A City investor has cut his stake in the rental business Belvoir Lettings.
Belvoir, which floated on AIM in February last year, hit a high of 192p per share in August. Only last month, broker Cantor Fitzgerald upped its price target from 175p a share to 200p.
However, Belvoir’s share price has come down since on the back of a well-documented recovery in the house sales market and the launch of Help to Buy.
Giles Hargreave has now cut his holding from 1.31m shares to 912,623 – equating to a 4.4% stake. The shares are held on behalf of private clients at his broker business Hargreave Hale, and in portfolios managed for Marlborough Fund Managers.
Citywire said of Belvoir: “The outlook for the company appears to be less certain, however, given that residential rental price inflation has begun to slow as congestion in the mortgage market began to ease.
“While pressure on housing remains intense across the south-east of England, some of that is now being diverted into purchasing activity, with surveyors reporting inquiries at record levels.”
Belvoir, which runs its franchising business with a staff of 40, last year made pre-tax profits of £1.39m on a turnover of £4.05m. It has a market capitalisation of £36.91m
Last month, Belvoir announced that it would enter sales and was launching a year-long pilot.
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