Belvoir has reported that group revenue is up 14% in the first four months of the year, helped mainly by its financial services division, while service fees from sales were down.
A trading update from the agency franchise and financial services group said property division revenues were up 8% while financial services rose 20% in the four months to 30 April 2022.
Management service fees (MSF), Belvoir's key underlying income stream from its property franchise division, is up 1% on 2021.
The update said: ”As the sales market normalised after exceptionally buoyant trading in 2021, the number of UK residential property transactions fell by 24%.
“Meanwhile, the UK rental index rose to 2.7%, the largest annual growth since January 2016.
“Against this backdrop of changing dynamics in the housing market, MSF from lettings increased by 4% mitigating the 11% lower level of MSF from sales, and Belvoir's lettings to sales ratio in the first four months of the year was 78:22 (FY21: 74:26).”
Income from the financial services division was up 20% with Belvoir's adviser network at 243 as at the end of April 2022 (April 2021: 214).
The update said: “As the market for new house mortgages has tailed off in line with residential property transactions, our mortgage advisers have been able to service the group’s extensive client base during what has been a busy period for remortgages, exacerbated by increasing interest rates.”
Dorian Gonsalves, chief executive of Belvoir Group, said: "Since early 2020, the UK property sector has experienced a number of different market drivers, but for Belvoir it has been 'business as usual'.
“We have continued to focus on the group's growth by supporting our franchisees and advisers to ensure that they are best placed to respond to the market conditions, and furthering the Group's ambitious growth plans through two strategic acquisitions.
"With the brokerage model growing within the estate agency sector, the key strategic driver for the acquisition of Mr and Mrs Clarke was to introduce a high-quality personal agency model to the Belvoir Group to complement its existing high street brands.
"The recent acquisition of TIME Group will enable us to further strengthen our offering of mortgage advice through our property franchise network in the Midlands and the North, where the Belvoir Group property brands are well represented.
"Belvoir has a proven track record in delivering growth built around a resilient business model underpinned by a significant recurring and reliable lettings revenue stream, and a successful acquisition strategy that has facilitated its diversification into estate agency and financial services.
“A long-serving and experienced management team has ensured that all acquisitions, 10 since 2015, have been successfully assimilated into the Group.
"The Board remains confident that its business model and growth strategy present a strong investment case for shareholders and deliver enhanced value for all our stakeholders."