LONDON (Alliance News) - Countrywide PLC on Tuesday said it began 2016 with "real momentum", as transactions on buy to let properties and second homes accelerated ahead of the introduction of a new 3.0% stamp duty surcharge, but the group warned the housing market could slow in the second quarter.
The FTSE 250-listed estate agency and property services company said house exchanges across the group in the three months to March 31 were 30% ahead of the same period last year, which it said was reflected in a strong performance from both its Financial Services and Business to Business divisions. However, Countrywide noted that this was compared to a subdued first quarter in 2015 ahead of the UK general election.
Countrywide said the acceleration in housing transactions in the first quarter came largely from an increase in buy to let properties and second homes transactions in response to the introduction of the UK government's 3.0% stamp duty surcharge on such properties on April 1. As such, Countrywide said it expected a slow down in these transactions in the second quarter, with the housing market also due to be hit by the uncertainty in the lead up to the EU referendum in June.
Countrywide said, during the first three months of 2016, it has seen encouraging organic growth in lettings and has made investment in key acquisitions, citing the purchase of letting agent Finders Keepers, which has eight branches in Oxford, and of property management company The Letting Bureau which operates in East Lancashire.
Countrywide added that its purchase of Mortgage Bureau, which specialises in the land and new homes market, in April and of mortgage broker Buy To Let Business in March builds on its "clear goal to grow customer value in Financial Services".
"Mindful of the political and economic uncertainty surrounding the EU referendum we are taking a cautious view of the coming months. Notwithstanding this, however, we continue to expect to make strong progress in 2016 as we execute our strategy and maximise market opportunities and therefore maintain our current financial outlook for the full year," said Chief Executive Alison Platt.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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