Winkworths blame higher stamp duty and no bounce back after elections.
- January 12, 2016
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Winkworth agency are profits warning on higher stamp duty for the expensive properties and the lack of a post-election bounce.
.Sales remain slow in the firm’s core London market and in a statement to the City the agency said “a large part of the slowdown can be attributed to the stamp duty changes introduced in the latter part of 2014”.
They continue “It is expected that profits for 2015 will be slightly below market expectations. Our dividend is well covered, and with no debt and solid cash-flow we expect to be able to maintain our progressive pay-out policy. This will still be the second best ever year for Winkworth, despite transactions still being 26% off their historic peak.”
But, Winkworth’s lettings operation has a much stronger performance. They say “The private rental sector now represents 30% of the London property market and we expect rentals to continue to grow in importance, with a shortage of supply underpinning prices”.