Trading Statement

Savills PLC
2 July 2002



                                  SAVILLS plc

                          ('Savills' or the 'Company')


For Immediate Release                                                2 July 2002

                            Half Year Trading Update

Savills, the international property adviser, is pleased to announce a trading
update for the half-year, prior to the interim results for the first half of
2002, which are scheduled for release on 4 September 2002.

Overview

At the time of our Annual General Meeting on 30 April 2002 the Chairman reported
a satisfactory start to 2002. Despite the continuing weaknesses in commercial
leasing and the Asian transactional markets, the investment, residential and the
Asian property management markets gave the Directors confidence in the prospects
for the property sector. We remain confident about the outlook as business has
strengthened in both the UK and overseas.

Main Business Streams:

Transactional

Residential markets in the UK are firm and we have an excellent current book of
instructions, both in London and the Country. The New Homes market continues to
be particularly buoyant despite widespread concern in the Press about the
buy-to-let market.

The property investment markets throughout the UK remain strong with significant
demand for property from domestic, private and institutional as well as overseas
buyers. This increased demand reflects in part investor's lack of confidence in
the stock markets.

Tenant demand in London and the South East is being adversely affected by the
downturn in the technology based industries in particular. However outside
London and the South East demand remains robust with a number of major tenants
requiring new accommodation.

The European investment market continues to be very active and Savills is
benefiting from its strong position in that market. In Asia the level of
transactional income remains subdued and no significant upturn in activity is
currently anticipated. In Australia the market has been largely unaffected by
the global recession and the business should meet our expectations.

Consulting

We continue to develop our UK consultancy business, particularly commercial
valuation and building consultancy divisions, and to secure new clients.

Property Management

UK commercial property management has secured a number of notable new
instructions, in particular benefiting from the arrival of the international
investment team, where a number of new investment clients also transferred their
UK property management contracts to Savills. This, together with a strong Hong
Kong operation, should ensure marked growth in management income.

Facilities Management

Our facilities management business in Hong Kong remains competitive and is
performing in line with expectations.

Our joint venture with Trammell Crow Company (Trammell Crow Savills) has had a
frustrating half-year pursuing two potentially very large outsourcing contracts
for German companies, neither of which has materialised. As a result there is a
write-off of pursuit costs during the period and of capitalised costs from 2001.
We are reviewing with Trammell Crow Company the future marketing strategy for
TCS and are likely to concentrate on smaller scale outsourcing projects.

Property Trading

The Group's principal trading arm has made a number of sales during the period
showing a satisfactory investment return.

The Mill Discount Department Store in Yorkshire is trading well, but has
disappointingly still not reached its full potential and we continue to make
changes to the tenant mix.

Financial Services

Our private client financial services business is performing strongly with
results ahead of plan. The prospects for this business remain excellent.

Outlook

Should continuing volatility in the financial markets result in a drop in levels
of activity, this may ultimately have an impact on our business. However, the
current strength of the property markets in which we operate gives us grounds
for cautious confidence about the likely underlying performance for the year.



ENDS



For further information, please contact:

Grandfield
Harry Hunt / Gareth Penn                                          020 7417 4170



                      This information is provided by RNS
            The company news service from the London Stock Exchange