Countrywide delivers profit warning amid muted housing market

Comments Off on Countrywide delivers profit warning amid muted housing market

The UK’s biggest estate agent has hit investors with a profit warning as the post-election bounce in the housing market fell flat.

Countrywide blamed sellers for sitting on their hands — leaving a shortage of homes for sale — despite a “generally encouraging” economy, echoing recent warnings from rival Foxtons.

Stamp duty reforms last year have failed to spur the lower end of the market while sapping sales of £2 million-plus homes, it added.

Shares slumped 36p or 8% to 429p as the company warned that profits for the full year would come in below 2014’s record £121 million, disappointing City hopes of £124 million.

The slow pace of recovery means sales are likely to be at least 5% below the 2014 level — around 950,000.

However, chief executive Alison Platt said that the country’s economic backdrop points “to modest transaction growth in 2016”.

Finance director Jim Clarke said: “The disappointing thing is that the post-election bounce didn’t really materialise.”

In London, sales of homes above £2 million are down “significantly”, he added.

Countrywide is holding the dividend despite the weakness and could sell its £40 million stake in property website Zoopla.

Source Article from http://www.standard.co.uk/business/countrywide-delivers-profit-warning-amid-muted-housing-market-a3106671.html

November 4, 2015 |
Copyright © 2018 LondonBusinessLink.co.uk. All Rights Reserved. LondonBusinessLink.co.uk
WordPress Directory Theme

Classified Ads Software

We use cookies to ensure that we give you the best experience on our website.
More about our cookies
Ok
Skip to toolbar