Belvoir Group PLC (AIM:BLV) said strong growth in its lettings business in 2023 so far has kept the estate agency on track to hit forecasts despite a slowing in the sales market.
Management services fees (MSF) from its franchised operations were up by 5% in the period to April compared with last year while lettings MSF are 7% ahead, it said in an update ahead of its AGM
Rents on new tenancies have risen by 9.9% on average, while eight of its franchisees have acquired a local competitor with its assistance.
Fees from sales dropped by 4%, though Belvoir pointed out that UK housing transactions overall were down by 15% in the first quarter of 2023.
Gross profit from the financial services division in the first four months increased by 8% helped by The TIME Group acquisition a year ago, which offset a 12% drop in the underlying financial services business following the mini-Budget chaos.
Mortgage approvals and house prices are starting to pick up again, Belvoir said, but the impact on market sentiment is still being felt.
Dorian Gonsalves, chief executive, commented that it has been a "resilient performance" so far in 2023 and now that it is in a net cash position Belvoir is looking look for good quality, complementary acquisitions.