The difficulties of the property market in prime London and its suburbs and commuter towns have been laid by bare by the latest results from franchised network Winkworth.
Its head office operation has reported its network’s gross revenues for the first half of the year down by 9% year-on-year to £21.4m, sales down 18% to £11.7m and lettings down 2% to £6m.
The bright spots of the figures are property management revenues, which increased by 15% to £3.7 million, and the central London market where the weak pound has driven increased investment in property by overseas investors.
“Prices have remained steady in the more domestically-focused outer London markets, supported by low interest rates and high employment, but affordability issues continue to affect transactions,” says Dominic Agace, Chief Executive Officer of Winkworth (pictured, left).
The company also says the strength of its brand is more than a logo, and that despite soft transactions and reducing prices in many areas of London and beyond, Winkworth-sold properties achieved average prices 2% higher during the first six months of the year, compared to the same period last year.
“With the sales market subdued, our investment in the lettings and management side of the business has continued to pay dividends,” says Dominic.
“Despite an increase in supply post the buy-to-let mini boom weighing on rental prices, lettings and management revenue grew by 4% and increased from 40% in H1 2016 to 45% of total gross revenue for the franchised office network.”
Winkworth has also been busy growing its franchise network with new seven new offices signed up so far this year. These are in Kingsbury in North London, Milford On Sea in Hampshire, Cheltenham in Gloucestershire, Surbiton in South London, Sunningdale in Surrey and Dartmouth and Brixham in Devon.