Winkworth sales defy market upheaval after Mini-Budget

Winkworth, London’s upmarket estate agency franchisor, reports a sales increase of 38% despite market turmoil caused by the Mini-Budget.

The company says there was a dip in buyer registrations and some fall throughs, but the market bounced back in October, and it expects the recovery to continue this month.

Market conditions remained strong in Q3, with network sales 38% higher than in 2021, reflecting both an overhang of uncompleted transactions from Q2 and strong levels of demand, the company says in a trading update for the ten months ending 31 October.

Winkworth’s full year revenues are expected to exceed management forecasts, and full year pre-tax profits are ahead of the current market forecast of £2.1m.

Lettings were up by 13% over the same period, with rentals demand remaining strong.

Three new Winkworth offices are due to come on board over the coming twelve months.

Mixed results

The company reported mixed interim results in September, with revenues down by 18% to £4.28 million.

Network revenues were down by 24% to £27.7 million and while sales revenues dropped by 39% to £15 million, network lettings revenues were up by 8% to £12.7 million. Profit before taxation at the group was down by 46% to £1.07 million.

Dominic Agace, company CEO, (main picture) says: “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.”