Lettings income saves the day for franchise agency brands

The Property Franchise Group says it’s increased the size of its lettings portfolio by around 1,000 units over the past year - helping it report a surge in revenue.

TPFG calls itself the UK’s largest property franchisor, and trades under a string of well-known brands - Martin & Co, EweMove, Hunters, CJ Hole, Ellis & Co, Parkers, Whitegates, Mullucks & Country Properties. 

In a trading statement to shareholders it says the group achieved strong growth in the first half of the year with revenue up a strong 18 per cent. 

Amongst the key figures was a rise in managed rental properties from 73,000 a year ago to 74,000 today. 

Management Service Fees - which franchise branches pay to the centre - up one per cent overall but specifically up 12 per cent on the lettings side, off-setting a large drop in fees on the sales side as that market normalises. 

The statement says: “Sustained demand for lettings properties and rental inflation means lettings Management Service Fee continues to be a highly resilient revenue stream for the group, contributing 55 per cent of total MSF in the period.”

Chief executive Gareth Samples comments: “We are very pleased with the numbers announced today, particularly given the increasingly uncertain macro backdrop. Our performance demonstrates the many advantages of operating a focused franchise model, which has a multitude of income streams, franchise brands and ways of meeting consumers’ requirements.

“Our team works tirelessly to help our franchisees navigate challenges and explore growth opportunities. As such, the Board are confident that trading remains in line with market expectations for the full year.”

Formal half years figures are released by TPFG on September 13.