Improved lettings and commission rates protect Winkworth from declining sales market

Upmarket franchised estate agency chain Winkworth says its perky lettings operation and increased sales commission rates have protected it from the worst of the stalling housing market during the first six months of this year.

Winkworth’s network’s revenues from property sales dropped by 7% from £11.6 million to £10.8 million while its lettings turnover increased by 6% from £9.7 million to £10.3 million.

Half the company’s income now comes from lettings and property management, it says.

This reduction in property sales income is in part due to plummeting prices in the capital, which are down 12% since the Brexit vote.

“In the country, prices have remained static, the market being more domestically focussed and less affected by stamp duty changes, as well as affordability ratios looking more attractive,” it says.

Winkworth claims that the local knowledge and experience of its franchisees have also helped the firm outperform many of its geographic competitors.

The company, whose HQ is off Oxford Street in Central London, has also grown its franchise network and says it is on target to open eight new branches this year.

The company has just over 100 offices mainly in London and the Home Counties and says the number of  agents looking to open or convert to a Winkworth office has more than doubled over the past 12 months.

“We made good progress in the first half of 2018, not only with a rise in lettings and property management income but also with a sharp increase in new franchise applicants,” says Dominic Agace, Winkworth’s CEO (left).