Winkworth reports a 20% revenue increase to GBP 5.1 million in the first half of the year, with pre-tax profits rising by 26% to GBP 1 million. London's housing market has outperformed the national average, with sales income up by 11%, reflecting renewed interest in city living without significant price hikes. Winkworth's CEO, Agace, attributed the improved performance to more properties entering the market and transactions returning to normal levels. While the housing market had slowed due to higher interest rates, it recovered in early 2024, driven by expectations of lower borrowing costs and positive economic conditions, with optimism for further growth ahead.
The housing market is returning to more "normalized" levels, and London's revenue growth is surpassing the national average, according to estate agent Winkworth. In the first half of the year, revenue increased by 20% to GBP 5.1 million compared to GBP 4.3 million in the same period last year, while pre-tax profit rose by 26% to GBP 1 million from just over GBP 810,000 the previous year.
Sales revenue across the business saw a 9% increase from last year, with London outpacing the national average. Sales income in the capital rose by 11% due to "a return to popularity of city living...without significant price escalation," according to Agace. "Our first-half results meet expectations and reflect an uptick in sales, with more properties coming to market and transactions returning to more normalized levels," he said.
The housing market had slowed down in recent years due to the impact of higher interest rates, but it has shown signs of recovery during the first half of the year, driven by anticipation of lower borrowing costs. According to Agace, the increase in sellers coming to the market has stimulated buyer demand, and this, combined with more positive economic news, has led to better conditions than in 2023.
Agace expressed hope that political stability and an improving economic outlook would further bolster the housing market in the months ahead.
Overall, Winkworth's strong performance in the first half of the year, with a 20% rise in revenue and 26% growth in pre-tax profit, highlights a recovery in the housing market. London's 11% sales income increase, driven by renewed interest in city living, outpaced the national average. CEO Agace credits the market's normalization to increased property listings and improving economic conditions. Despite recent slowdowns caused by higher interest rates, the outlook has brightened due to expectations of lower borrowing costs and greater political stability. Agace remains optimistic that the positive momentum will continue to strengthen the housing market in the coming months.
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