Winkworth: Sales rebound expected before Christmas

Winkworth has predicted a sales demand rebound before the Christmas slowdown.

A trading update from the agency franchise brand revealed that new buyer registrations “fell significantly” after the disastrous September mini-Budget but are now expected to recover since new Chancellor Jeremy Hunt’s Autumn Statement.

The update said: “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.”

Winkworth said market conditions remained strong in the third quarter, with network sales 38% higher annually, reflecting both an overhang of uncompleted transactions from the second quarter and strong levels of demand.

Lettings were ahead by 13% over the same period, with London rentals continuing to be driven by higher prices rather than a significant increase in new mandates.

The company said it has a healthy pipeline of three new offices due to come on board over the coming twelve months.

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 our full year pre-tax profits to be ahead of the current market forecast of £2.1m, the trading update said.

Dominic Agace, chief executive of Winkworth, said: "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."