviews as of 2025. Specific tenant complaints describe "endless problems" with fully managed properties, including failure to address habitability issues despite repeated notifications. Similarly, the company's survey and valuation division receives a 2.6 out of 5 rating from 288 reviews, with users citing "highly unprofessional, lazy, and extremely incompetent" practices bordering on . Employee feedback underscores internal operational strains, portraying Connells as an employer where staff feel underappreciated, overworked, and underpaid, potentially exacerbating service quality issues amid high-pressure sales environments. Instances of property mismanagement, such as prolonged damp and mould in rental units under Connells' oversight, have drawn external scrutiny, as seen in a 2024 case involving a landlord's tenants who reported years of unresolved issues. In the broader UK estate agency sector during the 2020s, these criticisms align with systemic challenges, including a 27% rise in formal complaints to The Property Ombudsman in 2024, driven by transaction delays, , and service failures amid volatile housing markets marked by high interest rates and . Industry-wide distrust is evident, with surveys indicating 76% of consumers lack confidence in agents due to perceived low entry barriers, inconsistent practices, and resistance to technological shifts like AI-driven valuations. Consolidation pressures and cost-of-living impacts have intensified scrutiny on letting agencies, where profit margins have contracted—mirroring Connells' own 84% operating profit drop in 2023—prompting calls for regulatory reforms to enforce transparency and buyer protections.

References

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