Lettings income boost for agency network, with more to come

Lettings income has played a major part in the upswing in income for the Belvoir Group, reported to shareholders in its latest trading statement.

For the first half of 2021 Management Service Fees from lettings - the core franchise revenue stream - was up 13 per cent on 2020, which in turn had been on a par with H1 2019. 

Of the 13 per cent increase this year, some three per cent was attributable to Belvoir’s acquisition of the Nicholas Humphreys network in March, and the franchising of certain previously corporate-owned offices from another recent acquisition, Lovelle. 

“There are signs of more substantial rental increases on the horizon with the rental growth from new tenancies reportedly running at 5.9 per cent UK-wide, and 8.0 per cent, excluding London” says the statement. 

More generally, Belvoir has announced that in comparison to H1 2019, the property division achieved revenue growth of 45 per cent. Of this 25 per cent represented growth in the underlying business and 20 per cent from the Belvoir’s investment in Lovelle and Nicholas Humphreys.

Meanwhile, the financial services division reported revenue up 62 per cent on H1 2019 through organic growth of the adviser network.

Dorian Gonsalves, chief executive of Belvoir Group, comments: "We continue to see exceptionally strong trading across the Group, well ahead of our expectations as at the start of the year. Our residential property sales hit a peak in June and pipelines remain strong.  Lettings has achieved growth from increased rental activity and tenant demand creating an upward pressure on rents.

"Our financial services division continues to go from strength to strength, benefitting from the strong sales market and our enlarged network of advisers.

"The Board has continued to pursue its growth strategy in H1 through the acquisition of Nicholas Humphreys, increasing the footprint of our property franchise division, along with the strengthening of our long-term strategic partnership with The Nottingham Building Society through the acquisition of its mortgage business, Nottingham Mortgage Services Limited.  Both acquisitions will be highly accretive in 2021 and demonstrate the Board's commitment to enhancing shareholder value further."