But support for first-time buyers hits record levels
Skipton Group, the parent company of Skipton Building Society, Connells, and other subsidiaries, reported a fall in profit for 2024 despite strong lending growth and amid continued support for first-time buyers.
The group’s profit before tax fell to £318.6 million, down from £333.4 million in 2023. The group paid £377 million more in interest year-on-year, which contributed to a reduction in its net interest margin to 1.28% from 1.53% in 2023.
Connells Group, Skipton’s estate agency arm, provided some relief to overall results, delivering a significant profit increase to £61.3 million from £13.8 million in 2023. Revenue at Connells also rose by 12% to £1.069 billion. However, the group’s overall profitability still suffered due to tighter margins across the business.
Skipton’s full-year results for 2024 showed varied performances for subsidiaries across the group. Skipton Building Society’s profit before tax fell to £209.9 million from £283.7 million, reflecting broader margin pressures. Skipton International posted £31 million in pre-tax profits, while Skipton Business Finance achieved record profits of over £10 million, with client advances exceeding £190 million. Jade, another subsidiary, increased profitability by 8% to £1.4 million.
Total mortgage balances rose 8.2% to £30.9 billion, with 44% of new lending directed towards first-time buyers, up from 40% in the previous year.
Mortgage arrears remained low, with only 0.29% of UK residential mortgages in arrears by three months or more, well below the industry average of 0.91%. Skipton also strengthened its capital position, with Common Equity Tier 1 (CET1) and leverage ratios of 28.7% and 6.6%, respectively.
“I’m deeply proud of Skipton’s performance — not just because of our continued strong financial results, but because of the impact we are making where it matters most,” said Stuart Haire (pictured), chief executive of Skipton Group. “Breaking down barriers to help more first-time buyers get their own home was and remains a core focus for us. We will keep leading with purpose to drive real change, making homeownership more possible for many more people.”
In 2024, Skipton launched its first Home Affordability Index in partnership with Oxford Economics, which highlighted the continued challenges facing first-time buyers. The findings showed that only one in eight first-time buyers could afford a home in their local area, while 80% lacked sufficient savings for a deposit. The group reaffirmed its commitment to supporting these buyers through products such as its 100% Track Record mortgage and Income Booster offering.
Skipton also invested in streamlining homebuying processes, piloting a digital solution with Legal Marketing Services (LMS) to automate the proof of funds process. This comes amid concerns that nearly one-third of UK property sales fall through before completion.
Skipton also continued to address the UK’s financial advice gap by offering regulated financial advice for those with at least £20,000 to invest. It also launched My Money Review, a free advisory service for all members, which led over half of users to reassess their financial planning.
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