In a trading update to the City this morning, Winkworth tells investors there has been a 19% rise in completed sales in 2024 and is ‘bullish’ about its prospects in 2025.

The property franchise group says that as a result of ongoing falls in the cost of finance last year, households were rebalancing their needs after a long period of uncertainty, which led to a marked upturn in sales agreed.

Positive momentum

In H1 2024, sales agreed were up 19% year-on-year, in H2 2024 they were up by 27% and by 23% for the year as a whole. Completed sales in FY 2024 were 19% higher than in 2023, and the Board says it is pleased with the momentum going into FY 2025.

The report says buyers have been motivated by real wage growth and the anticipation of lower interest rates and expects activity to remain positive in FY 2025, with a particular weighting to Q1 as first-time buyers look to complete their purchases before the ending of the Stamp Duty discount in April 2025.

Slower lettings

The renewed focus on sales, however, was reflected in slower lettings activity. The update reveals lettings applicants in 2024 were 5% down on 2023 figures, but Winkworth expects full-year revenues to have risen by 5-6% as a result of rental price increases.

Winkworth’s full-year pre-tax profits, subject to audit, are expected to be in line with current market expectations of £2.35m (31 December 2023: £2.15m), with net cash at year-end to be at least £3.90m (31 December 2023: £4.55m).

We are in a good position to take advantage of an increase in sales transactions”.

The Company plans to announce its final results for the year ended 31 December 2024 on, or around, 17 April 2025.

It will pay an ordinary dividend of 3.3p per share for the fourth quarter of 2024 (Q4 2023: 3.0p per share), bringing the total ordinary dividend payments declared for FY 2024 to 12.3p per share (FY 2023: 11.7p per share), an increase of 5.13%.

Dominic Agace, Chief Executive Officer of Winkworth, commented: “The positive trends in sales activity witnessed in H2 2024 bode well as we enter 2025 and, as a well-balanced sales and lettings business, we are in a good position to take advantage of an increase in sales transactions.

“In 2024, we invested significantly in bringing new talent into the business, acquiring existing offices and supporting the expansion of existing franchisees. We expect these investments to bear fruit in 2025 and 2026 and to further strengthen our market position.”