According to Skipton Group’s financial report for 2024, around 44% of new lending was to first-time buyers, a rise from 40% in the prior year. This is equal to over 20,000 first-time buyers getting onto the property ladder.
The group’s profit before tax came to £318.6m, a jump from £333.4m in the previous year.
Within that, Skipton Building Society’s profit before tax came to £209.9m, a drop from £283.7m in the prior year. The firm said it had “performed well despite net interest margin pressure”.
Skipton International’s profit before tax came to £31m, which is a fall from £47.3m in 2023. Net interest margin pressure was also cited.
The group net interest margin stood at 1.28%, which compares to 1.53% in the prior year. This was attributed to £377m more in interest payments year-on-year, with net interest income coming to £488.4m.
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Connells Group’s profits increased from £13.8m in 2023 to £61.3m in 2024.
The report stated that its group UK residential mortgages in arrears by three months or more made up 0.29% of mortgage accounts. This is below the industry average of 0.91%.
Connells Group generates £31.7bn of lending for mortgage providers
Skipton said £31.7bn of lending had been generated by Connells Group for UK mortgage lenders. This is up from £30.9bn in 2023.
Connells Group also upped its market share to over 10%, meaning it supports about one in 10 of all UK home purchases and sales.
The report found that Connells Group provided almost 79,000 exchanges on properties for sale and its lettings business had more than 126,000 properties under management.
The firm said that, through Connells Group’s partnership and part ownership of LMS, it had piloted and deployed a “market-first solution for streamlining and automating the proof of funds element of the transaction”.
Skipton said the firm said this was a step in digitising the home buying and selling process, adding that a third of house sales fall through before completion, which can cause “delays and disappointment for our members and customers, and for the professionals involved throughout the journey”.
Skipton Group will combine ‘collective efforts’ to help more members get a home
Stuart Haire (pictured), Skipton Group’s chief executive, said he was “deeply proud” of Skipton’s performance due to the strong financial results and “the impact we are making where it matters most”.
He continued: “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.
“2024 saw us deliver a record amount of support to aspiring homeowners, as well as us continuing to bolster our group. We delivered a group profit before tax of £318.6m. And with housing and financial stability essential for both personal wellbeing and the nation’s growth, we’re uniquely placed to harness our group capabilities to drive transformative change.”
Haire noted that by “combining our collective efforts across the group, and unlocking the power of our data”, the firm can offer “more opportunities for members to have a home, save for life ahead and support long-term financial wellbeing”.
“At a time when more people are struggling to buy their first homes or change their homes, and one in three people have no savings, it is more vital than ever that we play our role in building a more resilient society.
“Alongside our products and services, raising awareness and lobbying for societal change is also core to our purpose. Financial education is essential to unlock better outcomes, whether it be tackling challenges for first-time buyers, narrowing the advice gap, or how we all play our part in reaching net zero by 2050. We understand that we cannot do this alone, but collectively we can make a difference, and we will play a leading role,” he said.
