M Winkworth on Tuesday said that it expects full year revenue and profit to exceed forecasts following strong demand during the year, particularly from rentals.
The London-based estate agent said market conditions remained strong in the third quarter of 2022, with network sales 38% higher than the same quarter last year. This reflected both an ‘overhang of uncompleted transactions from Q2 and still strong levels of demand.’
Chief Executive Officer Dominic Agace said: ‘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.’
Lettings were ahead by 13% over the same period, with London rentals continuing to be driven by higher prices rather than a significant increase in new mandates, the company said.
Winkworth said it weathered the volatility from the mini-budget with only a limited number of fall throughs, although new buying registrations fell ‘significantly’.
With the reversal of most of the measures in the mini-budget, Winkworth expects to see a moderation in mortgage rates and a sales rebound in November 2022 before the ‘traditionally quiet Christmas period’.
As a result of this ‘buoyant level of activity’ in the second half of 2022, Winkworth’s full year revenue is expected to exceed management forecasts. It also expects its full year pretax profit to be ahead of the current market forecast of £2.1 million.
It has a ‘healthy pipeline’ of three new offices due to come on board over the coming twelve months.
Looking forward, Agace said: ‘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.’
Shares in M Winkworth closed 4.8% higher at 165.00 pence each in London on Tuesday afternoon.
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