Quarterly market review

RNS Number : 7580N

M Winkworth Plc

17 June 2010

 

17 June 2010

M Winkworth plc

Quarterly market review

M Winkworth plc ("Winkworth"), the leading franchisor of real estate agencies, today publishes its quarterly review analysing trends and the outlook for the UK residential property sales and lettings markets. The data for the report is gathered from a monthly survey of franchisees and should therefore be considered as indicative rather than factual. A full copy of the report can be found on the company's website at www.winkworthplc.com

Summary

·      Housing market rebounds - Winkworth's transactions for the first five months of 2010 are 91% higher than the comparable period last year

·      Supply remains tight, but is improving.  New instructions doubled year-on-year in February and March - though the growth in sales agreed meant that overall stock levels were only 3.5% higher in May (1% in London)

·      Buyer numbers are up between 10% and 40% on last year, reflecting renewed  confidence in bricks and mortar

·      In rentals, supply has dwindled, with available stocks down over 40% in April and May year-on-year.  Many accidental landlords have disposed of properties as the sales market improved.  With tenant demand strong and available properties letting quickly, new supply is desperately needed to avoid shortages during the peak summer season

·      In Prime Central London, the market is positive, with transactions up between 10% and 20%, and properties selling in around seven weeks.   Purchasers regard prime real estate as an attractive and safe long-term investment compared with other asset classes, despite some worries over capital gains tax changes 

·      British buyers have taken the election and change of government in their stride, and with high levels of cash are well placed to buy.  Prime Central London remains perennially popular with Italian and French buyers who represent 43% of foreign buyers, and a favoured location for purchasers from the Middle East, China and India, both as a secondary residence and for investment

Dominic Agace, CEO of M Winkworth Plc, comments "Following a strong start to the year, recent activity in the property market has been marked by uncertainty following the creation of a coalition government . In terms of transactions, however, we expect the second half of the year to reflect a more normal level of business, moving towards an annual level of some 750,000. This compares with a long term average of over one million transactions and only 600,000 last year.

Having seen prices recover over the last 18 months we anticipate that a greater availability of properties and ongoing low mortgage availability will cause some prices to fall back from April levels."

For further information please contact:

M Winkworth Plc                                      Tel: [phone]

Dominic Agace (Chief Executive Officer)

Chris Neoh (Chief Financial Officer)

Milbourne (Public Relations)                  Tel: [phone]

Tim Draper

finnCap Ltd                                            Tel: [phone]

Matthew Robinson/Rose Herbert (Corporate Finance)

Tom Jenkins (Corporate Broking)

Re Nomad and Broker

The Company has been advised that, with effect from 30 April 2010, its Nominated Adviser and Broker, has changed its name to finnCap Ltd.

About Winkworth

Winkworth is a leading franchisor of residential real estate agencies and is listed on the London Stock Exchange.

Established in Mayfair in 1835, Winkworth has a pre-eminent position in the mid to upper segments of the central London residential sales and lettings markets. In total, the company operates from over 80 offices in the UK, France and Portugal, having doubled in size in recent years.

The franchise model allows entrepreneurial real estate professionals to provide the highest standards of service under the banner of a well-respected brand name and to benefit from the support and promotion that Winkworth offers. Franchisees deliver in-depth local knowledge and a highly personalised service to their clients.

For further information please visit: www.winkworthplc.com

 

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