Countrywide sees annual results at top end of hopes

14th Jan 2014 06:48

Estate agent chain Countrywide forecast annual results at the top end of hopes after boosting income by 25 per cent in the last three months of 2013.Countrywide, which runs brands such as Bairstow Eves, Bridgfords and Hamptons, said total income in the three months to December 31st lifted a quarter to £171m, boosting annual income by 11% to £584.8m.In a trading update, the group said: "The continued income momentum together with careful levels of overall cost management will result in a profit for 2013 at the top end of our expectations and will provide a solid platform to deliver our plans for 2014."The fast-recovering housing market in the UK, lifted by government sweeteners such as Help to Buy, has fuelled concerns about an eventual house price bubble.Countrywide said market data remained positive, with Land Registry volumes for the nine months to September 2013 up 12% on the same period in 2012 and Bank of England seasonally adjusted volumes for new home mortgage approvals for the 11 months to November up 19%.The group's own house exchanges rose 18% to 18,782 in the quarter and the number of mortgages arranged by its customers lifted 26% to 18,016.Countrywide sought to allay the fears about a bubble, saying the recovery in market volumes was encouraging but needed to be put in perspective.The last year of Bank of England mortgage volumes showed approvals of 718,000 compared to 1.4m in 2006, it said."After the most difficult five year period ever in the housing market, the recovery is still at an early stage."The key to a lasting recovery is assisting first time buyers and the general housing market outside of London and the South East. We remain supportive of the Government's policies to achieve this and are wary of London-centric market commentators' views that the whole UK housing market is overheated."Countrywide said it was too early to accurately predict the level of housing market transactions in 2014, but added: "Based on recent trends we are confident that we will deliver our current profit expectations for 2014."PW