Property franchise network Winkworth has reported an 11% decline in profit before taxation for 2025, with CEO Dominic Agace citing geopolitical instability and mortgage market volatility as key factors affecting the outlook for the current year.
The London-based franchisor recorded profit before taxation of £2.11 million for 2025, down from £2.36 million in 2024. Revenue remained largely flat at £10.74 million compared to £10.79 million the previous year.
Network performance
Despite the profit decline at corporate level, Winkworth’s franchised office network showed growth, with total network revenue rising 6% to £68.7 million from £64.7 million in 2024. Network sales revenue increased 10% to £35.8 million, whilst lettings revenue grew 3% to £32.9 million.
Sales revenues accounted for 52% of total revenues in 2025, up from 51% the previous year. The company opened four new offices during the period and completed seven franchise resales to new operators. Last month, Winkworth acquired Peter Clarke, an independent estate agency operating in the Midlands.
Market challenges
Agace noted that performance in the second half of 2025 was affected by uncertainty surrounding the UK Government’s Autumn Budget. He indicated that early 2026 trading has been “resilient”, with sales applicant registrations and agreed sales broadly in line with recent years, though demand remains concentrated on quality properties in established areas.
The CEO highlighted the impact of geopolitical tensions on mortgage costs. Whilst the Bank of England’s reduction of the bank rate to 3.75% initially supported improved mortgage affordability, with fixed rates reaching their lowest levels since 2022, subsequent developments in the Middle East have reversed this trend.
“The conflict in the Middle East has led to a sharp reversal, however, with major lenders raising fixed mortgage rates and withdrawing products as swap rates have risen on inflation concerns,” Agace stated.
The developments come as regulatory compliance and talent acquisition challenges continue to affect property businesses across the sector. The mortgage market volatility also reflects broader trends in price sensitivity across UK property markets.
Outlook
Winkworth continues to anticipate modest house price growth in 2026 as real incomes recover, though the company acknowledges that the near-term outlook for mortgage costs and inflation has become considerably more uncertain than at the start of the year. The prospect of further bank rate cuts has diminished in the current environment.