Savills reporters uncertain outlook

High-end property group Savills today said 2008 prospects hinged on how soon financial markets shaken by the credit crunch recovered their stride.

Despite a 14% rise in underlying profits to £85.5m (€111.9m) last year, the company said uncertainty over City bonuses had driven a 2% fall in prices among prime central London properties in the final three months of 2007.

Savills is now expecting low property turnover and flat house price growth in 2008 following the credit crunch, which has also hit prices in the commercial property sector.

Chairman Peter Smith said: “The outlook for our UK and US commercial businesses and our UK residential and mortgage broking businesses continues to depend on how quickly confidence returns to financial markets.”