A short trading statement from Stock Market-listed London agency chain Winkworth shows just how vital the lettings sector is to its success.
Lettings income is 13 per cent up in the 10 months up to the end of October, when compared to the previous year “with London rentals continuing to be driven by higher prices rather than a significant increase in new mandates.”
The franchise chain says it’s expecting three new offices to come on board over the coming 12 months, and as a result of this buoyant level of activity in the second half of 2022, Winkworth’s full year revenues are expected to exceed management forecasts and its full year pre-tax profits to be ahead of the current market forecast of £2.1m.
Elsewhere in the statement is makes clear the damage done to confidence and business volumes by the short-lived Liz Truss government.
It says: “After the announcement of the mini budget at the end of September 2022, which led to a sharp rise in the cost of borrowing, new buying registrations fell significantly. Sales already underway, however, continued to progress, with a limited number of fall throughs and our results for October were good.
“With the steps taken to reverse most of the measures introduced in the mini budget we expect to see mortgage rates continuing to moderate and sales demand rebounding in November 2022, before we enter the traditionally quiet Christmas period. Rentals demand remains strong and the shortage of available properties continues to underpin the sales market.”
Chief executive Dominic Agace adds: “Winkworth has performed well in 2022, a year that has been marked by both political and economic uncertainty but, ultimately, benefited from strong levels of UK employment. While higher mortgage rates are leading the consensus to point to a weaker property market in 2023, we believe that our performance next year will be underpinned by the unfulfilled needs of homeowners to move, renewed interest in London property from international buyers and rising prices in the rentals market.”
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