Winkworth: lettings now 50% of turnover as sales market remains weak

A statement this morning by franchise agency Winkworth says lettings and property management now accounts for 50 per cent of its turnover.

The London-focussed firm says this is because sales transaction volumes remain “weak” in the current market with a low availability of stock.

It says prime central London prices stabilised some 15 to 20 per cent below the peak levels seen in 2014, while prices in greater London slipped by up to 10 per cent.

But the statement adds: “according to data collated by TwentyCI, in 2018 Winkworth ranked second [in London] by number of exchanges and third by number of new listings.”

It also saw an increase in revenue from lettings and management “and this business line now accounts for half of group turnover.”

It says total revenues rose last year and are expected to be within five per cent of market expectations while pre-tax profits are expected to be higher than in 2017 and slightly ahead of expectations of £1.4m. 

Over the course of the year Winkworth opened six new offices, merged four with others in neighbouring vicinities and closed one, raising the total number of franchised outlets at year end to 100 versus 99 in 2017.

Dominic Agace, Chief Executive Officer of Winkworth, says: “We are proud of what the Group was able to achieve in 2018 in a market still suffering from uncertainty, and this is further testimony to the hard work and dedication of our franchisees. 

“While the outlook remains hard to forecast, the market fundamentals remain sound with interest rates low, real wage growth and record levels of employment. We are encouraged by the sharp increase in applicants on our site for both property purchases and rentals seen in December."