Savills sees pause in prime property

THE growth in house prices in prime central London locations is expected to slow dramatically, according to upmarket estate agency Savills. Chief executive Aubrey Adams said: 'We expect prices to continue rising albeit more slowly than last year. They went up by 8% last year. This year it will be more like 4% or 5%.'

Savills has not topped the £14m it procured for one house in Eaton Square, Belgravia, at the very beginning of last year.

Overall, 2001 proved a testing time for Savills. Even before the 11 September attacks on the US closed down the top end of the market for at least a month, Savills had warned that a slowing global economy would take its toll on full-year figures. The final tally for pre-tax profits was 16% lower at £21.5m than in the previous 12 months.

However, Adams said the fall in profits was mainly due to chunky one-off costs that the group has been forced to swallow. These included £2m spent on redeveloping Savills' discount shopping centre in Yorkshire and £1m invested in its US arm Trammell Crow.

Turnover was up by 10% to £238.2m in the year to 31 December. 'In the residential and commercial market, we are taking market share,' said Adams.

The shares were up 9p at 196 1/2p and the full dividend is 9.75p, an increase of 8%.