Landlords are increasingly turning to fully managed services following the introduction of the Renters’ Rights Act, helping Winkworth grow its property management income despite a weaker sales market.
The estate agency franchisor reported a 4% increase in management revenue during the first half of 2026, which more than offset a 3% decline in lettings income.
Overall lettings and management revenue across its network increased 3% to £15.5m, while network sales revenue fell 5% to £16.1m.
Total network revenue slipped 1% to £31.6m, while Winkworth’s own revenue fell 10% to £4.7m, largely reflecting the winding down of its Development and Commercial Investment business and the deconsolidation of its Crystal Palace office.
MANAGEMENT GROWTH
Winkworth said an increasing number of landlords were opting for additional management services to help them navigate changes introduced under the Renters’ Rights Act.
Management accounted for 68% of its lettings and management income during the period, up from 66% a year earlier, while lettings fell from 34% to 32%.
Chief Executive Officer Dominic Agace (main picture, inset) said the figures demonstrated how franchisees had adapted to the new legislation.
He said: “Within our lettings and management income, it was notable that whilst letting income fell by 3%, a 4% increase in management revenue more than offset this decline, demonstrating how well our franchisees have been adapting to the new Renters’ Rights Act, with an increasing number of landlords wishing to use the additional management service to guide them through the changes.”
Winkworth said it was still seeing some landlords leave the sector, although the rate of attrition had slowed since the legislation came into force.
TOUGHER SALES MARKET
Sales accounted for 51% of network revenue compared with 53% a year earlier, with Winkworth pointing to a more challenging market and a particularly strong comparative period in early 2025 ahead of changes to stamp duty.
Profit before tax fell 5% to £0.78m after £110,000 of exceptional legal costs, although operating profit before exceptional costs increased 9% to £0.84m.
Winkworth ended the period with 104 offices after four new branches opened and three closed.
Agace said: “After a very strong H1 in sales in 2025, our year-on-year performance in H1 2026 against a more challenging background was robust.”
The company said underlying profit before exceptional costs for the full year was expected to be slightly ahead of market expectations.
However, continuing legal and advisory costs mean reported pre-tax profit for 2026 is now expected to be materially below market expectations.
