(Reuters) - British lettings agent MartinCo (L:MCOM) saw some recovery in the market in August after weakness in June and July prompted it to cut jobs, its chief executive said on Wednesday.
Britain's fourth-largest lettings and estate agency company saw lettings and sales transactions across its business fall in June and July due to concerns regarding Britain's vote to leave the European Union, CEO Ian Wilson said.
Cost cuts including the loss of six staff positions would lead to annual cost savings of 350,000 to 400,000 pounds, Wilson said.
"We didn't know that June and July would turn into a good August... so it seemed sensible to us, as a management, to avoid any unnecessary costs in our cost base for the remainder of the year," Wilson told Reuters.
The UK property market was one of the first sectors hit by uncertainty after Britons voted on June 23 to leave the EU, at one point forcing more than 18 billion pounds ($24 billion) worth of commercial property funds to be frozen.
Transaction levels in prime central London had already started to fall in the run-up to the referendum, thanks partly to April hike in Britain's stamp duty tax on second homes and buy-to-let properties.
MartinCo said there were signs of a recovery in lettings transactions in August, after a short-lived downturn in the wake of Brexit.
Housing sales levels had recovered some ground in August, albeit the recovery did not match that seen in lettings, Wilson said.
Real estate agents and property websites such as Countrywide (L:CWD), Foxtons (L:FOXT) and Rightmove (L:RMV) have raised concerns over the state of the residential sales market.
However, in recent weeks, several builders have said sales have risen and data has suggested that prices are climbing again, adding to signs that the housing sector is recovering.
Wilson said house sales across southern England in August had been in line with or slightly below the previous year's levels.
The Midlands and the north of England performed better than the company expected, Wilson added.
"It's a mixed picture, but across the board, sales and lettings, North and South, August was a much better month than June and July," Wilson said.
MartinCo on Wednesday reported a 31 percent rise in core earnings (EBITDA) to 1.7 million pounds for the six months to June 30, helped by strong revenue growth.
Its shares rose as much as 9 percent to their highest this year, before paring gains to trade up 4.6 percent at 167 pence at 1207 GMT.