Some of the UK's largest estate agency groups are carrying hundreds of millions of pounds of debt, and now face the dual challenge of more expensive borrowing and fewer property sales.
Inflation reached 3.5% in September, prompting the Bank of England to raise interest rates to 4%, with warnings that further increases could follow. Meanwhile, agreed property sales are running 8% below the same period last year, according to Rightmove.
Leaders Romans Group under financial strain
Leaders Romans Group's parent company, Hadrian Holding Limited, reported a 15% increase in revenue to £298.8 million in 2025. However, its annual finance costs reached £50.7 million, exceeding adjusted EBITDA. The group reported a pre-tax loss of £69.5 million, while bank borrowings rose to £418.7 million.
Some of its loan facilities carry interest rates of more than 11% at current benchmark rates. The business continued its acquisition programme, buying Chancellors and Northern Estate Agencies among others, with Farrar and Co following in March this year.
Lomond and Dwelly also affected
Lomond's former parent company, Chianti Holdings Limited's 2024 accounts showed a £32.1 million loss on turnover of £116.6 million, with interest costs of £32.2 million. The group has since been refinanced under new ownership, making its current financial position harder to compare.
Dwelly, which has completed 13 acquisitions this year, taking its managed property portfolio to more than 16,000, is backed by Prospire Technologies Ltd. Its 2025 accounts showed a £3.7 million loss, and its reported target is 50,000 managed properties by the end of 2026.
Connells pauses acquisitions
Connells, owned by Skipton Building Society, completed 13 acquisitions in 2025 but has paused further purchases during 2026, with plans to resume in 2027. Its chief executive described the decision as an opportunity to "fix the roof".
For independents and family-owned firms, this could be the opportunity of the year. Branches will come up, and books will come up. The firms with cash and no interest bill will be the buyers, and they will set the price.
Spicerhaart carries no debt, which the author notes is the only reason he can write this without a lender reading over his shoulder. The honest answer to who is building for the long term is: whoever is not paying 11% to stand still.
