Winkworth set to beat its target despite the slide

London-based estate agent Winkworth today said it expects to beat its profit target this year after reporting a 20% rise in revenues for the first nine months.

It said that despite weaker house prices and fewer transactions, particularly outside London, its third quarter had seen "a further strong performance" from its 86 franchised offices.

The firm said that after an initial rapid rebound in house prices in early 2010 prices had slipped back in recent months.

It predicts 2011 will be another slow year with the volume of house sales at a similar level to this year.

It expects prime property prices to move up by around 5% as London continues to attract overseas buyers.

But below the top end it expects prices to steady, having dropped anywhere between 5% and 10% in the second half of 2010.

In the private rental sector Winkworth predicts there will continue to be a shortage of properties available, helping to push rents up around 5% in 2011.

The firm has signed up six new franchises this year with another two expected to be completed by the end of the year.

It has another four franchises in the pipeline for the next year and said it will accelerate its pace of growth.

While existing offices handled 42% more transactions in the past nine months, new franchises increased their transactions by 149%.

Winkworth floated on the junior AIM a year ago at 80p a share. Those shares today rose 2½p to 82½p.