There’s been another upbeat trading statement from franchise giant the Belvoir Group.
The company – which held its AGM yesterday – says so far in 2021 it has had a stronger year than anticipated.
Management Service Fees, Belvoir’s key underlying income stream from franchisees, is up 22 per cent on 2020, with MSF from lettings up 12 per cent and MSF from sales up 81 per cent.
Additionally, the financial services division continues to achieve substantial growth with net income up 24 per cent, in part arising from an increase in Belvoir’s adviser network – up 12 since the year end to 214 – and in part from the high demand for mortgages prompted by the stamp duty holiday.
The statement suggests the current high level of activity is expected to remain strong until at least the end of June.
The statement adds: “In such unusual times, it is difficult to predict what might happen thereafter, but it is quite possible that the pent-up demand will not all be met in that timescale, and the tapered approach to the tax break will avoid a cliff-edge, such that the property market remains busy for most of the year.”
Dorian Gonsalves, Belvoir chief executive, says: “We have not seen activity in the residential property market at this level since early 2007. Even after a busy start to the year for completions, pipelines of agreed house sales are still almost double those of this time last year.
“Our investment in financial services has achieved more than we had hoped, with this division now becoming an important additional strand in our growth strategy. With much of our financial services business drawn from outside of our property franchise network – which currently only accounts for around seven per cent of our mortgage business – there is scope for much further growth both from within our franchise networks and from developing third party lead sources.”
This post has originally been featured in Letting Agent Today.