Buy-to-letMar 9 2017

Countrywide profits slump by £28m amid Brexit fears

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Countrywide profits slump by £28m amid Brexit fears

Countrywide saw pre-tax profits slump by 59 per cent in 2016 amid concerns Brexit has weakened the housing market.

The UK’s largest integrated property services group recorded pre-tax profits of £19.5m last year - down from £47.7m in 2015.

Total house sales fell by almost 2 per cent, while the number of properties under management increased by 12 per cent and the value of mortgages arranged rose by 29 per cent.

A challenging residential market has affected the group’s performance, with transactions down in the third and fourth quarters following the European Union referendum result.

The company has also made investments to support future growth while embarking on a £27.7m restructuring immediately after the Brexit vote.

Countrywide chairman Peter Long said: "In 2016, political uncertainty and stamp duty changes had a significant impact on the UK property market, making it a challenging year for Countrywide. 

“We faced into these challenges - making difficult decisions quickly and acting decisively, streamlining the cost base and transforming our customer offer. 

“In addition we have, today (9 March), announced plans to reinforce our balance sheet giving us a strong platform, going into 2017, to accelerate our transformation agenda."

Michelle Lawson, director at Lawson Financial, said: “My understanding is Countrywide don’t actively market themselves as mortgage providers in their own right, not like London & Country. 

“Brexit for us has not been any kind of issue. I am struggling to have enough time to service the enquiries we have got – we have people doing buy-to-let, residential and shared ownership. I am not seeing the same downturn.”

simon.allin@ft.com