Is UK housing back on track? London estate agent Winkworth’s sales are on the up

Winkworth Estate Agents have announced a boost in sales figures after a two years of falling sales amid a tight housing market.

The company expects pre-tax profits for the year to be in line with market expectations of £2.4 million, and announced a shareholder dividend of 3p per share to be paid for the second quarter of this year.

This has been unchanged since late last year, and up slightly from 2.9p for most of 2023.

The franchise estate agency said that despite the positive sales, transaction times were still extended; it expected many of the sales to complete in the second half of the year.

The estate agent’s share price has slowly climbed back to 195p in the last six months after tumbling in late 2021 on poor results, and the pandemic slowdown.

Insolvencies of real estate investment companies increased by 16 per cent in 2023, with up to 738 businesses going under.

Residential property prices and transactions began to fall after interest rate hikes drove up commercial mortgage repayments and the cost-of-living crisis made it harder for buyers to repay them.

The news is a positive development for the sector, and an indication that a recovery in the market is underway.

The company opened three new London offices this year – in St Leonard’s, Leamington Spa and Stoke Newington, and resold four franchises.

In February, Winkworth announced that it was refocusing its compliance and training activities with the appointment of solicitor Tara Tan to its main board.

The firm said that the run-up to the general election has had less of an impact on the housing market than expected, with the exception of demand for prime properties.

“A combination of the Conservative Party’s removal of non-domiciled status, the Labour Party’s stated intention of adding VAT to private school fees, and the higher cost of finance have weighed on this sector,” Winkworth said.