Fears of property price crash
BRITAIN'S largest chain of estate agents today delivered one of the strongest pieces of evidence that the housing market has cooled off.
July sales volumes at Countrywide, owner of London's John D Wood and South East specialists Bairstow Eves and Mann & Co, are down 25% on a year ago with yet more properties coming to market.
Potential buyers are taking longer to make offers but Countrywide chairman Christopher Sporborg said it was too 'premature to say whether this will continue as seasonal factors are playing an important role'.
He added: 'Successive interest rate increases have caused the market to cool in recent weeks but our pipeline of business is positive.'
However, fears of an imminent crash will be stoked as Countrywide also noted the London lettings market 'showing signs of saturation'.
Investment bank Durlacher has warned of a 40% dive in property prices triggered by a sell-off by buy-to-let landlords, but Sporborg shrugged this off as 'unrealistic.'
Countrywide shares slumped 39 1/2p to 280 1/2p.
The recent slowdown in trading has put pressure on Countrywide's average sales commissions, which held at 1.74% at the half-year mark.
But a strong first six months boosted operating profits by 84% to £40.7m, Countrywide's first set of results as a focused residential property stock since demerging life assurer Chesnara.
Pre-tax profits grew to £30.2m from £21.9m last year. The interim dividend rises to 4.5p from 4.3p.
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