London-based estate agent M Winkworth PLC (LON:WINK) has reported a pick-up in rental activity in the capital.
Record numbers of rental applicants are registering, it said, with many holding off purchasing. Allied to a reduction in buy-to-let investors registering, the estate agency expects to see activity continuing to grow and prices starting to move upwards. Winkworth operates from 90 franchised offices and as more franchises come on stream it expects trading to improve.
“The rentals and management business is expected to benefit from the important lettings months of August and September, it said.”
Brexit
Sales remain subdued due to Brexit uncertainty and higher stamp duty but though Winkworth does not expect transaction volumes to fall further.
Group revenue was £2.8mln (£2.54mln) in the half year to June, but this is just Winkworth’s share of gross franchise revenue, which dipped to £42.4mln from £42.8mln.
Within that, gross letting sales were flat at £21.3mln while sales income dropped to £10.8mln from £11.7mln.
Interim profits rose 10% to £596,000, while the dividend rises slightly to 3.7p.
Based on our first-half performance and recent trading, we expect full year results to be in line with management expectations, said Dominic Agace, chief executive.