(Sharecast News) – Shares in UK estate agent Winkworth plunged on Wednesday as the company issued a profit warning due to a slump in house sales.
Rising interest rates have started squeezing the mortgage market and Winkworth said this had led to a 20% fall in sales compared with the first half of last year with earnings expected to “fall below market expectations”.
Two-year fixed mortgages have already passed those after the disastrous mini-Budget of former prime minister Lizz Truss last September.
The only bright spot for the agent was its lettings business, up 20% in the half, as buyers were forced into the rental market.to rent
“While the directors believe that confidence will return once buyers can access a broader choice of mortgage finance, the outlook for sales in the second half of the year remains uncertain,” the company said in a statement.
Reporting by Frank Prenesti for Sharecast.com
