Countrywide estate agency group report 25% fewer sales in July compared with this time last year and is taking steps to protect profitability in anticipation of less buoyant trading conditions.
Christopher Sporborg, Chairman of Countrywide plc, said, "The housing market began the year very briskly with transaction volumes strong and prices rising robustly. Revenues for our estate agency division have followed suit while profitability has increased dramatically."
But the Chairman also said, "Successive interest rate increases have caused the market to cool in recent weeks, but our pipeline of business is positive. With our firm action on costs, we have taken steps to protect profitability in anticipation of less buoyant trading conditions."
For the six months to June, Countrywide made a pre-tax profit of £30.2m, up 38% on last year's £21.9m.
Mr Sporborg said that it is still too early to conclude that the market has finally turned, "We will have greater clarity on the underlying trends in the housing market as the autumn approaches," he said.
The company also reported that it had opened an office in Alicante, on the Costa Blanca, supplying lower cost properties with some success, however there were signs that property prices in the Costa del Sol had peaked, and that demand was reducing.
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